Entrepreneurship Across the Generations:
Comparing Baby Boomers and Generation X
A Research Summary from the Make Mine a Million $ Business® (M3) Community
The Make Mine a Million $ Business (M3) community is a network of over 55,000
current and impending women entrepreneurs who have expressed a desire to grow
their firms to the million-dollar level. Nearly all (96%) can be classified as either “Baby
Boomers” (born between 1945 and 1964) or members of “Generation X” (born between
1965 and 1979).1 This research summary reports on the differences between these two
entrepreneurial generations of women, as well as their similarities – including their
common goal of growing their firms to the million-dollar level.
Quick Facts
Even though Generation X women are younger and have been in business for a shorter period of
time, they are already approaching the Baby Boomer generation’s level of business achievement.
Total
Baby Boomers
Generation X
Number of Years in Business
Less than 3 years
50%
46%
54%
3 to 5 years
21
20
23
More than 5 years
25
30
18
Size of Business
Percent with 5 or more employees
17
19
15
Percent with $100,000 or more in revenues
34
36
33
Boomers and Gen Xers have come into business ownership with a different blend of prior
experiences. Gen X women are more likely to have benefitted from early entrepreneurial role
models, and exhibit a more competitive spirit. Boomers, on the other hand, are more likely than
Gen Xers to have prior business ownership experience.
Total
Baby Boomers
Generation X
Percent Who Say They …
Had an early entrepreneurial role model in their family
35%
32%
37%
(parent, grandparent, aunt/uncle)
Had a childhood business experience (lawn mowing,
babysitting)
How competitive were you growing up?
Very competitive
Somewhat competitive
Not at all competitive
Childhood labels (% who were called these as a young girl)
Popular/outgoing
Born leader
Introverted/shy
High maintenance/bossy
None of these
Position just prior to starting business (partial responses)
Work in Corporate America
Work elsewhere (small/medium business, gov’t, non-profit)
Owned another business
Stay at home mom
Entrepreneurship Across the Generations: An M3 Research Summary
21
18
25
24
53
23
24
50
26
28
55
17
40
40
32
21
14
35
38
32
16
16
49
47
31
27
10
31
33
11
9
29
33
14
7
33
32
6
12
1
There are some clear generational differences in the field of vision and focus of Boomers and Gen
Xers. M3 Gen Xers are more focused on the here and now, more stressed about work-life balance
issues, and more inwardly directed. In contrast, Boomers are looking farther down the road with
respect to business planning and have broader goals for their business.
Total
Baby Boomers
Generation X
Life-Stage Differences Between Boomers and Gen Xers
Percent who are married/partnered
66%
65%
71%
Percent who have pre-school children
13
4
28
Percent who feel very guilty about having, at times, to put
26
23
30
work before family
Percent who report high levels of stress related to work-life
25
22
29
balance issues (a rating of 7-10 on a 0-10 scale)
Percent who report high levels of stress related to business
40
39
42
planning (a rating of 7-10 on a 0-10 scale)
Desired Impact for Business (% who say they want to grow
their business to the million-dollar level for the impact on …)
Inward: self/family/employees
Outward: community/the world
Have You Planned an Exit Strategy?
No, haven’t had time to think that far ahead
I’m starting to think about it, but haven’t done anything yet
I’m planning on owning my business for many more years,
so I’ll think about it later
Yes, I started with an end in mind and have an exit strategy
in place
52
48
48
52
55
45
30
30
22
27
32
20
32
27
24
19
24
17
Key Findings
Although the women in the M3 community who are members of Generation X are younger and
have been in business for a shorter period of time than their Baby Boomer counterparts, Gen Xers
are already nipping at Boomers’ heels in terms of their level of business accomplishments.
•
Over half (57%) of the members of the Make Mine a Million $ Business community are
classified as Baby Boomers – aged 44 to 63, born between 1945 and 1964. Nearly four in
10 (39%) are members of
Generation X – aged 29 to 43,
and born between 1965 and
1979.1 Members of
Generation X are then, by
definition, younger than the
Baby Boom generation, and
they also have less business
ownership experience under
their belts. Overall, half of the
members of the M3
community have been in
business for less than three
years, with only 25% having
owned their enterprise for
more than five years. Baby
Boomers have been in
business longer than average:
Entrepreneurship Across the Generations: An M3 Research Summary
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fully 30% have owned their business for more than five years and less than half (46%) have
been in business for fewer than three years. In contrast, fully 54% of M3 members who
belong to Generation X have been in business for fewer than three years, while just 18%
have been in business for more than five years.
•
Despite their relative youth and their shorter tenure among the ranks of business owners,
Gen Xers are approaching the level of business accomplishment of their Boomer sisters.
Fifteen percent (15%) of the businesses owned by Gen Xers have five or more employees,
compared to 19% of the firms owned by Boomers, and one-third (33%) of Gen X-owned
firms have surpassed the $100,000 revenue threshold, similar to the 36% share seen
among Boomer-owned enterprises. Thus, the growth rates of the firms owned by Generation
X women appear to be faster than those of the preceding Baby Boomer generation of
women business owners.
One reason for the higher growth rates of entrepreneurial Gen Xers may lie in their formative
experiences. Gen Xers are more likely than Boomers to say they were exposed to entrepreneurial
influences during childhood. They are also more likely to describe themselves in competitive
terms. On the other hand, a larger share of Baby Boomers have prior business ownership
experience.
•
Members of Generation X may have a leg up on their Baby Boomer counterparts by virtue of
their more empowering formative years. Gen Xers are more likely than Boomers to say that
they had an early entrepreneurial role model in their immediate family (a parent,
grandparent or other close relative). Thirty-seven percent (37%) of Gen Xers, compared to
32% of Boomers, had an early entrepreneurial role model.
•
Members of Generation X are
also more likely to have had
direct childhood business
experience than did their Baby
Boomer compatriots –
whether through babysitting,
mowing lawns, or the like.
One-quarter (25%) of Gen
Xers, compared to 18% of
Boomers, had some direct
revenue-generating
experiences during childhood.
•
Gen Xers are also much more
likely than Boomers to say
that they were recognized and
labeled as either
“popular/outgoing” or “a born
leader” when they were girls (whether by teachers, doting parents, or fellow students was
not specified). Nearly half (49%) of the members of Generation X say they were popular or
outgoing in childhood, compared to 35% of Baby Boomers; 47% and 38%, respectively, say
they were known as “born leaders.” Perhaps on the flip side, Gen X women are also more
likely to admit that they were known as being “high maintenance or bossy” in their youth –
27% of them, compared to 16% of Boomers, admit to that childhood label.
Entrepreneurship Across the Generations: An M3 Research Summary
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•
Baby Boomers, though, may have made up for these youth-based differences with more
business experience as adults. When asked about their position immediately prior to
launching their million-dollar bound venture, 14% of Baby Boomers, compared to just 6% of
Gen Xers, say they owned another business. Most M3 members, however, regardless of
generation, worked for someone else prior to starting their business – either in a large
corporation (31%), or elsewhere – such as in a small or medium-sized firm, or a non-profit
institution (33%).
•
Whatever their prior entrepreneurial or empowering experiences may have been, it is clear
that the younger Generation X are more competitively spirited than members of the
preceding Baby Boom generation. While a solid majority of both groups say they were
moderately (53%) or very (24%) competitive growing up, a larger share of Gen Xers (83%)
than Boomers (74%) would describe themselves as being competitive when they were in
school. In addition, when asked to describe their hypothetical reaction to news that a
competitor had won a new client or contract, Boomers (39%) are more likely than Gen Xers
(29%) to react by thinking “good for her/him,” while Gen Xers (34%) are more likely than
Boomers (25%) to react with the thought that “if I work harder I could do that, too” – a more
competitive response. Early entrepreneurial exposure, a greater prevalence of role models –
and perhaps more parental nurturing or competitive pursuits such as school sports – have
all contributed to a higher measure of moxie in the DNA of the M3 members who belong to
Generation X.
The locus of attention and field of vision of Boomers and members of Generation X also differ. In
terms of life stage, Gen Xers are far more likely to have pre-school children and to be
experiencing stress related to work-life balance issues. Boomers have a wider field of vision with
respect to their desired business impact, and are further along in planning for the future.
•
It is no surprise that, given their distinct positions along the life-stage continuum, Boomers
and Gen Xers differ in their locus of attention with respect to work-life issues. Boomers have
the luxury of being largely past the child-rearing stage, and can spend more time preparing
for the future, while members of Generation X are more necessarily focused on the present.
Overall, Baby Boomers are more likely than Gen Xers (75% to 62%) to have children but,
understandably, far fewer Boomers have pre-school aged children. In addition, while the
majority of both groups are married or partnered, Boomers are less likely (65%) than Gen
Xers (71%) to be in a relationship. Both of these factors mean that members of Generation
X have higher levels of stress related to dealing with work-life balance (29% say they are
highly stressed about it, compared to 22% of Boomers), and higher levels of guilt about
having, at times, to put work demands above spending time with their families (30% feel
very guilty, compared to 23% of Boomers).
•
Perhaps because they are not as engaged in juggling the demands of a young family along
with a growing business, Baby Boomers have paid more attention than have Generation X
women to business succession planning and exit strategy issues. Over half of Boomers are
thinking about it (32%) or have a succession plan in place (24%), while over half of Gen
Xers say they have not had time to think that far ahead (32%) or report that since they are
planning on owning their business for many years they’ll think about it later (24%). In
addition, Gen X women report somewhat higher levels of stress with respect to business
planning (working ON the business rather than IN it). Forty-two percent (42%) of Gen Xers
say this issue causes them a high level of stress, compared to a lower 39% of Baby Boomer
women. Gen Xers average 5.8 on a 0-10 scale of stress on this issue, compared to a 5.4
average among Boomers.
Entrepreneurship Across the Generations: An M3 Research Summary
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•
In addition to a wider field of vision, age also brings with it a somewhat greater focus on
personal health and well-being (or perhaps a greater awareness of one’s mortality).
Boomers are much more likely than members of Generation X to visit their doctor for regular
breast exams and mammograms (63% versus 42%), and also more likely to take vitamins or
other dietary supplements (69% versus 58%). Boomers are also more likely to say they eat
right (71% vs. 63%) and get plenty of sleep (54% compared to 45%). Half of both groups
(53% of Boomers, 51% of Gen Xers) say they exercise regularly.
•
There are some interesting
differences between Baby
Boomers and members of
Generation X with respect to
their desired level of impact
for their business. When
asked to complete the
sentence “I want to grow my
business to the million-dollar
level mostly for the impact that
it will have on …,” the majority
of Boomers want their
business to have an impact
broader than themselves or
their employees. A 52%
majority states that they would
like to grow their enterprise to
have an impact on their community (21%) or the world (31%). Conversely, a 55% majority of
Generation X owners say that their desired impact is closer to home: 12% wish to grow their
business primarily for the impact it will have on themselves, 38% would like the impact to be
mostly on their families, and 5% would like to have the strongest impact be among their
employees or shareholders.
•
While the intended impact of their enterprises varies by entrepreneurial generation, their
greatest sources of satisfaction from business ownership do not. The sense of
accomplishment gained from growing their enterprises is the greatest source of satisfaction
for the greatest numbers of both Baby Boomer (49%) and Generation X (52%) owners,
followed by having more self-determination and control (25% Boomers, 28% Gen X).
Another 17% of Boomers and 16% of Gen Xers get the most satisfaction from being a role
model for others. Just 9% of Baby Boomers and only 4% of those from Generation X say
that money brings them the greatest amount of satisfaction from growing their million-dollar
enterprise. So, while $1,000,000 in revenues is their business goal, business ownership
reaps far more than a monetary reward for these women – irrespective of their generation.
What can we gain from a greater understanding of these generational differences? An
awareness that there are not only life-stage factors that one must consider when communicating
to and addressing the needs of women business owners, but that the underlying goals and
motivations of these growth-oriented women entrepreneurs do indeed differ across
entrepreneurial generations. Such differences may remain as their businesses grow and their
owners gain experience – which will have an impact on the choices these women make during
their journey to the million-dollar milestone, and should be of interest to business educators,
entrepreneurial support organizations, corporations, and policy makers.
Entrepreneurship Across the Generations: An M3 Research Summary
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Survey Methodology
An online survey was conducted among members of the Make Mine a Million $ Business® community
from April 3 to 21, 2008. Over 1,100 women (1,127) responded, for a 19% response rate (among the
nearly 6,000 who opened the survey e-mail alert). The sampling error for a survey of N=1,127 is +/- 2.8%
at the 95% level of confidence – meaning that, 95 times out of 100, survey responses will be within 3
points of true population values.
The Make Mine a Million $ Business Initiative
Make Mine a Million $ Business is a program of Count Me In for Women’s Economic Independence and
founding partner, American Express OPEN®. The program provides a combination of money, mentoring,
marketing and technology tools that women entrepreneurs need to help grow their businesses from micro
to $millions. Visit www.makemineamillion.org for more information.
Count Me In
Count Me In for Women’s Economic Independence is the leading national not-for-profit provider of on-line
business loans and resources for women to grow their micro businesses into million-dollar enterprises.
Find out more at www.countmein.org or call 212-245-1245.
American Express OPEN
American Express OPEN is dedicated exclusively to the success of small business owners and their
companies. OPEN supports business owners with exceptional service. With tailored products and
services, the team delivers purchasing power, flexibility, control and rewards to help customers run their
business. Specifically, business owner customers can leverage an enhanced set of products, tools,
services and savings, including charge and credit cards, convenient access to working capital, robust
online account management capabilities and savings on business services from an expanded lineup of
SM
partners. To obtain more information about OPEN , visit OPEN.com, or call 1-800-NOW-OPEN to apply
for a card or loan. Terms and conditions apply.
American Express Company www.americanexpress.com is a leading global payments, network and
travel company founded in 1850.
This analysis report was prepared for Count Me in and American Express OPEN in July
2008 by Womenable. Womenable is a research, program and policy development
consultancy enabling women’s entrepreneurship worldwide. Womenable’s mission is to
improve the policies and programs enabling women’s entrepreneurship by providing factbased information, thoughtful and insightful analysis and actionable recommendations.
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1
The remaining 4% of the M3 population are either Generation Y/Millenials (3%; born after 1979) or Traditionals (1%;
born before 1945). There are too few of either of these groups to include in this generational analysis.
Entrepreneurship Across the Generations: An M3 Research Summary
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