Tensions between Japan and South Korea come as the U.S. and its trading partners are embroiled in a global trade war.Technologyread more
The one-to-eight stock split would mean the current number of ordinary shares — which stands at 4 billion — will increase to 32 billion. It comes ahead of a reported Hong Kong...Asia Marketsread more
Minutes from the Reserve Bank of Australia's monetary policy meeting in July showed the central bank was ready to adjust interest rates if required.Asia Marketsread more
Current and former Tesla employees working in the company's open-air "tent" factory say they felt pressure to take shortcuts to hit aggressive Model 3 production goals,...Technologyread more
China's fiscal spending increased 10.7% in the first six months from a year earlier, the finance ministry said on Tuesday, underlining the government's bid to support the...China Economyread more
Von der Leyen, one of the longest serving ministers in Germany, has tried to woo European lawmakers over the last two weeks.Europe Newsread more
The findings by McKinsey and Company come amid a year-long tariff fight between the U.S. and China, which has spilled into areas such as technology and security.China Economyread more
Microsoft's considerable reach into the corporate world isn't something Slack CEO Stewart Butterfield is very concerned about.Technologyread more
A devastating outbreak of African swine fever that has killed millions of pigs in China is changing attitudes in a country where farm hygiene has often been seen as lax by...Livestockread more
In a closed-door meeting at a Manhattan mansion, executives outlined changes to controversial software that was implicated in two crashes.Aerospace & Defenseread more
President Donald Trump and the RNC are picking up key supporters in the business community who did not back him as a candidate in 2016.2020 Electionsread more
Despite tech savvy and higher levels of education than prior generations, mounting student debt levels are beginning to drag down younger Americans' start-up ambitions, according to a new report.
"Saddled with student loan debt, millennials can't afford to be entrepreneurs," according to 2015 state of entrepreneurship report from the Kauffman Foundation, a nonprofit devoted to studying entrepreneurship.
Start-up rates among Americans ages 20 to 34 peaked at 35 percent in 1996 and has since declined to 23 percent in 2013, according to Kauffman.
In addition to the annual summary, Kauffman's monthly readings on entrepreneurial activity show a decline among millennials. Young adults launched about 40,000 fewer new businesses a month in 2013 compared to 1996.
The Kauffman report is among a growing pool of sometimes conflicting data about the future of millennials and start-up activity. While Silicon Valley is hot with start-ups, battling it out for top talent, Kauffman's report offers some skepticism about young adults and their impact on business creation.
For example, a separate report by Babson College on global entrepreneurship, found that more young people ages 25 to 34 are starting businesses. The report, released this month, found that 18 percent of young Americans were starting new businesses last year, higher than 15 percent in 2013. In contrast to other studies, Babson researchers monitor individuals starting companies while they're still employed, which may account for some of the discrepancy.
The Kauffman report also raises questions about the ripple effects of younger workers. For example, despite expressing strong interest in start-ups, millennials have created fewer businesses since they entered the workforce in the early 2000s. The nonprofit also says its unclear if the explosion of college start-up programs—a growing cottage industry on campuses—will actually translate to business creation.
Given shifts among younger workers, the concern now is whether entrepreneurship rates in total (including older workers) will continue to recover from the recession lows or plateau to a kind of "new normal" of lower entrepreneurship activity.
To be clear, Kauffman's annual summary excluded specific figures or percentages on the impact of, for example, student debt levels or college start-up programs on entrepreneurship rates. The report instead raises some skepticism about millennials and start-up rates.
The correlation between student debt and entrepreneurship is intriguing, of course. But this area of research has only begun among experts at Kauffman and other organizations.
The relationship between debt and entrepreneurship is "complicated," says Dane Stangler, vice president of research and policy at Kauffman. "On the one hand it makes sense that if you are coming out of college or grad school with a load of student debt, starting a company is not among your most viable priorities," Stangler said. "On the other hand, we didn't expect hoards of 22-year-olds to start companies. They do get to more entrepreneurial-inclined ages [late 30s and early 40s] they will have better control of their finances."
Other experts say the long-term impact of student debt on start-up creation remains to be seen.
"There are certainly young people who would like to start companies, have student debt and feel that because of that they can't," says Sandy Baum, a senior fellow at the Urban Institute. "On an individual basis that is probably true. But would a high percentage of people, who have student debt, not become entrepreneurs because of that? That seems unlikely," she said.
Just ask 31-year-old Zachary Schwitzky.
Despite having $12,000 in undergraduate debt from Seton Hall University, Schwitzky, then 29, launched Newlio, a New York City-based market research company. The start-up creates customer surveys for big clients including McDonald's and Hilton.
His debt may be a nuisance, but it also motivates him. "Starting my own company without any financial obligations can make it easier to not put the work in," Schwitzky says. "I have something to fuel the fire."
His company has raised $1.8 million in two private funding rounds, and is about six months away from being profitable, Schwitzky says.