Forget the Startup Grind — Millennials Are Taking a Shortcut to Business Ownership

Millennials are rewriting the principles of enterprise possession. After shedding a way of management in the course of the pandemic, many are looking for independence by shopping for current companies — a pattern referred to as Entrepreneurship Via Acquisition (ETA). As an alternative of ranging from scratch, these entrepreneurs are getting into established firms and taking the reins, although this path requires a clear-eyed view of what possession actually entails.

Associated: Ought to Millennial Entrepreneurs Begin a Enterprise or Simply Purchase a Enterprise?

The rise of the “new previous” ETA

ETAs aren’t new, however millennials are embracing them in rising numbers. In line with enterprise analysis, 16% of small enterprise homeowners in 2024 have been between 25 and 44 years previous, up from 13% in 2023.

As workplaces reopened after the pandemic, millennials and different professionals realized they needed to chart their very own course. But the financial upheavals of the previous decade left many risk-averse. Shopping for an current enterprise supplied a safer path to entrepreneurship — one that also lets them name the photographs.

An ETA is essentially a enterprise buy, however it differs in two key methods:

Lively management – In contrast to conventional buyers who could purchase a enterprise purely for monetary returns, ETA patrons wish to be in cost. They’re entrepreneurs within the truest sense, looking for stability and independence slightly than employment safety.Resilient companies – ETAs typically goal smaller firms with decrease capital necessities which are immune to recessions and automation. Assume childcare, plumbing, HVAC or electrical companies — industries that stay in demand even in robust occasions.

This pattern additionally displays a broader shift away from conventional startup tradition and enterprise capital. After years of tales about founders chasing VC {dollars} whereas taking outsized private dangers, many entrepreneurs are choosing the extra grounded path of shopping for a enterprise backed by tangible property and predictable money stream. Banks and the Small Enterprise Administration are sometimes extra prepared to finance these acquisitions than riskier startups, making ETAs a sensible route for brand spanking new homeowners.

Resetting expectations

Shopping for a enterprise isn’t a shortcut, and there are widespread misconceptions that may derail ETA offers:

Headlines typically counsel that retiring child boomers are flooding the market with companies for keen patrons. In actuality, it’s a vendor’s market. Some companies appeal to a whole lot of potential patrons. Whereas boomers nonetheless personal about 30% of small companies in 2025, competitors is fierce.Some patrons hope to accumulate a enterprise with no private funding. That hardly ever works. Like shopping for a home, lenders wish to see “pores and skin within the recreation.” Partial financing is widespread, however credibility and dedication require some private capital.

Associated: How the Subsequent Era of Entrepreneurs Is Outpacing Us — and Why

Methods for ETA success

Each patrons and sellers profit from skilled advisors. Past analyzing financials, advisors can assist navigate the emotional and operational realities of enterprise possession.

Proudly owning a enterprise is tough work, particularly within the first two years. You gained’t have the liberty to take prolonged journeys or relocate on a whim. However in case you decide to this intensive early interval, the payoff is actual: by yr three, you can begin shaping a enterprise — and a life-style — that works for you.

ETAs aren’t a assured path to instantaneous wealth, however for millennials looking for management, independence, and significant work, shopping for a enterprise provides a grounded, achievable technique to construct the life — and legacy — they need.