Key Takeaways
Millennials are shifting toward new paths in business ownership, exploring opportunities that offer independence and leadership. This trend highlights a growing interest in sustainable, hands-on entrepreneurship that balances risk and long-term potential.
Millennials are rewriting the rules of business ownership. After losing a sense of control during the pandemic, many are seeking independence by buying existing businesses—a trend known as Entrepreneurship Through Acquisition (ETA). Instead of starting from scratch, these entrepreneurs are stepping into established companies and taking the reins, though this path requires a clear-eyed view of what ownership really entails.
Related: Should Millennial Entrepreneurs Start a Business or Just Buy a Business?
The Rise of the “New Old” ETA
While ETAs are not a new concept, millennials are adopting them in increasing numbers. According to business research, 16% of small business owners in 2024 are between 25 and 44 years old, a noticeable increase from 13% in 2023. This uptick signifies a shift in how younger generations are approaching entrepreneurship.
As offices reopened after the pandemic, millennials—and many other professionals—realized they wanted to take control of their professional destinies. The economic upheavals of recent years, however, made many wary of taking on significant risks. Buying an existing business offers them a safer entry point into entrepreneurship, where they can shape their work lives while still calling the shots.
ETA is fundamentally about purchasing a business, but it diverges from traditional ownership in two main ways:
- Active Leadership: Unlike standard investors seeking financial returns, ETA buyers want to be hands-on leaders. They are true entrepreneurs who value independence and stability over mere employment security.
- Resilient Businesses: ETAs often target smaller companies—like childcare, plumbing, HVAC, or electrical services—that have lower capital requirements and are resistant to economic downturns and automation. These industries generally maintain demand even during challenging times.
This trend also marks a broader move away from traditional startup culture and venture capital. Following years where founders chased venture capital funding—often with immense personal risks—many are choosing to buy businesses backed by tangible assets and reliable cash flow. Lenders, including banks and the Small Business Administration, are usually more willing to finance these acquisitions over riskier startup ventures, making ETAs a pragmatic option for aspiring business owners.
Resetting Expectations
However, buying a business isn’t a shortcut to easy riches, and common misconceptions can hinder successful ETA deals. For instance, the media often depict a market flooded with retiring baby boomers eager to sell. In reality, it’s a seller’s market—certain businesses may attract hundreds of prospective buyers. Although baby boomers own around 30% of small businesses slated to change hands by 2025, competition for viable acquisitions remains intense.
Another misconception is that buyers can purchase a business without any personal investment. Much like buying a house, lenders look for “skin in the game.” Partial financing is common, but buyers often need to demonstrate commitment and credibility by investing their own capital.
Related: How the Next Generation of Entrepreneurs Is Outpacing Us — and Why
Strategies for ETA Success
To ensure successful transitions, both buyers and sellers can significantly benefit from engaging professional advisors. These experts do more than just analyze financials; they help navigate the emotional and operational realities that come with business ownership.
It’s essential to understand that owning a business demands hard work, especially in those formative first two years. Unlike freelance gigs, purchasing a business means you likely won’t enjoy the freedom to take off on extended vacations or relocate impulsively. However, for those willing to commit to this intensive early period, the potential rewards are substantial: by the third year, you can start crafting a business—and lifestyle— that aligns with your aspirations and goals.
While ETAs do not guarantee instant wealth, for millennials in search of control, independence, and meaningful work, buying a business presents a tangible and achievable pathway to building the life—and legacy—they envision.
