Key Takeaways
- Millennials are shifting toward new avenues in business ownership and 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 purchasing existing businesses – a trend known as Entrepreneurship Through Acquisition (ETA). Rather than starting from scratch, these entrepreneurs step into established businesses and take control, although this path requires a clear 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
ETAs aren’t new, but millennials are embracing them in increasing numbers. According to company research 16% of small business owners in 2024 were between 25 and 44 years old, compared to 13% in 2023.
When offices reopened after the pandemic, millennials and other professionals realized they wanted to chart their own course. Yet the economic upheavals of the past decade have made many risk-averse. Buying an existing business offered a more secure path to entrepreneurship – one where they are still in control.
An ETA is basically a business purchase, but differs in two important ways:
- Active Leadership – Unlike traditional investors who buy a company purely for financial returns, ETA buyers want to be in charge. They are entrepreneurs in the true sense of the word, who are looking for stability and independence rather than job security.
- Resilient Companies – ETAs often target smaller companies with lower capital requirements that can withstand recessions and automation. Think of childcare, plumbing, HVAC or electrical services: sectors that remain in demand even in difficult times.
This trend also reflects a broader shift away from traditional startup culture and venture capital. After years of stories about founders chasing venture capital dollars while taking excessive personal risks, many entrepreneurs are choosing the more informed path: buying a company backed by tangible assets and predictable cash flow. Banks and the Small Business Administration are often more willing to finance these acquisitions than riskier startups, making ETAs a practical route for new owners.
Resetting expectations
Buying a business is not a shortcut, and there are common misconceptions that can derail ETA deals:
- Headlines often suggest that retiring baby boomers are flooding the market with companies for eager buyers. In reality, it’s a seller’s market. Some companies attract hundreds of potential buyers. While boomers still have it 30% of small businesses by 2025the competition is fierce.
- Some buyers hope to acquire a business without any personal investment. That rarely works. Just like when buying a house, lenders want to see skin in the game. Partial financing is common, but credibility and commitment require some personal capital.
Related: How the next generation of entrepreneurs are surpassing us – and why
Strategies for ETA Success
Both buyers and sellers benefit from professional advisors. In addition to analyzing financial data, advisors can help navigate the emotional and operational realities of business ownership.
Running a business is hard work, especially in the first two years. You won’t have the freedom to take longer trips or move on a whim. But if you dedicate yourself to this intensive initial period, the reward is real: in the third year you can start shaping a business – and a lifestyle – that suits you.
ETAs aren’t a guaranteed path to instant wealth, but for millennials seeking control, independence and meaningful work, buying a business offers a grounded, achievable way to build the life – and legacy – they want.
Key Takeaways
- Millennials are shifting toward new avenues in business ownership and 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 purchasing existing businesses – a trend known as Entrepreneurship Through Acquisition (ETA). Rather than starting from scratch, these entrepreneurs step into established businesses and take control, although this path requires a clear view of what ownership really entails.
Related: Should Millennial Entrepreneurs Start a Business or Just Buy a Business?
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