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The Major Pitfalls Faced by Young Entrepreneurs

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Launching an ambitious new venture is challenging even at the very best of times.

But for young entrepreneurs, especially those in Gen Z (born after the year 2000), running a business can have even more complications that make it difficult to get basic tasks done.

Whether it’s credit card age limitations or simply not being taken seriously by employees or vendors, young entrepreneurs must find ways to overcome these business challenges.

Identifying the Pitfalls

Today’s infographic comes to us from Insurance Quotes, and it identifies the pitfalls encountered by young entrepreneurs as well as some of youth’s most important advantages.

The Major Pitfalls Faced by Young Entrepreneurs

Millennials, in comparison to the generation before them, have been less entrepreneurial as a whole. In fact, only 24% of 20-34 year olds today are new entrepreneurs, compared to a 34% rate from two decades ago.

Gen Z, however, is looking to take the reins – and now, 72% of high schoolers say they want to start a business someday.

Pitfalls for Young Entrepreneurs

Despite this increased interest in entrepreneurship, Gen Z faces significant pitfalls that must be overcome:

Age Limits
Many small businesses use credit cards or bank loans for day-to-day purposes, whether they are for picking up small expenses, growth capital, or as cash flow buffers.

However, in the United States, you must be 21 years old to get a credit card without a cosigner or proof of regular income. For bank loans, that age requirement drops to 18, but even then a cosigner or good credit is usually required.

In the same vein, age restrictions can also make it hard for young people to network, since many conferences or events take place in licensed establishments like bars or casinos.

Age Discrimination
Vendors, colleagues, and employees may not take young entrepreneurs seriously. Sometimes stereotypes of young people being a certain way may persist, as well.

Passing Class
Young entrepreneurs must divide time between business and school, creating competing priorities.

Rookie Mistakes
Inexperience can also be an early enemy for young entrepreneurs – hiring friends (instead of qualified people), micromanaging, being overprotective of new ideas, or mixing business and personal finances can be just some mistakes made from a lack of experience.

Advantages of Youth

Despite the list of potential pitfalls, it’s also clear that youth can provide big benefits to an up-and-coming business owner.

Firstly, the barriers to entry of business today are lower than ever before. It’s now possible to sell almost anything online for next to nothing, and Gen Z is inherently knowledgeable when it comes to exploiting any new technologies.

Next, without families to provide for or mortgages to pay, young people also typically have fewer responsibilities. This sets them up to take on risks that might steer away more seasoned businesspeople.

Lastly, a lack of experience can also be a massive advantage if used correctly. Young people have no preconceptions of “how things should be”, and can use that to pull off new ideas that others simply couldn’t imagine. This naiveté is arguably a big part of how today’s modern giants like Airbnb and Facebook came to be.

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Maps

Visualized: Which Coastal Cities are Sinking the Fastest?

Many major coastal cities are experiencing local land subsidence where underground soil and rock collapse, causing the surface above to sink.

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A cropped map and ranking of the fastest sinking coastal cities in the world by local land subsidence.

Which Coastal Cities Are Sinking the Fastest?

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

With sea levels rising, there is cause for concern about the livability of major coastal cities—often huge centers of trade and commerce, and homes to millions of people.

But an overlooked area is how coastal cities are themselves sinking—a phenomenon called relative local land subsidence (RLLS)—which occurs when underground materials, such as soil, rock, or even man-made structures, compact or collapse, causing the surface above to sink.

This can exacerbate the effects of rising sea levels (currently averaged at 3.7 mm/year), and is a useful metric to track for coastal communities.

Creator Planet Anomaly, looks at the top 10 cities ranked by the peak subsidence velocity. This graphic is based on a paper published by Nature Sustainability, which used satellite data to track land subsidence changes in 48 high-population coastal cities located within 50 kilometers of the coastline. Their data collection spanned six years from 2014 to 2020.

ℹ️ Interferometric synthetic aperture radar (InSAR) utilizes two images taken at different times, which are then compared to create an interferogram. This interferogram illustrates changes in land motion relative to a reference point in the satellite’s line-of-sight over time. By analyzing a series of these interferograms, researchers can estimate the long-term velocity of the ground’s surface for each city.

In that time period, they found that 44 of the cities they studied—many of them massively populated, developed megacities, built on flat, low-lying river deltas—had areas sinking faster than sea levels were rising.

The 10 Fastest Sinking Coastal Cities

One of the top cities on the list is Tianjin, China with a population of more than 14 million people, which has areas of the city experiencing peak RLLS velocities of 43 mm a year between 2014–2020. The median velocity is much lower, at 6 mm/year, which means some areas are sinking much faster than the overall metropolitan area.

Tianjin is bordered by Beijing municipality to the northwest and the Bohai Gulf to the east. In June 2023, large cracks appeared on Tianjin’s streets, caused by underground land collapses, a byproduct of extensive geothermal drilling, according to the local government.

RankCityCountryPeak Velocity
(mm/year)
Median Velocity
(mm/year)
1Tianjin🇨🇳 China436
2Ho Chi Minh City🇻🇳 Vietnam4316
3Chittagong🇧🇩 Bangladesh3712
4Yangon🇲🇲 Myanmar314
5Jakarta🇮🇩 Indonesia265
6Ahmedabad🇮🇳 India235
7Istanbul🇹🇷 Turkey196
8Houston🇺🇸 U.S.173
9Lagos🇳🇬 Nigeria172
10Manila🇵🇭 Philippines172

Ho Chi Minh City (population 9 million) in Vietnam also faces similar RLLS rates as Tianjin though its median velocity is much higher at 16 mm/year.

Chittagong, Bangladesh, Yangon, Myanmar, and Jakarta, Indonesia, round out the top five fastest sinking coastal cities by relative land subsidence. They all face a similar web of contributing factors as the authors of the paper note below:

“Many of these fast-subsiding coastal cities are rapidly expanding megacities, where anthropogenic factors, such as high demands for groundwater extraction and loading from densely constructed building structures, contribute to local land subsidence.” — Tay, C., Lindsey, E.O., Chin, S.T. et al.

In fact, Indonesia has ambitious plans to relocate its sinking capital, Jakarta, to another island, a move that could cost the Indonesian government more than $120 billion. This comes after the forecast that one-third of Jakarta could be submerged as early as 2050. Aside from the regular flooding, Jakarta is also extremely prone to earthquakes.

Why Measure Local Land Subsidence?

The researchers of this report argue that local land subsidence is largely underestimated in relative sea level rise assessments and is crucial for the sustainable development of coastal areas.

The data they’ve collected—peak velocity versus median velocity—also allows them to identify specific areas and neighborhoods in cities that are undergoing rapid subsidence and thus facing a greater exposure to coastal hazards.

In New York, for example, their results suggested that subsidence is only localized west of Breezy Point and “should not be extrapolated eastward along the coast” of Long Island.

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