People of every generation view the next with a mix of skepticism, criticism, admiration, and confusion. This is a natural human reaction and should come as no surprise.

The events and experiences shaping each generation influence their collective attitudes and behaviors. These generational expectations and approaches to work and careers are key examples. For instance, Baby Boomers prioritize financial rewards, seeking prestige through impressive job titles and perks like fancy offices and executive parking spots. Boomers also tend to be loyal to their employers, often aiming for lifetime employment with the same company.

Millennials, born between 1981 and 1996, have different work attitudes and expectations. Loyalty to one employer is rare among them. According to a Gallup survey, one-fifth of Millennials changed jobs in the past year, and six in ten were open to new opportunities. Gallup found that only about three in ten Millennials are “emotionally and behaviorally” connected to their jobs. Building a small business as a Boomer looks quite different from being an entrepreneur as a Millennial.

The Emergence of Gen Z Entrepreneurs

Generation Z, born between 1996 and 2012, shares many experiences and attitudes with Millennials but also has distinct characteristics. One significant difference is their aversion to long-lasting careers with large companies. Gen Zers are self-reliant and often look to themselves as their primary source of income and job satisfaction.

About 62 percent of Gen Zers have started or plan to start their own business. There are many reasons why Gen Zers are drawn to entrepreneurship, one being their firsthand experience of the risks of traditional career paths.

The oldest Gen Zers were around 12 years old during the Great Recession between December 2007 and June 2009, when about 20 percent of employees lost their jobs. The recession had long-lasting effects, with many unable to find new positions with similar pay and benefits. Watching their parents and siblings struggle with job losses influenced Gen Z’s view of traditional employment.

Even those born after the Great Recession were reminded of the importance of self-reliance by the COVID-19 pandemic, which led to job losses and global lockdowns just as many Gen Zers were entering the workforce. The pandemic made many Gen Zers question the wisdom of traditional career paths, prompting them to reconsider their work-life goals during the Great Resignation.

Technology Makes Entrepreneurship More Attainable

Global events like COVID-19 are not the only reasons why many in Gen Z see entrepreneurship as an attractive career path. Starting a business today is more accessible than ever. One reason is the relatively low cost to launch a new venture. A Gallup study found that the average business startup required less than $10,000 in capital, and nearly three-quarters of new companies started without any outside funding.

This low financial barrier to entry explains why so many Gen Zers launched “side hustles” during the pandemic. These money-making ventures, often springing from hobbies or passions, were financially viable thanks to inexpensive platforms and technologies that made it affordable to create, market, and grow their businesses.

In the past, digital entrepreneurs had to invest in servers, web design, and other essential services to establish an e-commerce website. Today, low-cost or free digital tools abound. Gen Zers can market their products and services on platforms like YouTube, Instagram, and TikTok and use low-cost e-commerce platforms and payment apps for transactions.

For older generations, the plethora of technologies available to start and grow a business can be overwhelming. However, this is not the case for Gen Zers. They have grown up with technology at the forefront, spending an average of 11 hours on their mobile devices and streaming videos for 23 hours each week. This familiarity makes them comfortable using digital technologies to self-promote and build their brands.

Gen Zers are also highly educated. A Pew Research Center study found that Gen Z is the most educated generation yet, with nearly 60 percent pursuing college. In comparison, about 44 percent of Gen Xers were college-bound in 1986, and 53 percent of Millennials in 2002.

Skills Needed for Successful Entrepreneurship

Gen Z entrepreneurs have a lot going for them: they are eager to forge their own paths, view small business creation as a way to build wealth, and possess the technological skills to start and grow a business with relatively little funding.

However, turning a great idea into a successful and enduring company requires a wide range of skills. Here are some tips for Gen Z business owners to develop the essential skills needed to turn their entrepreneurial dreams into reality. Some skills are specific to younger entrepreneurs, while others are fundamental to the success of anyone developing a new business.

Seek out a Mentor

Confidence is crucial for all successful entrepreneurs. Believing in the value of your company is essential to overcome the inevitable setbacks in product development, customer acquisition, and financing. However, confidence must be tempered by the understanding that no one knows everything, and guidance from experienced mentors is invaluable.

Fortunately, many Gen Z entrepreneurs recognize the value of mentorship. A recent survey found that over 60 percent of Gen Z entrepreneurs wanted mentorship on scaling their companies and navigating the financial and legal aspects of small business ownership.

Entrepreneurs can find mentors through various resources. Those still in school can seek advice from business professors or advisors. SCORE is a network of retired executives from various industries offering free mentorship in subjects relevant to entrepreneurs, from business planning to finance to human resources.

Given Gen Z’s comfort with technology, many pursue mentorship in online communities like Reddit or enroll in entrepreneurship MasterClasses. If a Gen Zer seeks your help and you are more established in your career, remember that reverse mentoring can be beneficial. Harvard Business School’s James Heskett highlights the value of younger employees providing insights on technology to their elders, as demonstrated by General Electric CEO Jack Welch’s mandate for GE executives to seek input from younger employees on personal computing and the internet.

Develop Strong Finance Skills

The success of any small business depends on its financial health. Entrepreneurs need to understand key financial concepts.

For instance, do you know what a balance sheet is and how to interpret it? Can you calculate the return on investment (ROI) of your company’s spending? Without these skills, entrepreneurs risk mismanaging valuable capital. Building a strong relationship with a banking partner can help young entrepreneurs elevate their understanding of important financial topics and secure the right financing at each growth stage.

Bolster Communication Skills

Every entrepreneur is ultimately a salesperson. Regardless of the industry or role, entrepreneurs spend their days selling. This includes selling products or services to customers, persuading potential employees to join the venture, and convincing investors of the business’s unique value.

Generation Z, the first to grow up with smartphones and digital everything, has unique communication preferences. A survey found that 65 percent of Gen Zers prefer digital communication over in-person interactions. The same survey found that 70 percent of Gen Zers sleep with their phones within reach, and almost a third think it’s acceptable to text during an in-person conversation.

Successful Gen Z entrepreneurs will understand that their communication preferences are not shared by all generations and may even offend some potential customers, suppliers, and investors. Savvy Gen Z entrepreneurs will learn the communication preferences of different generations and adapt accordingly. Baby Boomers, for instance, prefer face-to-face discussions and might not appreciate business-related texts filled with emojis, which could be acceptable to a fellow Gen Zer.

Online research can provide insights into effective communication with customers, employees, and investors. Mentors can also offer valuable guidance on communication styles and what is important in different communication contexts. Negotiations, for instance, require a different approach compared to sales pitches.

Management Skills That Build a Great Company Culture

Generation Z values company culture. A recent Deloitte survey found that nearly one-quarter of Gen Zers chose their current employer for its positive corporate culture. For Gen Zers, an appealing corporate culture means that a company values more than just profit, emphasizing equality, environmental sustainability, and other societal causes.

As entrepreneurs, Gen Zers must understand that they are leaders responsible for building and maintaining the corporate culture they prioritize. This requires management skills that are both unique to Generation Z and timeless. Effective leaders model the traits they value. For instance, if an entrepreneur values empathy and transparency, their actions should reflect these values to send a powerful positive message.

A survey of Generation Z students provides insights into the kind of leaders they are likely to become. Many Gen Zers prefer a democratic leadership style that seeks consensus before making decisions. Almost as many embrace a leadership style prioritizing the emotions and well-being of others. The survey also shows that virtually no Gen Zers favor a traditional command-and-control leadership approach where senior leaders make all the decisions without seeking input.

Time Management is Everything

Entrepreneurs need various resources to succeed: money, good ideas, capable colleagues, mentors, communication skills, and supportive networks. However, the most crucial resource is time.

With only 24 hours in a day, effective time management is essential for addressing a company’s most important tasks. Many entrepreneurs schedule every minute of their day to provide structure and control, avoiding the pitfalls of multitasking and distractions.

Scheduling each workday in advance forces strategic thinking. For instance, is 30 minutes enough for planning a social media campaign? Or should more time be allocated to product development, recruiting, and fundraising? Entrepreneurs must make these decisions when planning their days. Other tips for improving time management include delegating tasks that don’t require the entrepreneur’s personal attention and using technology tools to save time and boost productivity.

Embracing the Entrepreneurial Journey

Generation Z has the potential to be known as the entrepreneurial generation. They view starting a business as a key to achieving their career and personal goals.

Gen Z has built-in advantages that previous generations lacked. They are skilled in digital technologies and possess the skills that companies of all sizes need today. These technologies make starting and growing a new company more affordable than ever.

Despite these advantages, launching a lasting business is always a challenge. Only