Generation Z, often referred to as Zoomers, is gaining a reputation for being highly entrepreneurial. A 2022 study found that 62% of Gen Z individuals have either started their own business or plan to do so in the future.
Gen Z is redefining work and success with their unique outlook. Having grown up with the internet and social media, they see the world differently than previous generations.
What Makes Gen Z Entrepreneurs Different?
Born roughly between 1995 and 2010, Gen Z is the most ethnically diverse generation in American history. Their identity has been shaped by the digital age, climate change concerns, a shifting economy, and the COVID-19 pandemic.
Gen Z has a strong online presence, engaging in online work, shopping, dating, and socializing. They have access to more information than any previous generation.
Gen Z entrepreneurs are naturally inclined to solve problems independently and seek out information on their own. They can quickly create websites, launch online stores, or join digital marketplaces, often at little or no cost.
Skepticism, partly fueled by the pandemic, towards traditional career paths is a major reason why many Gen Zers are drawn to entrepreneurship.
How Gen Z Approaches Business Ownership?
Gen Z approaches business ownership in several unique ways:
1. Social Mission Focus: Gen Z is more socially conscious and often starts businesses that aim to make a positive impact on the world, focusing on sustainability, social justice, or environmentalism.
2. Tech Savvy: Growing up with technology, Gen Z is comfortable using it to start and grow businesses. They often use social media to reach customers and promote their ventures.
3. Flexibility and Adaptability: Having experienced significant economic and social upheavals, Gen Z is adept at being flexible and adaptable, making them well-suited for entrepreneurship’s challenges.
Overall, Gen Z is poised to bring fresh ideas and perspectives to the business world. Their innovative approaches will likely shape the future of entrepreneurship.
Tips for Gen Z Small Business Owners
Successful small business owners know that turning an idea into a sustainable business requires a variety of skills. Here are some tips for Gen Z entrepreneurs to develop the essential skills needed to bring their business dreams to life:
1. Keep Your Business Plan Updated: A business plan is your business’s blueprint, outlining its identity, offerings, and brand. Regularly review and update it to reflect new products, market entries, or funding pursuits. A current business plan is often necessary for securing funding from lenders or investors.
2. Build a Strong Network: Networking with professionals who understand the demands of entrepreneurship can provide valuable advice and support. Expand your network by reaching out to contacts, joining industry organizations, attending events, and using social media.
3. Acquire Management Skills: As a leader, you need to build and nurture a positive company culture. Display the qualities you value in your interactions with customers and employees. Your behavior sets the tone for your business’s culture and values.
4. Prioritize Data Security: Despite being tech-savvy, Gen Z entrepreneurs might overlook data security. Implement a cybersecurity plan to protect your business and customer data from cyber threats. Educate employees on identifying phishing attempts, avoiding suspicious downloads, and using strong, unique passwords.
5. Consider Forming a Legal Business Entity: For new entrepreneurs, a sole proprietorship is a simple and cost-effective option. However, for a growing business or one seeking funding, forming a legal entity like a corporation or LLC might be more appropriate.
Conclusion
Gen Z entrepreneurs are starting their business journeys with a strong digital presence and a knack for independent problem-solving. They challenge traditional career paths, driven by a skepticism towards established success models. By acquiring diverse skills and leveraging available resources, Gen Zers are turning their business dreams into reality in the dynamic world of entrepreneurship.
