Generation Z And The Future Of Entrepreneurship

Dr. Petr Svoboda, Lecturer, Skyline University College, discusses how the latest generation is doing things in its own way.

People born of Generation X (born between 1961 to 1981) are characterized by individualistic personalities, impatience and a focus on work-life balance. They are also likely to question authority. Those among Generation Y (born between 1981 to 1996) seek transparency and are very good at multitasking. They try to keep their career separate from their personal lives and they are likely to reject authority. But how about Generation Z (born from 1997 onwards), the “always on” generation?

In terms of jobs, Gen Z seeks flexibility from life and work, and finds authority rather unnecessary. Labelled as “digital natives,” Gen-Zers are very entrepreneurial and tech-savvy. As they were born in the digital age, they have been surrounded by technology from childhood. They are very hard to satisfy and unstable consumers from birth. Because they are used to long-distance communication, Gen-Zers can live and are living alone, and probably will continue living like that. Gen-Zers are also expected to become very qualified and inventive, and to lose the importance of the authority concept in their lives.

Gen Y has set a high bar in terms of tech innovations and entrepreneurship, and Gen Z might be even more ambitious than its predecessor. After the “childhood on a schedule” Gen Z has experienced, they might get empowered by the idea of being the boss of themselves and their future and thus, entrepreneurship may be attractive to them. Young people of Gen Z value creativity, admire innovation, and are willing to work hard. These characteristics would make a perfect entrepreneur. However, coming of age during the global financial crisis might hold this generation back when it comes to making bold leaps. They may overcome their fears and unlock their full potential just by having a proper entrepreneurial mindset.

One must admit that Gen Zers are certainly dreaming big. The vast majority of Gen Z students wish to start a business in the future (many already have) and most of them would prefer becoming an entrepreneur rather than an employee right after graduating from college. They also want to convert their hobbies to full-time jobs and, thanks to social media, creating and promoting their own content has never been easier. The attention of innovative teens keen on sharing their expertise with the world has been caught in particular by YouTube. Today, even teens can launch their own YouTube channels, where they can produce and promote their own content. This content can be on virtually any subject, and big brands and media publications are already acknowledging these entrepreneurial teens and their influence.

Besides this, there has been a substantial growth in entrepreneurship programs provided by universities to support young innovators in previous years. Students can test their innovative business ideas in a friendly setting, without the burdensome fear of real-world failure. Furthermore, providing mentors and connections are also important aspects of university entrepreneurship programs. These programs focus on bringing concepts from the minds of creative students to the market by giving them the resources, classes and mentors they need to create innovative products and services.

Studies are showing that Gen Zers are self-starters who are not scared to take control of their lives and careers. They feel they can do anything by themselves with the help of the internet as their searching skills are brilliant, which also makes them much more independent than Gen Y.

They are open-minded, value unconventional experiences, aiming to obtain freedom rather than making an impact, they also seek financial returns. Another factor empowering Gen Z to adopt the entrepreneurial mindset is experiencing the fragile teen employment market. Due to the weak economy and job market, there has been a sharp decline in the teen employment rate from 45% (typical from 1950 to 2000) to only 26% after 2011.

So, how can Gen Z channel its passions into purpose and its purpose into action? The answer might be in developing an entrepreneurial mindset. Gen Zers are already more socially aware than any generation ever has been, bring a more global aspect to anything they do. Such a shift in thinking can bring opportunities.