“For Generation Z, the perception of any phenomena is clip-like. Pictures are more convincing than text. The shorter the text, the better. The complex is cut off. Z – it’s hard to focus on something for a long time.” – Gen Z coach Alex Zhukov
Who are the Gen Zers?
According to various theories, Generation Z is the generation cohort following Millennials and are born in the following periods:
- from 2005 to the present – according to Strauss-Howe;
- from late 1990s to early 2000s – according to Merriam-Webster;
- from 1997 to 2012 – according to the interpretation of the Pew Research Center;
- from 2003 to 2024 – according to the Russian company RuGenerations; and,
- those who will mature by the second decade of the 21st century, according to the Oxford English Dictionary
Some other names coined for Generation Z include “centennials” (from a century), iGeneration (iGen), an analogy with the iPhone (proposed by psychologist Jean Twenge), digital natives, “ZET” and “zoomers”.
Why do Gen Zers become entrepreneurs?
Did you know that Gen Zers became one of the most vulnerable groups during the general lockdown? Schools, institutes, graduations and internships – everything has moved online. Plus, Gen Zers were the first to be laid off — they were fired 93% more often than employees aged 35 and older.
Also, the reason for Gen Zers’ interest in entrepreneurship is the growing doubt in the classical model of career growth. Education costs more and more. And according to research, many Gen Z entrepreneurs are generally looking for knowledge for their businesses in TikTok.
The experience of the 2008 and 2014 crises showed Gen Zers that higher education and a successful career do not necessarily equate to stability and long-term job security. But of course, this is not the only factor that led Gen Zers to entrepreneurship.
It is believed that, in general, the economic environment is now more favorable for starting a business. Even the pandemic has caused a surge in entrepreneurship. Representatives of Generation Y were no less immersed in the information environment and the Internet and dreamed of their own business, but they did not have money, unlike Gen Zers. Due to the fact that many Gen Zers still consciously live with their parents, saving on food and rent, they have become more active consumers of luxury goods (fashion, “smart” products etc. that make life easier).
In addition to this, an interesting fact is that the children of the Alpha generation (born after 2010), who have pocket money, have become a new object of curiosity for marketers. Sounds insidious, doesn’t it?
“Now the barrier to entry into business is much lower. In today’s world, if someone, whether they belong to Generation Z or not, wants to start their own business, they can take the necessary steps to do this on their own within 24 hours, ”said Jonah Stillman, 22-year-old co-founder of the consulting company GenGuru Stillman.
Here are some statistics to analyze and consider.
According to a 2016 survey conducted by EY Ripples and JA Worldwide, people aged 18–34 back then had a positive view of entrepreneurship.
- 78% of respondents referred to businessmen as successful people.
- 62% said they are considering starting their own business.
- Gen Zers felt tech-savvy and self-sufficient, accessing entrepreneurial opportunities at a very young age.
- 53% of Generation Z (born between 1997 and 2012) wanted to start their own business in the next 10 years. Among those who have already started working, the figure is 65%.
According to a study by worth.com, Generation Z may be the most entrepreneurial, with 62% of those polled already owning or planning to start a business. Gen Zers are starting to have their business already at school with the help of social networks.
What are the psychological features of Gen Z entrepreneurs?
Of course, there are not only social, but psychological factors that characterize Gen Z Entrepreneurs:
- Gen Zers have very quickly developed the skill of working with a large amount of information. Now there are a lot of different sources of obtaining all kinds of information, and in all this information flow they feel like a fish in water.
- They have a broad outlook. Due to the constant flow of various information, the representative of this generation has a fairly broad outlook. They tend to sort all types of information from different sources.
- They are an automated generation. Ten years ago, we had standard digital tools such as Excel, Word, PowerPoint, etc. to solve certain work issues, but now there are a lot of different applications that automate many processes. The Gen Zer understands this well and does not want to waste time on those actions that can be replaced by technology.
- Focus on their interests. Therefore, Gen Zers prefer to open their own business, according to their own rules.
- A simple attitude towards mistakes. Gen Zers grow on games where you can always replay the level, on programs where you can always restore a backup copy from the cloud, etc. This leaves an imprint on their perception of mistakes in life.
A quote from Studentship.PH CEO Kristoni Go in a previous in-depth article on Gen Z entrepreneurs explains why this more accepting attitude of mistakes is so prevalent: “The youth can tolerate much more risks as they have, most of the time, nothing much to lose. This is also a great time and opportunity to think outside the box.”
- Social responsibility. According to the Cone Gen Z CSR Study, 94% of Gen Zers would choose to work for a company that contributes to social and environmental issues.
- Quick Achievements. People of this generation are used to the fact that in games, even at the initial levels, you can quickly earn the first achievements and rewards. They are used to the fact that you can make one interesting post on Instagram or Facebook and get a lot of likes and followers at once. They expect the same quick wins and rewards from work.
- A high self-evaluation. Generation Z is the first generation in the last 100 years that is born with an adult formed attitude to many things. They decide what to do and how to do it. This results in high self-esteem.
Scientists also distinguish such qualities of Gen Z entrepreneurs as creativity, multitasking, enthusiasm, rejection of falsehood, a sufficient level of education, a constant desire to deepen knowledge and self-development. In general, Gen Zers show much greater tolerance than their predecessors, behave more consciously in relationships and carefully approach the institution of marriage, take care of their health and consume less alcohol.
Gen Z entrepreneurs, unlike other generations of business representatives, can work at any time of the day, on weekends and on vacation. They can perform multiple roles in their project – as they are also referred to as the DIY generation. Gen Zers also perform a lot of work requirements on their own mobile phone.
What are the priorities and values?
Gen Z entrepreneurs are more focused on the social significance of the business, followed by financial stability, business growth, image, business sustainability, and only then glory.
They transmit values to their employees such as innovative direction, out-of-the-box thinking, sense of humor, positive spirit and encouragement of the creative spirit.
A Gen Z leader must be honest and have a clear strategic vision. Communication in the company should be less distant. But in general, Gen Z entrepreneurs don’t like meetings that much.
Risks and recommendations by Gen Z entrepreneurs
Of course, every psychological quality has a downside.
Gen Z entrepreneurs are more pronounced in arrogance, denial of hierarchy, selfishness and narcissism. Sometimes, Gen Z is referred to as “Me, Me, Me.”
Gen Z entrepreneurs are multitasking, but in the end, attention is scattered, and information is absorbed much more difficult. In addition, memorization is not a priority for them, because all the information is on the Internet. The skills of its search and verification come to the fore.
Representatives of Generation Z are not used to delving into the task, and therefore the quality of their managerial decisions will fall in favor of speed. It’s a habit that some Gen Z Founders have had to unlearn. “I had to learn that, when it comes to building a startup, it’s a marathon, not a sprint,” said Empath Founder Steph Naval.
In addition, the inability to delve into information and see the details, the tendency to “slide on the top” makes Gen Z leaders susceptible to manipulation. Not prone to analysis, such specialists easily assimilate lies without questioning and testing them. Gen Z entrepreneurs are encouraged to take coaches, psychologists and teachers as mentors who can patiently and carefully guide them along the way to big business.
Gen Z entrepreneurs also often suffer from anxiety and depression, which is in no small part provoked by a large amount of time spent on the Web. Psychologist Jean Twenge has identified the relationship between smartphone use and mood. In addition, the fact of the negative impact of bright light from screens on falling asleep is known – as a result, the younger generation suffers from insomnia more often and, in general, does not get enough sleep. Also, the reason for the depressed state is the unlimited flow of information on the network, including social networks, which give us a distorted social matrix in which Gen Zers, as the most active users, are forced to compare themselves with everyone at once.
From the point of view of partners and founders, the difficulties in working with z entrepreneurs are based on such traits as their: quick burnout, extreme need for freedom and flexibility, laziness, self-centeredness and rebellious spirit.
What do you recommend for Generation Z entrepreneurs?
- Find mentors, coaches and advisors
- Build a system management of the company’s business processes. Gen Z entrepreneurs must understand good things take time. Take Sustainable.ph co-founder and president Shawntel Nieto, for example. When asked what she would do differently in her entrepreneurship journey, Nieto said “I would have doubled in more on the importance of pilot cases/tests and on the need to put up clear working policies, protocols, and systems at the get-go.” Learning from this realization allowed Sustainable PH to grow at a more suitable pace.
- Practice mindfulness meditation to develop attention and focus
- Schedule an informational detox at Vipassana and special retreats
- Develop patience. Naval extols the virtue of patience when asked what she would do differently as a budding entrepreneur. “I would have been more patient with my founding team’s progress/milestones and more detail-oriented with regard to how we set our structure as an enterprise and as a team up,” she said.
- Try to listen to others, it will bring you even more profits
And remember, Gen Zer – you are great! The whole world is at your feet!
ABOUT THE AUTHOR
Anna Kravtcova is a Ph.D. in Organizational Psychology and is internationally certified with EuroPsy or European Certificate in Psychology (2021). She is a member of several respectful international business psychology societies including the International Society for Emotional Intelligence (2017), and the Society for Industrial and Organizational Psychology (SIOP) – a division of the American Psychological Association or APA (2011).
Anna is a speaker at conferences all around the world (USA, Brazil, Portugal, Spain, Czech Republic, Russia, etc.), and did a TED talk on Emotional Intelligence. She has extensive managerial experience across various positions including as HR director (500 employees), COO (6 tech startups), CEO (17 hotels and restaurants), and managing partner of an international consulting company (36 consultants, 150+ clients around the world).
If you’ve watched “Billions” on Netflix, she is “Wendy” in real life.