Why Gen Z is thriving in the entrepreneurial life

Older generations have often tended to view entrepreneurship as a risky career path. For Gen Z, it’s the exact opposite.

A few years ago on a flight to Phoenix, AZ, I struck up a conversation with two 17-year-old twins who couldn’t be more different. The sister was an excellent, fair student; the brother was a very enterprising young man who had already started his own car wash business. I sat in awe as he shared how he had already built five facilities in his region and had plans to expand with five more.

What was his biggest reason for becoming an entrepreneur? “I hate school”, he confessed to me. At the time, he was completing online courses to graduate six months early. Entrepreneurship was, for him, a one-way ticket out of the classroom and into the real world.

Not even old enough to vote, this young man was already on his way to a rewarding and self-directed career. And he is by no means unique in his generation.

Gen Z is quickly becoming recognized as one of the most entrepreneurial generations to date, with a 2020 survey by WP Engine finding that 62% of Gen Zers had plans to start or potentially start their own business one day. The latest research from Square puts the number even higher at 84% of Gen Zers who want to own their own company in the future.

Square’s study found that, among Gen Z business owners:

• 72% believe that times have been more difficult economically for them than for previous generations, but that’s not stopping 39% from wanting to start another business.
• 39% employ five or more employees
• 46% want lower taxes, 42% want affordable housing and 35% believe in the benefits of universal basic income
• 45% are using their savings to start their own business
• 80% started their business online or had a mobile component, while another 46% started with a physical location

“Many Gen Zers and younger audiences are looking toward entrepreneurial opportunities as a more attractive career path,” says Dave Liniger, himself a serial entrepreneur and founder of global real estate franchise RE/MAX. “This generation values ​​independence and flexibility in their work lives, often prioritizing work-life balance and the ability to control their own schedules.”

A further motivation for young entrepreneurs is their desire to make a positive impact on their community. “They are motivated by social, environmental and ethical concerns, leading to the rise of social entrepreneurship as well,” says Liniger. “Gen Z tends to support and start businesses that align with their values, focusing on improving the community.”

Enterprise for Work Safety

Along with the ability to make a positive difference, entrepreneurship has other attractions for Gen Z. “Entrepreneurship is an attractive career path for Gen Zers who have experienced economic volatility and the rise of the gig economy,” says Liniger. “They see entrepreneurship as a sustainable path to financial security and personal fulfillment.”

This is in stark contrast to the prevailing view of many in previous generations, who often saw entrepreneurial pursuits as uncertain ventures fraught with risk. For these workers, the security of a corporate career was more attractive than the more nebulous promise of ‘being my own boss’.

Not everyone wants to be their own boss, and that’s okay. But for those who do, it seems much more attainable in our modern, technology-driven culture than ever before. “Growing up in the digital age, Gen Z has seen young entrepreneurs excel in technology as well as other industries, and aspire to pursue an entrepreneurial career path,” says Liniger.

While entrepreneurship is far from easy, the practical side of how to get started is less shrouded in mystery than it once was.

“Although many young people often don’t have the financial means or connections to start a company/business in the same way as older generations, digital and social media platforms today offer accessible options for building a personal brand,” says Liniger, ” as well as a means to monetize their passions through online businesses.”

starting

To me, the fact that Gen Z is choosing entrepreneurship is not the most interesting thing in the big picture. Rather, it’s that so many young entrepreneurs today are bypassing the typical college route, choosing instead to find alternative sources of education and training. Or, like the young car wash tycoon I met, they’re just learning as they go.

“Many continue to believe that the traditional path to entrepreneurship often involves a college education, an MBA and years of industry experience,” says Liniger. Liniger, who didn’t attend college before launching his real estate empire, believes that successful entrepreneurship often has more to do with personal character and work ethic than a formal education.

“In my latest book Perfect 10, I emphasize that success is not determined by conventional indicators of education or background, but by strength of character and adaptability,” he says.

While attending college isn’t necessarily the wrong way to start on your entrepreneurial path, it’s no longer the only way. Liniger’s advice to young entrepreneurs who want to explore a different path is to work with and learn from someone they see as successful in their business/industry. Then, apply these learned skill sets to their career paths and work ethic.

“When I first entered the real estate industry, I first became successful as an agent learning all the ins and outs of the industry before taking the plunge to start my own company,” he says. “It’s helpful to gain experience in the industry for a year or two to fully understand the inner workings and the necessary tools you may need to then start a business of your own.”

Where are they headed?

Like me, Liniger is optimistic about the prospects for Gen Z entrepreneurs. “This generation specifically tends to march to the beat of their own drum and has the mindset that they are ready to pursue an entrepreneurial path,” he says.

Perhaps this is why they are not adapting to the negative stereotypes that are often held around them by many older generations. “We’re stuck in this quagmire and mindset that every generation that comes after us is inferior to the previous generation,” says Liniger. “It’s a false notion to look at generations younger than yourself and think ‘they just don’t get it.’

Whether they run their own business or pursue employment with an established organization, Gen Z and other generations to come will be the future of the workforce. “Many individuals within these new generations will continue to achieve success and thrive within their respective industries,” says Liniger.

One thing is clear: It is a mistake to underestimate what they can achieve.