Gen Z Entrepreneurs: Defining Business Today
Business trends are ever-changing, dictated by the different working generations that take over the previous ones. And this time, it’s Gen Z’s turn to define business and how it’s run.
Generation Z, also known as Gen Z or Zoomers, are people born from 1997 to 2012. And while older generations still feel like they’re babes just out of their cribs, the older Zoomers have actually already grown up into working adults. Now wielding a staggering $360 billion in spending power in 2021 (Gen Z Planet), they did not get to this point by being bums at home.
On the contrary, Gen Z has been found to have quite an entrepreneurial mindset. A Nielsen study reveals that about 54% of Zoomers want to start their own company or business.
Why does Gen Z want to be entrepreneurs?
This can be attributed to many factors, but none more than the technology they grew up with and the time they were born in.
Zoomers literally grew up with technology. For them, the world has always had access to the internet. Modern convenience is something that they expect rather than dream of. A few typed-in keywords through search engines lead them to relevant information, online courses, and guides for DIY learning. A few taps on a smartphone and they can have anything delivered to their doorsteps. With such power at their fingertips, Gen Z has grown to be one of the most educated and ambitious generations.
Couple that with the fact they experienced the world during periods of recession and multiple global crises, not limited to the financial crisis of 2008 and the recent pandemic-related recession, they found not only the capability but also the desire for more. Thus, Gen Z entrepreneurs and aspirant business owners were born.
Gen Z entrepreneurs define business today
As more and more from Gen Z enters the market, so does their influence on business grows. And with the exceptional number of Zoomers trying their hand at entrepreneurship, they are now causing a shift in the business landscape as they introduce their own unique business models and approaches.
From ecommerce to online marketing, here are the different ways Gen Z entrepreneurs define business today.
It’s all about the power of tech
You cannot separate Gen Z from technology. This is also true for Gen Z startups and businesses in general as they often include the use of modern innovations to improve business operations.
This includes using digital and automated order management systems that track inventory, sales, shipping, and delivery. It also extends to using mobile banking, QR codes, bank cards, and other cashless options for payment.
Gen Z’s use of tech also includes their embracing of modern machines, like 3D printers and portable card machines, that hasten and increase production and transactions.
Zoomers who opt to make a business out of services are also more likely to do it online. Business websites are increasing daily, and digital services are more in demand than ever.
Technology has allowed Gen Z to access more business resources than the generations before them. Even those with no access to formal education can learn about business online. Not graduating high school is no longer a death sentence to one’s career, and virtually anyone can make money online. Small business ideas like a t-shirt printing business, a cookie business, or a coffee business can all be done easily with some online coaching and minimal capital.
Online is THE place to be
Zoomers spend a lot of their time online. And by a lot, we mean north of 8 hours. To let it sink in, Indian Gen Z spends around 8 hours online daily while UK Gen Z spends about 10.6 hours online daily.
Being online natives, they know just how many people are there online with them. With billions of internet users, business visibility online is unparalleled. Social media marketing, email marketing, and online ads can yield a huge amount of engagement and sales. This makes starting an online business a more preferable option for Zoomers. True to form, 64% of Zoomers who plan to start a business would rather start their business online (The Center for Generational Kinetics).
Online websites as well as online marketplaces have become a hit. They are easy to use and already geared with ecommerce tools. Katrina Cacal of Jomarkat General Merchandise and Joselle Fajardo of Clothing Royale PH just are some of the many Gen Z business owners who decided to start an online business on one of the biggest online marketplaces in Southeast Asia, Lazada. And there are many more of them across different countries and platforms.
Gen Z is a highly independent generation with a practical mindset. Years of bad economy and highly accessible self-help technology can do that. For their type of mindset, online is the best choice. Ecommerce tools allow Gen Z entrepreneurs to launch a successful online business alone or with a small team through automation and optimization, at a fraction of the cost of traditional business models that require physical stores and on-hand inventory.
Moreover, with Zoomers’ individualistic attitude, they prefer flexibility in business. An automated online business system and advanced ecommerce tools give Zoomers this much valued flexibility to work whenever and wherever as long as there is an internet connection.
Social awareness is key
Gen Z entrepreneurs are more exposed to issues affecting the world having grown up in the digital age. This makes them more empathetic to humanitarian and environmental causes.
This translates to how they run their businesses. Their products are inclusive, diverse, and environment-friendly.
Notice how it is now more common for businesses, especially those owned by Gen Z, to donate a portion of their profits to causes that the business owners support. Business processes are now also aimed at becoming more sustainable as we see a rise in cruelty-free beauty products, recycled packaging, and locally made goods. More and more, businesses also use their brands, websites, social media platforms, and general online visibility to bring attention to social issues.
Gen Z has made business more socially aware.
Check out SoundMind and see Gen Z entrepreneurs’ social awareness in action. Founded by Brian Femminella and Travis Chen, it offers a music app that aims to give music therapy and help improve users’ mental health.
Authenticity is how you sell
For this generation, authenticity is what sells a product. This means less generic, wide-reaching ads meant for anyone and everyone, and more marketing content with a specific target audience in mind as specified by market research.
This also means putting more money on influencer marketing and user-generated content marketing. Influencers are effective endorsers as they have an established relationship with their audience. Meanwhile, user-generated content created by actual users of a product or service provides authentic feedback and referrals that the modern market value more than other forms of marketing.
While Gen Z has a love of individuality, they also crave authentic human connection. Did you know that despite being digital natives, 78% of Zoomers prefer face-to-face interaction with their peers (Ryan Jenkins)? Gen Z entrepreneurs acknowledge the importance of knowing and connecting with the market and translate this into their business strategies.
Competition and collaboration work hand-in-hand
Gen Z is not a single-faceted generation.
On the one hand, they are highly individualistic because they grew up in tough times and needed to rely a lot on themselves, which they managed to do with the help of technology.
On the other hand, technology has also allowed them to keep connections through social media platforms like Facebook, Instagram, and Twitter, and other communication apps like Viber, Messenger, and Snapchat.
So, is Gen Z competitive? Absolutely. 72% of Gen Z feel competitive with people that share the same job description (Ryan Jenkins). They know the value of work, and how being the best can give them a leg up during hard times.
Is Gen Z collaborative? Yes, they also are. In the age of the internet, connections are highly valued. Building your network online is also building your audience and your market. Collaborations, especially those marketed online, make it so your followers and your collaborator’s followers combine to buy what you’re selling.
When Youtube sensation Bretman Rock and TikTok star Bella Poarch showed up in the same video sponsored by Honey, their millions of followers became privy to their personality and content, which are arguably the main products of influencers.
Is Gen Z more entrepreneurial than other generations?
Many consider Gen Z the most entrepreneurial generation yet. They have been given ambition due to their hardships, and the ability to rise above them because of the wide range of business opportunities made available to them through technology.
They’ve got that perfect mix of the right mindset, desire, and timing.
But that is not to discount credit to Boomers, Gen X, and Millennial entrepreneurs and business-inclined individuals. Perhaps they grew up in different times, but their times are not yet up and they may still prove themselves as more entrepreneurial as they embrace new technologies.
Moreover, Gen Z is so far one of the most-tracked generations because of the available technology during their time. Yet even before they were born, businesses big and small have sprouted up all over the world untracked, without which we would not have arrived at this era.
So the answer is yes, no, and maybe.
Yet if one thing’s for sure, it is that Gen Z is making waves in the market and redefining business today.
Why online business is the best according to Gen Z (…and Cafe24)
Online business is affordable, modern, innovative, accessible to both business owners and the market, and can be started in a short amount of time.
Gen Z loves it. We love it.
And with an ecommerce platform like Cafe24, your online business will be everything that’s promised. With no monthly fees, modern and innovative ecommerce tools for automated inventory management, cross-platform marketing tools, and more, as well as a worldwide audience, you’ll be starting your own online business the best way it’s done.
Sign up now and let Cafe24 help you build your dream business online.
