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Gen Z Founders: Closer to technology and with a thirst for a better world, they are more than meets the eye...




You’ve probably heard of Mark Zuckerberg. He’s recently featured on the news again for an impressive PR stunt:



(Zuckerberg, 2024)


A lesser known quote of his is:

"Young people are just smarter. Why are most chess masters under 30? I don't know. Young people just have simpler lives. We may not own a car. We may not have family. Simplicity in life allows you to focus on what's important."

Mark Zuckerberg's words ring true for the new wave of Gen Z founders who are taking the business world by storm. Just like their VC counterparts, these young entrepreneurs are leveraging their digital savvy and passion for change to disrupt industries and create value in unprecedented ways.


Born between 1997 and 2010, Gen Z is the most entrepreneurial generation yet. Over 62% of Gen Z have started or intend to start their own company, driven by a deep integration with technology and a burning desire to make a positive impact on the world.


But what sets Gen Z founders apart from their predecessors? How are they reshaping the startup landscape and redefining the relationship between founders and investors?


In this article, we'll explore the key trends and characteristics that define Gen Z entrepreneurs, drawing on insights from industry experts like Cecil Adjalo, co-founder and COO of Foundervine, and a wealth of data from a recent survey of UK entrepreneurs.


From their tech-savvy approach to business to their unwavering commitment to social responsibility, we'll discover how Gen Z is bringing a fresh perspective to the startup world and why investors are increasingly turning to this generation for the next big thing.


Written by: Andrew Mazalkov

 

A DEEP INTEGRATION WITH TECHNOLOGY


Gen Z's deep integration with technology is fuelling a new wave of innovative business models. As digital natives, this generation has never known a world without the internet, and their comfort with technology is unparalleled. Adjalo notes that "GenZ has never known a world without the internet. They are extremely comfortable with technology, expecting everything to be online and accessible via apps."


This tech-savvy approach is evident in the rise of influencer-driven businesses, which leverage Gen Z's digital expertise to create new revenue streams. Adjalo explains, "Many young people want to become micro-influencers, seeking products and services that can help them achieve this goal. The influencer business model is disrupting the marketing space, with a significant focus on leveraging social influence to generate revenue."


(Connectd, 2024)


The chart above, from a recent survey by Connectd, highlights how Gen Z entrepreneurs value an investor's network and connections above all else, aside from cash investment. This emphasis on building relationships and leveraging social capital is a key driver of the influencer economy.

As we continue to explore the unique characteristics of Gen Z founders, it's clear that their tech-savvy approach and focus on digital platforms will play a significant role in shaping the future of entrepreneurship.





AN EVEN MORE MORALLY DRIVEN GENERATION


For Gen Z founders, making a difference is just as important as making a profit. This generation is characterised by a strong commitment to ethical, social, and environmental causes, and they're bringing this mindset to the startup world.


(Connectd, 2024)


The chart above, again from the Connectd survey, illustrates the stark contrast between Gen Z entrepreneurs and their older counterparts when it comes to prioritising impact over profit.

Josh Tulloch, founder of The Generalist Company, embodies this impact-driven approach. In a recent interview, he explained, "I started The Generalist Company because I saw an opportunity to help startups and new ventures succeed by providing the support they need in the early stages. It's not just about making money; it's about making a real difference in the business world."


This commitment to positive impact extends to Gen Z's relationships with investors as well. A staggering 96% of Gen Z founders would turn down investment from someone who wasn't aligned with their moral and ethical principles, according to the Connectd survey.


As Tulloch puts it, "For me, it's crucial that any investor I work with shares my values and vision for the company. It's not just about the money; it's about building something meaningful together." Adjalo echoes this too, saying,

"They (Gen Z) prioritise impact over profit, and their consumer behaviour reflects strong social values. For instance, many view their spending as a vote for a company aligned with their values. I see lots of shunning of bigger, established players with terrible histories in favour of smaller brands doing amazing amounts of good for society and the environment.

Gen Z's unwavering dedication to making a positive impact is set to reshape the startup landscape, as more and more young entrepreneurs prioritise purpose alongside profit.





As digital natives, Gen Z entrepreneurs have grown up in a world where technology is seamlessly integrated into every aspect of their lives. They possess an innate understanding of the digital landscape and are adept at leveraging technology to build scalable, global enterprises.


The "Pioneering Gen Z Entrepreneurs" report from Bertelsmann Stiftung also underscores the importance of digital technology for this generation. It notes that "Gen Z favors a dynamic and hands-on learning style, often emphasizing quick and practical experiences. To meet this demand, we need to integrate entrepreneurial education into school curricula and thereby nurture an innovative and proactive entrepreneurial mindset from an early age."

By embracing their digital expertise and seeking out investors who can support them in this arena, Gen Z entrepreneurs are poised to create the scalable, impactful businesses of the future.



BUT THERE ARE CHALLENGES FOR THIS GENERATION…


(Bertelsmann Stiftung, 2023)


Despite their digital prowess and impact-driven approach, Gen Z entrepreneurs still face significant hurdles on their startup journey. As the chart above illustrates, lack of funding, bureaucratic hurdles, and a lack of entrepreneurial knowledge and experience are among the most significant obstacles reported by young founders. Adjalo says: "The diversity of GenZ founders can drive significant positive change in the London startup ecosystem, but support is crucial to ensure inclusivity. GenZ in the UK is more ethnically diverse than previous generations. London, a particularly diverse city, holds substantial power and startup opportunities. However, there is a risk that only GenZ individuals with financial privilege can start businesses, as they have access to networks of wealthy backers." Furthermore, "To truly leverage the diverse talent of GenZ, it's important to provide equitable support. Initiatives run by companies like Foundervine, Colorintech, Onetech, Startup Discovery School, Nesta, Tech Nation and many others are already working towards this goal, but further backing from large corporates and the government is necessary"


However, as Tulloch notes, Gen Z's resilience and adaptability are key to overcoming these challenges. "Being a young entrepreneur isn't easy, but our generation has a unique ability to pivot and persevere in the face of adversity. We're not afraid to ask for help, learn from our mistakes, and keep pushing forward."




This sentiment is echoed in the "Pioneering Gen Z Entrepreneurs" report, which highlights the importance of supportive ecosystems and mentorship for young founders. "Communities focusing on young entrepreneurs such as the Sigma Squared Society are key support networks. Moreover, highlighting role models within the young entrepreneurs community could foster peer-to-peer learning and introducing new media formats could positively influence the image of entrepreneurship."


As we look to the future, it's clear that Gen Z entrepreneurs will continue to reshape the startup landscape with their innovative, impact-driven approach. By leveraging their digital expertise, seeking out supportive investors and mentors, and remaining resilient in the face of challenges, this generation of founders is poised to create the world-changing businesses of tomorrow.


As Gen Z entrepreneurs continue to make their mark on the business world, their impact-driven approach, digital expertise, and resilience in the face of challenges set them apart as a force to be reckoned with. Adjalo sums it up well: 


"Gen Z is a generation that is not afraid to challenge the status quo and use their entrepreneurial spirit to drive positive change. By leveraging technology, building supportive networks, and staying true to their values, these young founders are creating businesses that not only generate profits but also make a meaningful difference in the world."


The rise of Gen Z entrepreneurship represents a shift in the startup landscape, one that prioritises purpose, sustainability, and innovation. As more and more young people embrace entrepreneurship as a means to create value and drive progress, it's clear that the future of business is in good hands. With their unique perspectives, skills, and passions, Gen Z founders are poised to reshape industries, disrupt markets, and create a better world for all.

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