Is it now or never?
In the past 20 years young entrepreneurship among 18–29-year-olds – Gen Z – has more than tripled in the UK. In contrast just 29% of boomers and 26% of Gen X have decided to start their own business. What has happened in the Gen Z generation to provoke such a change in attitude towards business and generating income?
Technological advancements and AI play a big part in helping young people start businesses. A recent study from the insurance company AXA states that “AI is playing a role in startups, with 57% of entrepreneurs checking if they’ve come up with a unique idea and 43% treating it as a trusted confidante”. This also relates back to Gen Z characteristics compared to previous generations of Boomers and Gen X. Gen Z is uniquely driven to entrepreneurship by a desire for autonomy and a rejection of cooperate rigidity. However, Boomers and Gen X value traditional career ladders and job rigidity.
Boomers and Gen X grew up without technology making them less likely to use it in becoming an entrepreneur currently. On the other hand, Gen Z are the first generation to grow up with technology. Gen Z are most likely to be the people who use social media. Jordan Schwarsenberger (CEO of management and venture company Arcade) talks about a “creator mind set.” As the manager of the hugely successful YouTube group SIDEMEN, he uses social media to take advantage of the fame. this means it mainly targets Gen Z.
AI also plays a crucial role in in helping young enraptures in starting their own business. AI acts as a co-founder for startup businesses because you can run your ideas through it and it will tell you whether it is a good fit. It also lowers traditional barriers because it removes the need for a traditional degree. For instance, you no longer need a computer science degree to build digital products, you can do it at home. It also lowers cost by being a consultant saving you form buying an actual one. This helps Gen Z people who do not have much money to start a business. AI compensates for skill gaps making the “one man business” more possible.
However, there are negative affects for Gen Z’s using AI to start their own business, including “AI slop” and loss of authenticity. Gen Z brands often represent authenticity, and the use of AI can make the brand seem hollow and generic. Generative AI can also run across copyright hazards opening the door to massive lawsuits which can ruin a young business. The overuse of AI for new entrepreneurs can weaken their communication, teamwork, and client relationship building, which are foundational to network and scaling business.
Sadly, the number of young entrepreneurs who succeed is less than 16%, largely down to the lack of business education and funding barriers. Over half of young entrepreneurs (51%) point to a lack of initial funding or capital as a primary barrier to entry. But if anyone is going to succeed in this competitive world of AI, it is Gen Z.
Reported by Guy B