Key Points
- Almost half of Gen Z’s already have more than one source of income, compared to one-third of those that run a small business.
- The pandemic has seen a huge increase in new business formations, yet it was balanced between opportunity and necessity.
- Nearly two-thirds of Americans that are in the Gen Z category have already started or will start their own business.
We envision a typical office working environment when we think of Microsoft, although a tech company. However, the Gen Z group has disrupted this sense of a traditional working environment. Specifically, entrepreneurs in this generation have decided not to go down the route of the standard workplace and turn it into a workplace hustle. Instead, they have opted out of corporate America and their own business model.
Travis Walter, who is a VP of Retail at the Microsoft Store, had this to say on the matter “The pandemic helped to fuel the imagination of how the workplace should be through it being transformed into a digital space. This has also inadvertently pushed the level of entrepreneurship as well”.
We see this already, with just under two-thirds of the Gen Z demographic thinking of their own business or even having one. The data came from WP Engine and the Center for Generational Kinetics. This makes sense as there was a huge increase, in general during the pandemic, of people starting their own businesses, 5.4 million in 2021 alone.
Hustle Culture is nothing new, but it definitely has gone through an evolution, especially in recent years. It may appear that the Gen Z workforce doesn’t look as if they’re working as hard as the Millennial generation is, but that’s further from the truth.
Instead, Gen Z people work hard on their flexible schedules and time management skills, working through their vacations yet still with a focus on a better work-life balance. Almost half already have more than one side hustle, which is more than the 34% of people that are business owners but not Gen Z.
This information came from a recent survey done by Microsoft. Those that were asked were around 1,000 small business owners (which was further classified and refined to companies with less than 25 employees). In addition, social media played a role, such as those who use TikTok as part of their business typically have more than one side hustle as well, versus those who don’t use TikTok.
“Let people work in their own way, and you will see them at their best,” said Walter.
Microsoft data also says that nearly all Gen Z people work unconventional hours and over 80% work on vacation. However, not even two-thirds of small non-gen z business owners work on their holiday.
A question heard more often is “What should I do?” as the VP of Entrepreneurship from the Ewing Marion Kauffman Foundation said. “That’s how they’re thinking,” he said, referencing Gen Z.
Gaskin also mentioned we’re in a part of rediscovery where many people reevaluate their professional and personal goals. Some have felt unfulfilled in their positions, while others simply felt unmotivated. The pandemic helped to give people time for this reflection as well as an opportunity for many. It’s that balance of opportunity and the fact that people had no other choice but to innovate their professional careers.
With the rate of fresh entrepreneurs already growing and hitting a huge spike during the pandemic, the data makes sense. In fact, Gaskin went on to say that “Companies younger than five years of age are the ones creating the most amount of new jobs”
The reason behind this with Gen-Z is that they believe that if they go down the entrepreneurial route versus the corporate route, they will be able to retire sooner. Nearly two-thirds of these entrepreneurs believe that. However, only 40% of non-Gen Z small business owners feel the same. Overall the small business community still believes that putting monies away into retirement is still a bit of a challenge, as most put their funds back into the business to let it grow. This makes some entrepreneurs concerned about their financial health.
What a Gen Z entrepreneur looks like
Ritwik Pavan is no stranger to the entrepreneurial world and already has a few businesses under his belt. “It started in high school with a passion and drive to build out solutions that solve problems. “ said Pavan.
He has worked in several areas in the tech industry since college and learned and understood urban mobility. However, what led him to success with his two cofounders was launching Vade back in 2018, which has a practical application of showing real-time parking information and consequently helped reduce traffic and carbon emissions. Since then, he has launched several other relevant companies and products.
