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Like almost every generation, Gen Zers tend to think of themselves as a separate race, and are very different from their elders. The jury is still out on how different they are, but at least he’s true in one respect. Gen Z seems to be far more entrepreneurial than other generations, but many of the business challenges are the same.
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According to a survey conducted by GOBankingRates, more than half (51%) of 18-24 year olds aim to become an entrepreneur, and 14% are already trying to become an entrepreneur, more than any other age group. It is a percentage.
Apple Store’s 2022 survey revealed even higher numbers. As a result, more than 6 in 10 Gen Zers say they have started or plan to start their own business, making Gen Z the world’s most entrepreneurial generation. I found out that it is likely to happen.
The reasons why so many people choose to start a business range from wanting to prepare for early retirement to investing their profits in social welfare.
Perhaps most importantly, Gen Z is the first generation to grow up with social media from an early age. This means you have the tools and network connectivity to start your business or side hustle on your tablet. Some even use social media itself as a springboard to fame and fortune as influencers.
But for most Gen Z entrepreneurs, turning their business into a success story isn’t easy. He shares four of the biggest challenges they face.
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1. Lack of resources
A recent iStock survey of 500 American executives found that the biggest challenge facing Gen Z entrepreneurs is a lack of resources such as money, talent, and time. . Almost two-thirds (62%) said this was their biggest challenge.
Lack of resources is nothing new and has plagued young entrepreneurs for centuries. Previously, the main way to overcome this challenge was to seek financing from banks, investors, family and friends, or other lenders. These are still optional. But Gen Z has another option that previous generations didn’t have. It’s crowdfunding, which allows you to quickly raise large sums of money for your new business.
2. Formulation of business plan
Young entrepreneurs often have innovative ideas for products and services that have the potential to be a hit with consumers. However, many people lack the basic skills to create a business plan. As stated on the blog of legal services and consulting firm Wolters Kluwer, a business plan is a “blueprint” that establishes a company’s identity, offerings, brand, and map to success. Without this, it will be difficult to attract investors and customers and move through the various stages of growth.
The best solution is to network with experienced business professionals, consultants, and other entrepreneurs and tap into their expertise to guide you in creating your business plan. Some business incubators offer these services free of charge, but others may require you to invest some of your funds in hiring professionals.
3. Data security
Cybercrime has become a big problem in the age of digital commerce, but in previous generations, we didn’t have to worry about it as much. Fighting hackers, data breaches, and other threats should be a top priority for Gen Z entrepreneurs. This means not only taking appropriate security measures, but also adopting the latest technology as cybercriminals evolve. This also applies to small startups whose business is built solely around apps.
4. Improved visibility
In an iStock study, nearly half of Gen Z entrepreneurs say one of their biggest challenges is “building awareness and generating quality leads.” This essentially means making your brand known to more people and developing a larger network of potential customers.
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Unless you have the backing of a prominent partner or investor, you’ll start out as an unknown and build your brand from there. This is especially problematic for Gen Z entrepreneurs because the field is crowded with other Gen Z entrepreneurs. Again, the best solution comes down to networking. Look for a marketing/branding partner with expertise in your field and the tools to get the word out.
GOBankingRates Details
This article originally appeared on GOBankingRates.com: Small Business: 4 Challenges Gen Z Entrepreneurs Face and How to Solve Them
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