The business landscape is evolving rapidly, and a new generation of entrepreneurs, Gen Z is at the heart of this change. Born between 1997 and 2012, these young innovators are bringing fresh perspectives, digital fluency, and much more, influencing and reshaping industries. Yet, despite their potential, many business organisations struggle to fully understand and engage with this dynamic group.
Savanta’s Business Tracker surveyed 2,000 UK business decision-makers during July-August 2024 to find out if UK businesses are prepared to engage with and support Gen Z entrepreneurs.
Understanding the gap
A significant number (68%) of UK business decision-makers believe their business understands the needs of entrepreneurs overall, but this figure drops to 60% when it comes to understanding Gen Z entrepreneurs. This gap highlights a key area for improvement, especially considering that two-thirds (66%) of business decision-makers acknowledge the importance of engaging with young entrepreneurs.
Medium-large businesses with 250+ employees and firms in the IT, technology, and communications sector demonstrate a higher recognition of the importance of engaging with Gen Z entrepreneurs and a better understanding of this segment.
Strategic engagement is on the rise
Three in five (61%) UK businesses have adopted or plan to adopt strategies to engage with Gen Z entrepreneurs. Again, medium-large businesses (83%) and the IT, technology, and communications sector (86%) are at the forefront. These companies clearly recognise that Gen Z isn’t just the future, they are the present.
The leading engagement tactic that 54% of business are deploying or intend to deploy to connect with these young entrepreneurs is social media marketing, reflecting Gen Z’s deep integration with digital platforms. Other engagement tactics include networking events (41%) mentorship and support programmes (38%) and leveraging technological solutions such as e-commerce and social commerce (38%).
A third (34%) of UK businesses are turning to influencer partnerships and co-creation opportunities (33%) to foster more genuine connections and collaboration with these young innovators.
Interestingly, more traditional support mechanisms such as funding and investment are still lagging. Only a quarter (26%) of UK businesses are offering grants or venture capital to this new generation of entrepreneurs.
Harnessing the digital edge
Gen Z entrepreneurs are digital natives, adept at leveraging the latest technologies to innovate and disrupt traditional business models. To unlock new opportunities for growth and transformation, businesses must connect and collaborate with this generation.
Our advice? Understand their unique needs, motivations, and values. Turn to in-depth research to stay ahead of shifting preferences and adopt a holistic, digital-first engagement strategy. Stand out by involving young entrepreneurs in product development and content creation, and by providing them with funding opportunities.