Over a third (36%) of Generation Z postpones the intention to open a business – this is one of the conclusions that emerge from the third edition of the “Insights PulseZ” study. The study captures in a snapshot the overall picture of the members of Generation Z in 2022, with their needs, desires and barriers in building an entrepreneurial career.
Half of the young Romanians who have considered investing in their own business remain motivated and eager, despite the lack of financial resources, which is also the main obstacle identified by the third edition of the study conducted on 1,200 youngsters from Romania born between 1995 and 2010.
“The impact that the lack of financial resources has on the entrepreneurial spirit of the young generation is important, but it is not new. The economic environment is strongly affected and access to resources is limited even more, compared to previous years. An important signal is, in my opinion, the perception related to the lack of knowledge to help them take the first steps to start their own business, as well as the lack of support from mentors. There is a vast field of action here and we must expand our efforts through the national entrepreneurial program with the support of the business environment,” said Dragos Petrescu, President of Romanian Business Leaders and Project Leader of Insights and I Want to be an Entrepreneur.
The relaxation of restrictions changes the optics regarding sustainability
At the time of making a purchase, more than half of the participants in the study say that they attach importance and follow that the brand they have in mind is sustainable, but the percentage is decreasing compared to last year, 53% compared to 61% in 2021.
“The present study reveals for Romania a generation eager to leave its mark on society, attentive to values such as sustainability, looking for a career where what matters first is what they do and only then the salary package. Other conclusions drawn are: the lack of intrinsic motivation regarding the job, the need for mentors and the structure to tackle a long-term project. I see in these results of the study an alarm signal that today’s managers should pay attention to and come to welcome the new generations with vision, inspiration and directions to make the work of young people relevant and full of meaning”, declared Dan Schipor , Business Advisory Partner for BDO Romania.
Regarding indirect sustainable behaviors, the share of those who use public transport more often than the car (40%) is almost at the same level as last year, instead those who walk (55%) or choose to ride a bicycle or scooter short distances (17%) dropped considerably from 70% and 25% respectively.
Purchase intentions are increasing for 16% of respondents
Half of the young people maintain or increase the level of expenses made compared to last year, the most important increase in the allocated budgets being reported for food ordered with delivery (17%). Significant increases, of 16% and 15%, were registered for electronics, IT&C products and gadgets and respectively fashion products, both categories having almost half (47%) of respondents who maintained the same level.
“The contrast between the desire to reduce expenses and the significant increase in expenses appears primarily due to the heightened inflation that we all feel at the level of society, including at the level of young people. In my opinion, the current economic situation is what blocks the desire of young people to immediately start their own business, and a third of them prefer to postpone this decision for later, when the conditions could be more favorable”, said Monica Musca, entrepreneur, Managing Partner First PR Agency.
If purchase intentions are increasing for 16% of respondents, at the level of intentions to start their own business, this year’s edition of the study shows that the number of young people who do not intend or are not yet decided to start a business is stagnating. More than a third of the respondents say that they intend to open their own business, but not in the next year.
78% mention the lack of financial resources as the main obstacle for young entrepreneurs
The main barriers to opening a business are: lack of financial resources, mentioned by 78% of respondents, lack of training to start a business (66%), lack of mentors (64%) and lack of technical knowledge (56%). Girls feel these barriers more strongly.
The lack of financial resources for investments and the general economic climate directed the change of attitude of the young generation towards money. More young people want to save money (57% compared to 51% in 2021) and earn more (53% compared to 48%), the most important change occurring in the increased attention paid to expenses, 58% this year compared to 45 % in the previous year, but time and education are still needed to put them into practice.
The main motivation of the young people of Generation Z for a business is given by the desire to come with a contribution (30%), followed in fairly equal weights by the fact that they can do what they like (20%) and by the possibility of earning more of a salary (19%). Most of them are thinking of focusing on the area of food preparation and sales services, followed by those who aim at real estate. IT (22%) occupies an important place and gratifying is the option for art and culture (20%), a field in which girls are the majority.