Why Franchising Works For This Generation of Young Entrepreneurs
In terms of economic and political power, millennials are regarded by many as the most powerful age group. But Generation Z is moving into the consumer spotlight with its own set of preferences and values. According to Pew Research Center, those in Generation Z were born after 1996. As the oldest members of this generation turned 23 during the 2020 election cycle, roughly 24 million Gen Zers had the opportunity to cast a ballot last November. This political power, which leans progressive and pro-government, will only grow stronger as more of them become old enough to vote.
While millennials came of age during the Great Recession, Generation Z was set to inherit a strong economy with low unemployment. That all came to a halt during the COVID-19 pandemic. In a March 2020 Pew Research Center survey, half of 18 to 23-year-old’s reported that they or someone in their household lost a job or took a pay cut due to the pandemic, which is significantly higher than other age groups who aren’t as represented in high-risk sectors.
Those in Generation Z are also well-educated with high college attendance, are more racially and ethnically diverse than other generations. They also don’t remember life without smartphones. Nearly 85% of Gen Zers find out about new products on social media. Not to mention, 53% of Gen Zers bought something through a mobile device in the last six months. They are also known as a very entrepreneurial generation. According to data, 62% of Gen Zers indicate they have started—or intend to start—their own business. These young entrepreneurs are poised to make a significant mark on franchising.
Gen Z and Franchising
Franchising is a realistic, attainable goal for young people that will allow them to be their own bosses and use their abilities. Young people bring positivity, high energy levels, and a willingness to learn as they are just beginning their careers. But they have several factors to consider before entering the profession. One factor is capital, which will always be important for a franchise. Whether investment comes from a family member or other business partners, it’s important for young people to know they have options. As a franchisee, they can take advantage of many low-cost franchise opportunities as well as different funding options.
Young entrepreneurs have found their own success in a wide variety of innovative areas. They have developed apps, hosted YouTube channels, and created and sold various products like soaps and food items. Gen Z and franchising may possibly be a match made in heaven. Franchising opens many more doors for this entrepreneurial generation to flourish as business owners. Gen Zers come into business ventures with three important characteristics: eco and social responsibility; a drive for technology; and the value of a work-life balance.
A Socially-Responsible Generation
Gen Zers want their work to count. They are very concerned about their environmental impact and want to see businesses do the same. There is a myriad of eco-friendly franchises available that young entrepreneurs can feel good about.
Young Entrepreneurs are Technology Driven
Technology is incredibly important to Gen Z. Data shows that 91% of them say technology would be a decisive factor for choosing a job. By investing in a franchise, these young entrepreneurs can appreciate and take advantage of the large-scale investments franchisors have already made in their brands. These include apps, complex CRM systems, digital payments, loyalty programs and more.
Gen Z Wants Work-Life Balance
According to data, almost 60% of Gen Zers want to have a good work-life balance. The COVID-19 pandemic has forced a lot of employees to work from home. As time went on, many of them decided not to go back to the office. There are so many opportunities for home-based franchises. These include opportunities in pet care, property management, mobile food trucks, and various home services.
The pandemic has been a driving force for workers to change their career path and move on to something that makes them happier. Work can get in the way of spending time with family, and people don’t want to go back to the way it was. Young people should consider becoming a franchisee as a career choice. Generation Z is shaping up to be the most entrepreneurial generation ever. All these young entrepreneurs have to do is find a business they’re passionate about and just go for it.