How often do we hear or read that the younger generations want to have their own business? Are we birthing generations of entrepreneurs? Where does their entrepreneurial spirit come from, and how do the generations tend to differ?
Earlier this month I spoke on a program for the Family Firm Institute on how entrepreneurs of different generations differ from each other. Actually what we discussed was more the “entrepreneurial spirit” rather than a strict definition of “entrepreneur.”
In each generation we have had entrepreneurs whose greatest goal was making a lot of money as well as business owners who chose that path through desire for freedom from a “boss” or from necessity. The goal of the two latter types is typically a satisfying lifestyle rather than to become extremely wealthy by laser focus on the business and then selling it and going on to the next thing.
My talk was in the context of family businesses, but the distinctions translate pretty well to any multi-generational firm.
Generational Differences In Mindset And Approach
Here’s an example from a now second generation business with the founder still in place – a family business - but in business approaches it could just as well be a founder with an unrelated protégé designated for the top slot
Our communities and the world need some entrepreneurs who are driven to succeed with disruptive ideas - perhaps at almost all personal costs. We also need ones who are in it for the long-term, those who start their own businesses for the anticipated freedom, “intrapreneurs” working in companies they don’t control, and employees willing to take “ownership” psychologically and behaviorally to assure the organization achieves and maintains success. The “entrepreneurs” of each generation may approach it differently and be motivated by different things. For the best results, we need to understand them and help them make the enterprise thrive.
- Decision-making style: His is gut instinct vs. her dependence on data analysis and process.
- Funding: He and his generation tended to use their own capital vs. younger generations using other sources of funds, partners, even crowdfunding
- Comfortable means and styles of communication: Traditionalist father is more comfortable with in person and phone communication, while the daughter communicates widely with text, email, Skype and other electronic means.
- Local vs. global perspective: While the older generation father was comfortable with a lot of local projects the daughter, analyzing competitive opportunities, is focusing on diverse locations and generally takes a global outlook.
What are your observations about the different generations and entrepreneurial spirit or traits? Please send your thoughts to pwhaserot@pdcounsel.com or comment on the Cross-Generational Conversation group on LinkedIn.
Phyllis
© Phyllis Weiss Haserot, 2014. All rights reserved.
* The generational chronology for easy reference: Generations are defined by the similar formative influences – social, cultural, political, economic – that existed as the individuals of particular birth cohorts were in adolescence or early childhood. Given that premise, the age breakdowns for each of the four generations currently in the workplace are approximately:
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