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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

• Gen Xers (often children of Traditionalists or older Boomers) frequently want to do things their own way and not the way parents do or did. They may not want to use the same advisers as parents. They want to identify their own support circle loyal to them, their projects and modus operandi.
• Gen Y/Millennials may be more willing to get advice from parents and other seasoned executives and learn from them. But they will push for more and newer technology, new products that parents and older generations may not understand and using more social media for marketing and customer relations. They may also have different ideas about funding and philanthropy.
• Gen Yers may tend to be more entrepreneurial than the older half of Gen Xers and to welcome advice from Boomers. (Remember the dot-com boom when so many start-ups failed because there were few “grey hairs”? who understood management and the need for profits?
• Gen X and Gen Y frequently have different approaches from each other. Gen Y tends to be more optimistic and collaborative but impatient and may not want to wait to move up till after Gen X opens a slot.
• Early indications are that Gen Zers (the current high schoolers and younger) in large numbers want to have their own business some day. They are less collaborative than Gen Yers and like working on their own (like Gen Xers), though they are constantly connected to the Internet and friends.
• Gen Yers have more global perspectives and are comfortable working remotely with employees and on deals
• Gen Y more than older generations will be more vocal about wanting “meaningful“ work and being given the “big picture” vision. (Of course, everyone wants meaningful work.)
• Gen Y will demand new technology, even for old purposes.
• Gen X and Y, who resent long hours in an office, as owners may finally confront facetime issues and enable widespread flexibility.

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

• A real estate business – Dad and founder is a Traditionalist; daughter and president is a Gen X.

• 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.

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.

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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