Not long ago, people in their early twenties could easily qualify for mortgages shortly after graduating from high school. Today, they are often looked upon by their elders as post-adolescents with short attention spans and a sense of unearned entitlement.
Colloquially, we’re known as Generation Z (those of us born roughly between 1995 and 2012) and our shared life experiences have included a great recession, the rise of smartphones and social media, climate change, and most recently a global pandemic.
We’ve faced a great deal of turmoil in our relatively short lives, all imposed upon us by forces outside of our control. As a result, research has shown that we crave control, meaning that what older generations perceive as entitlement is really more a desire to have ownership over our futures. This desire helps explain why ours is considered to be the most entrepreneurial generation to date.
It’s frustrating, therefore, that we’re not being given the credit we deserve, both figuratively and literally. As budding entrepreneurs, our passions and creativity can only take us so far, and to go the distance, the harsh reality is that we need money. Yet, many lenders are not only reluctant to extend loans to younger Canadians: They’re borderline condescending.
I have been on the receiving end of this archaic thinking. I have been baking since I was two years old, and I began selling my baked goods as a side hustle while in university. After earning my undergraduate degree, I pursued a diploma in Baking and Pastry Arts Management at George Brown College, and opened my own business, DIBS Scratch Bakery, immediately after. I even placed as a Quarter Finalist on CBC’s The Great Canadian Baking Show.
So to recap: I have a prestigious diploma in my chosen field, I’ve been successfully earning revenue selling my product for years (using technology to automate my business), and I even have some celebrity to boost my brand. Yet when I was seeking capital to finance my first brick-and-mortar shop, I was ghosted when attempting to go it alone. When I brought along my mother for moral support, the lenders spoke only to her, ignoring me completely. My talents and success were ignored, superseded by my age – something, again, over which I have no control.
This might explain why so many Gen Z entrepreneurs are bootstrapping when it comes to their businesses. A recent study from technology and financial services company Square found that 47% of us used our personal savings to fund our businesses. Only 14% secured funding from a traditional lender. But imagine if, rather than being treated as petulant children, Gen Z entrepreneurs were treated as the talented, passionate, capable people that we truly are.
Consider the critical importance of entrepreneurship on the Canadian economy: According to Statistics Canada, in 2021, small businesses made up 98.1% of all employer businesses in Canada, and employed 10.3 million individuals in Canada, which is almost two-thirds (63.8%) of the total labour force. In addition to the innovation we provide and the taxes we pay, entrepreneurs create more than 150,000 new jobs per year.
Our contributions are essential, but our success is far from inevitable. Given the importance of what we bring to the table, it’s time for the financial sector to stop underestimating Gen Z. We are ambitious, motivated, and eager to put our passions to work.
We’re also overwhelmingly optimistic; the Square report found that well over half of Gen Z entrepreneurs (56%) believe that we have better economic opportunities than our previous generations. But these opportunities come with a desire to chart our own courses, rather than follow the traditional 9 to 5 path of our parents and grandparents.
Fortunately, there are some signs that the establishment is beginning to take us more seriously. Some forward-thinking fintechs, for example, are catching on and devising smart and easy solutions to help support our entrepreneurial spirit. But there is still a great deal more progress to be made.
We have the talent. We have the passion. We have ambition. Now we deserve some credit.
Jasmine Linton is a Gen Z entrepreneur and founder of DIBS Scratch Bakery in Richmond Hill, Ontario.
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