A new report by EY highlights the significant influence of Generation Z, despite their relatively small proportion of the U.S. population. According to WealthManagement.com, the study, "How Can Understanding the Influence of Gen Z Today Empower Your Tomorrow?" reveals that while Gen Z constitutes only 14 percent of the population, their impact on societal and economic trends is substantial.

Gen Z's approach to work and corporate culture differs markedly from that of previous generations. They prioritize job satisfaction over monetary gain and demand a healthy work-life balance. Despite their focus on enjoying work, they also are highly concerned about financial security, with 52% worrying about having enough money. Interestingly, Gen Z is less optimistic about becoming wealthy compared to Millennials at a similar age.

WealthManagement.com reports that Gen Z shows a greater appetite for risk and begins investing earlier. They prefer diversified portfolios, including alternative assets like private equity, real estate, and cryptocurrency. Sustainable investing is also a high priority for them. These attitudes present challenges for intergenerational succession in family businesses, as younger members may need convincing that the family business aligns with their values and work-life balance preferences.

To bridge this gap, current family business leaders might consider fostering a collaborative environment rather than adhering to traditional hierarchical structures. Leaders can also support Gen Z's desire for impact through socially responsible investing, ensuring the youngest family members feel included in decision-making processes.

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