Written by Kairy Castro-Barrios

My generation, Gen Z, is quickly becoming known as the most entrepreneurial generation.  With some of us already starting a business that grew out of a hobby, we all have an inner-entrepreneurial self-allowing us to embrace our strengths. That’s not bad when you consider the oldest of us is only 25 years old! At the same time, we have strong ethics and an awareness of ethical issues. We’re not afraid to stand up for what we believe in. We’ve successfully married entrepreneurship with our core ethics, and this post will explore the relationship between the two.

What is an Entrepreneur?

An entrepreneur is an individual who is willing to take financial risks to make a profit. Let’s be honest, anyone can be an entrepreneur, but those who take the risk are few. By accepting, you are willing to accept the risk in both your business and life.  An entrepreneur looks for ideas by observing what everyone does not do and figuring out how to approach the risk to make money. You could become an entrepreneur by selling something you’re good at. For example, your hobby might be crochet – an entrepreneur will see a path and take action to turn this hobby into money! All it takes is two things: risk tolerance and ambition.

Once you take the risk to step forward in your business journey to be an entrepreneur, ambition pushes you towards the goal.  Your motivation and ambition turn your hunger for success into an actionable plan. But you must remember that success is not something you see overnight – it takes time. The longer you dedicate yourself to an entrepreneurial goal, the more risk you may take on, but the greater the potential rewards. It might be all worth it towards the end.

The Difference Between an Entrepreneur and an Innovator

Innovators are people who make significant changes to an existing product. They came up with a new idea to improve a product or process. A well-known name in the business world is Elon Musk, the owner of Tesla. Elon Musk is an innovator. Cars existed before the Tesla Model 2008 roadster, but the way Elon Musk created the Tesla surpassed every consumer’s expectation. Tesla built a car that needs to be charged at a destination charging station instead of the regular gas station. The popular Tesla company manufactures electric cars, compared to other car companies that produce cars based on the internal combustion engine. Tesla highlights an innovative product that modernized electric cars and brought them to the forefront of the automotive industry.

On the other hand, entrepreneurs take risks to start a business. Entrepreneurs aren’t necessarily innovators – that distinction depends on what their business does. You can be an innovator yourself if you can improve products/processes, making them all better off than before.

The Characteristics which Define an Entrepreneur

There are many! Hard-working, ambitious, trustworthy, and of course, risk-taking. The entrepreneurial mindset contains tools that entrepreneurs can develop and use when needed. The entrepreneurial mindset, also referred to as the growth mindset, refers to the characteristics, attitudes, and skills which allow individuals to pursue opportunities, overcome obstacles, and learn how to implement strategies to thrive in competitive environments.,

Detail–oriented characteristics allow a person to notice minor errors which others might miss, work efficiently, and edit/correct their mistakes. Communication and collaboration allow people to share their ideas, express themselves clearly, and engage in productive debate. Most importantly, communication and collaboration provide tools to respond effectively to constructive criticism. Initiative allows you to actively look for opportunities, since it won’t happen the other way around. As you grow, the comfort with risk means open-mindedness; you won’t give up even if there are obstacles. Evaluate cost and benefits in situations: will it help you? Or hurt you? Other components include flexibility and adaptability, receiving feedback, planning for possible obstacles, and always having a positive mindset.  When combining all these characteristics, a synergy mindset is created, stronger than before.

This growth mindset requires believing that one’s vision and goals are attainable. Never forget they are.

How do Ethics Contribute to the Growth of an Entrepreneur? –

Ethics are a moral code between right and wrong: moral principles of values that define and direct us to what we would consider the “right” decision. We use ethics in our everyday life, and each decision we make includes a principle of morality. In business, ethics apply a moral code to business activities.

• Respect demonstrates that clients, employees, and vendors are all valued.
• Business integrity is doing what is right simply because it is the right thing to do in business practice. For example, being honest and open in a business dealing demonstrates integrity.
• Commitment to quality focuses on providing the best available product and service to meet the needs and wants of the consumers.

Many businesses stand by the principle of morals and let their consumers know about them too. TOMS, a shoe company, donates a new pair of shoes to a child in need for every shoe purchased. Considered a transparent company with their consumers, TOMS gives back to communities in need by donating shoes or helping fund access to mental health resources for the millions of people who need them. Companies that stand by moral principles are often recognized as they are seen differently than others because of their impact. Overall, the contribution of ethics in entrepreneurship can make the company stand out from others because of the significance of these ethics.

How Can Ethical Marketing Differ from Simple Advertising?

Ethical marketing is a philosophy focusing on how marketing a company’s product can benefit social and environmental causes. Ethical marketing ensures advertisements are honest and trustworthy, allowing consumers to know the company’s goal when purchasing a product and the need served with each purchase. The difference between ethical marketing and simple advertisement is that ethical marketing allows companies to be transparent about their products and costs, promoting their efforts on global issues. Simple advertisements promote a company’s product without promoting fair trade, good working conditions, no child labor/forced labor, and more. In simple advertising, the focus is only on the company’s brand and value.

For entrepreneurs that use ethical marketing in a business, the company is not just advertising their products but also being transparent with consumers about how each purchase can impact others’ lives. Many in Generation Z prefer ethical marketing, as we see how our purchases can help social/environmental issues. By using ethical marketing, we help our business become known while also standing up for what we believe in.

As rising entrepreneurs, Gen Z appreciates the feedback and tips of the experienced generation when it comes to helping improve our business ways. From risk to ambitions to our ethical characteristics, all shape us for who we are. Please comment and let me know what you think!

Written by Kairy Castro-Barrios

Kairy is a student in Montgomery County Public School’s Summer RISE program.