Generation next?

Today we report on some very interesting research by Lifelounge Group, an independent media and marketing firm that specialises in researching Generation Y.

According to Lifelounge CEO, Dion Appel, Gen Y is going back-to-basics, forgetting about shopping and parties and instead getting nostalgic for dinner parties, home-made arts and crafts and music from the 1970s.

Apparently this is because their confidence has been badly shaken by the global financial crisis – their parents are suddenly a lot less willing to hand over cash and some of their close friends have lost their jobs.

Appel says that when a Gen Y does lose their job, they consider four options: getting another job, going back to study, heading off on a trip or starting their own business.

While Appel stresses that launching a business isn’t necessarily the first option for Gen Y, it has suddenly become a lot more appealing. Most Gen Ys are well-educated and reasonably skilled and as Appel says, they are rarely short of self-confidence.

The fact that over half still live with their parents means many are willing to take financial risks, safe in the knowledge that mum and dad will still be there if all goes pear shaped.

But most of all, Appel says, starting a business is seen as way of regaining control. “It’s a way of getting power over their lives back in their hands.”

It remains to be seen whether this trend will actually be borne out, but it is potentially exciting.

It appears the GFC has forced Gen Y to reassess their philosophies towards life, money, relationships and work. While they are often criticised for being overly ambitious, unwilling to take on responsibility and disloyal, most of these critics would also admit Gen Y is smart, energetic, creative and well-educated.

Australia needed something to spur its next generation of entrepreneurs – perhaps this downturn has provided the perfect spark.