How Many Gen Z Are There in 2023? A Small Business Expert‘s In-Depth Analysis

As a consultant dedicated to helping entrepreneurs succeed, I‘m often asked about connecting with Generation Z. The oldest Gen Zers are now young adults, and their influence is growing exponentially. Understanding this massive, diverse generation is crucial for any business owner. But first, let‘s explore the core question: how many Gen Z are there?

The Gen Z Population Boom

Gen Z refers to anyone born between 1997 and 2012. Many factors have contributed to the rapid growth of this generation:

  • Longevity improvements have allowed people to live longer and have children later, expanding the birth rate
  • Immigration has continued increasing the population, especially among Hispanic and Asian groups
  • Digital revolution made starting families easier for Millennials, resulting in a "baby boom echo"

Let‘s look at some key stats:

  • Globally, there are 2.47 billion Gen Zers as of 2020. This massive generation now represents 32% of the total world population.
  • In the US, there are around 68.6 million Gen Zers, making up over 20% of Americans.

And Gen Z isn‘t done growing. By 2025, projections estimate:

  • Up to 2.56 billion Gen Zers worldwide
  • Around 72 million in the United States

Driving this growth is Gen Z‘s diversity…

The Most Diverse Generation

Gen Z represents a wide spectrum of ethnicities, races, and cultural backgrounds.

Globally, here is the Gen Z breakdown:

  • 51% White
  • 25% Hispanic/Latino
  • 15% Black
  • 6% Asian
  • 5% Multiracial/Other

In the US, diversity is even more pronounced:

  • 48% White
  • 25% Hispanic/Latino
  • 14% Black
  • 5% Asian
  • 8% Multiracial/Other

This diversity stems from several trends:

  • Increasing interracial marriages
  • Immigration rising since the 1970s
  • Lower birth rates among white populations

For entrepreneurs, this diversity represents an opportunity to reach new demographics. But effectively marketing to Gen Z requires understanding their core values…

What Motivates Generation Z

While diverse, Gen Z does share many common hopes, passions, and concerns.

1. Social Justice

  • 36% participated in activism around causes like Black Lives Matter and immigration reform.
  • 83% believe companies should address society‘s problems.

2. Mental Health

  • Over 1/3 have sought professional support for conditions like anxiety and depression.
  • They are vocal about reducing stigma and increasing access to mental healthcare.

3. Financial Security

  • Many came of age during the Great Recession and are worried about student debt and jobs.
  • They seek education and skills today that will support careers tomorrow.

4. Work-Life Balance

  • 63% prefer a hybrid remote/in-office work model.
  • Boundaries between work and personal life are important to them.

This gives a high-level view. But how does Gen Z‘s size and mindset directly impact entrepreneurs?

Why Businesses Should Pay Attention

Here are three key reasons small business owners need to tune into Generation Z:

1. Sheer Buying Power

With over 2 billion members globally, Gen Z represents a massive consumer force. They already account for up to $150 billion per year in spending. And as more Gen Zers enter the workforce, their economic clout will only grow.

2. Influencing Older Generations

Gen Z‘s technological savvy gives them an outsized influence on those around them. Over 70% of parents say their Gen Z children impact their buying decisions. Gen Zers are driving everything from grocery purchases to car buying.

3. The Next Wave of Entrepreneurs

By 2030, Gen Z will represent over 25% of America‘s workforce. And studies show over 70% of Gen Zers hope to run their own business one day. Embracing this entrepreneurial spirit can lead to partnerships and innovations.

In summary, businesses cannot afford to ignore the Gen Z generation. Their economic power, social influence, and entrepreneurial mindset make them a crucial engine of growth. Learning to effectively reach and motivate Gen Z today is an investment in any company‘s future success.

As a consultant who has helped dozens of startups market to Gen Z, I welcome your questions! Reach out anytime to discuss how we can build bridges between your business and this emerging generation.