Most small and medium -sized leaders in Brazil are optimistic and are intended to expand their business in 2025. But the way generation X (born from 1965 to 1980) and Y (born between 1981 and 1996) faces challenges in the command of business changes a little, as shown by Itaú Enterprises together with the locomotive institute.
The ‘Owner Head’ study indicates that 62% of generation X entrepreneurs are more optimistic and prepared to grow, while 54% of generation Y, the so -called ‘millenials’, think the same. Those who are between 41 and 60 years old have a greater tendency to make their decisions of at least one area of their companies alone.
Incidentally, in general, almost all entrepreneurs who participated in the research have a multitasking profile, participating directly not only in management, but also in the operational execution of one or more areas. However, generation X leaders have a greater tendency to make decisions of one or more areas alone, reaching 41% of respondents, compared to 33% of millenials.
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Leaders 30 to 40 years are the most hopeful (78%) and excited (72%) compared to their business. Among entrepreneurs aged 41 to 60 years, feelings of hope is pointed by 73%, and the excitement by 66% of respondents.
Regardless of age, everyone has in common the challenge of being able to deal with the external and competitive scenario, as well as the time to focus on innovation and financial management, as they are constantly trying to ‘balance the dishes to let nothing fall’.
Just for this reason, although interested, they cannot seek specialization or help from support networks – which can restrict their growth.
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“The results reflect the worldview and experiences of each of the generations, but to understand the differences between them is critical to creating a more collaborative and productive environment,” says Itaú Unibanco Strategy Director Antonio Rafael Souza.
It emphasizes, however, that, despite the differences and all the challenges faced, the two generations complement each other and bring valuable contributions to the business world.
“It is important that these characteristics are taken into account and these entrepreneurs have specialized support, so that the prospect of GMES growth is even greater, more assertive and sustainable,” said the executive.
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The survey listened to 1001 men and women leaders of small and medium -sized companies with annual revenues between R $ 360,000 and R $ 50 million, in the five regions of Brazil, between July 4 and August 16, 2024.
The study also presented an overview of the needs and challenges faced by SMEs, aiming to throw light to such an important segment for the economy, as they account for 30% of GDP and generate 50% of active jobs, potentially impacting more than 80 million Brazilians, according to Sebrae data.
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Challenges for the business
Among the challenges surveyed, about 90% of the two generations report some or a lot of difficulty dealing with external scenario, growth and innovation, and financial management.
When asked what themes they consider to be very difficult, the differences become more noticeable: 42% of the millenials report that dealing with business external issues (such as economic crises and market fluctuations) is very challenging, while in generation X this index is lower, 37%.
Facing competition also appears as great difficulty for more ‘millenials’ (32%, against 27% of generation X). Already developing effective marketing and sales strategies is very difficult for 18% of millenials, compared to 12% of the older generation leaders. Finally, 23% of entrepreneurs between 30 and 40 years have difficulty controlling expenses and cutting costs compared to 16% of generation X.
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“The research reveals that if the demands were treated more strategically – with external support or experts – we could have small business more strengthened and more confident owners,” says the director of Itaú Unibanco.
Impact on lives and routine
The “owner head” study indicates that among small and medium entrepreneurs the work routine greatly affects their lives. For 64% of generation X leaders, having more time with family and playing the business is a big challenge, while Millenials is 58%.
Generation X also reports the most health problems related to the work routine, reaching 54%, compared to 45% of millenials. They are also those who feel more tired (51%) and overloaded (48%) compared to the younger generation (45%and 41%, respectively).
Although both generations stand out at some points ahead of their companies, the generational barrier can be challenging, as it requires constant update, according to the executive. “However, because they are dedicated more intensely, these entrepreneurs end up consumed by the lack of time, which limits them to grow and have more balance in their lives. Hence the importance of seeking support and drawing effective strategies. ”
