From Generation Z to Generation Beta: The Future of Startup Innovation

Abstract

The entrepreneurial ecosystems are experiencing significant changes brought about by technological advancement, AI, and generational shift. Whereas generation Z constitutes the first digital native generation of entrepreneurs, Generation Beta will appear within contexts characterized by extensive usage of AI, which might lead to a fundamental change in the approach to innovation among startups. In this study, the authors use an inter-generational approach to determine the role played by generational imprinting in the processes of entrepreneurial cognition, innovation orientation, and entrepreneurial ecosystem dynamics. In order to achieve this objective, the authors conduct a sequential explanatory study using a mixed methods design. The survey involved 412 generation Z entrepreneurs in technology industries, with the help of SEM analysis, to identify the effects of digital nativity, AI adoption intensity, sustainability orientation, and startup scalability. or the qualitative approach, interviews with experts along with foresight analysis based on the Delphi methodology are conducted to forecast the characteristics of the Generation Beta, particularly AI-native mindsets, algorithmic capital distribution, and innovation systems combined with governance mechanisms. By combining these two streams, the study offers a framework called the Intergenerational Innovation Transition Framework (IITF) that reflects the shift from digital natives to AI natives in terms of entrepreneurial behavior.