Social Media, Peer Influence, and Sustainable Entrepreneurial Decision-Making among Gen Z in India
DOI:
https://doi.org/10.69980/drtb2241Keywords:
social media influence, peer effects, Fear of Missing Out (FOMO), Gen Z entrepreneurial, decision behaviour, behavioural finance, financial literacyAbstract
The paper focuses on the impact of social media and peer effects in defining sustainable entrepreneurship and innovation-driven decision-making among the Generation Z entrepreneurs and early-stage innovation participants in India. The study design is a mixed-method research design to integrate both quantitative survey data (N = 50) and qualitative data to determine the behavioural patterns and perception drivers that determine entrepreneurial financing and sustainability-focused decisions. The findings reveal that younger Gen Z participants are significantly more susceptible to externally influenced decision-making, as evidenced by strong association between demographic factors and unsustainable entrepreneurial decision outcomes (χ² = 16.55, p < 0.001). A substantial proportion of respondents reported experiencing unsustainable entrepreneurial decision outcomes (64%) and modifying their entrepreneurial financing and sustainability-oriented decisions (66%) due to social media discussions and peer influence. Fear of Missing Out (FOMO) emerged as a critical psychological driver, increasing reliance on digital financial, entrepreneurial influencers, trend-based decision-making, and social media engagement. High-FOMO individuals were significantly more likely to follow influencer advice (F = 14.49, p < 0.001) and prioritise trending investments. Comparative analysis further indicates that participants relying on fundamental analysis exhibit greater behavioural stability than socially influenced participants, despite similar financial outcomes. The time spent on social media showed no significant relationship with investment intensity, suggesting that exposure does not directly translate into financial action. The study highlights behavioural vulnerabilities among digitally native Gen Z entrepreneurs and underscores the need for targeted financial literacy initiatives, regulatory oversight of finfluencer content, and responsible digital investment practices.
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