Gen Z is poised to overtake Boomers in the workforce this year as the oldest members of the age group turn 27.
Despite this, Gen Z is wearier than other generations about the “traditional” work options, craving autonomy, evidenced by a Quickbooks survey that found that Gen Z is more interested in starting their own businesses than any other generation.
Entrepreneurship can be tough, though, so why is Gen Z so interested in it? I surveyed Gen Z members to learn more about their entrepreneurial spirit. Here’s what I found.
Gen Z Entrepreneurship Data
Most survey respondents (72%) said they were employed full-time. Twenty percent are employed full-time with a side hustle or side business, and just 8% are entirely self-employed.
A majority also said they’d consider themselves entrepreneurs but only feel somewhat confident in their entrepreneurial journey. However, a majority of those who have a business or side hustle say they are very confident in the future success of their venture.
A great demonstration of Gen Z’s entrepreneurial drive is that most of those who own a business or have a side hustle say they’re the first person in their family to do so (51%).
Being the first in their family is interesting compared to the next question I asked: whether Gen Z thinks they have the same level of business/employment opportunities as their parents’ generation — they only somewhat agree (30%).
Gen Z entrepreneurs who have a side hustle or are self-employed were motivated by a desire to be their own boss and escape the traditional 9-5, increase their income/financial stability, and have a greater work-life balance.
People who are employed full-time but interested in pursuing a side hustle in some form are also motivated by being their own boss/escaping the traditional 9-5. That’s followed by a desire to increase their income/gain financial stability, and gain a greater work-life balance.
Here are some other interesting takeaways from my survey:
- Respondents who own their own businesses or have a side hustle typically work alone or have between 1 and 9 employees (in addition to themselves).
- Gen Z entrepreneurs often get funding for their business/side hustle from personal funds and savings or income from another job.
- The most significant challenges for self-employed and side hustle-having respondents are managing the requirements of starting a business (41%), finding customers (38%), and having the funding to start a business/knowing where to find it (35%).
I was also curious if respondents think their younger age impacts the challenges they face, and responses vary. Some say yes that potential customers don’t trust them as much as someone older and aren’t taken seriously. Others say their age is an advantage: “I think that with what age I am at, it gives me an advantage with all the resources today.”
Here’s Why Gen Z Thinks It’s So Entrepreneurial
It’s clear that Gen Z values independence and flexibility, giving precedence to work-life balance over other factors. I want to know more, though, directly from Gen Z themselves. So, I asked our survey respondents exactly why they think their generation is so entrepreneurial. Here’s what they said.
Gen Z grew up with technology.
Gen Zers were born a few years before the internet became commonplace or were born into a world where it already was. This makes Gen Z technologically adept, which makes it easier for them to find, access, and use the tools they might need to start a business successfully.
Here’s what I mean: A Gen Zer’s Boomer parent might have needed to put in extra effort to find the information they need to start a business, but their Gen Z child can conduct a quick internet search for how-to guides, online courses and even advice and insight from successful entrepreneurs to get started.
The rise of the creator economy also makes it incredibly easy for Gen Z to venture into entrepreneurship with social media. In fact, in our 2024 Consumer Trends Survey we asked if respondents considered themselves to be creators, and 25% said yes. If I cut the data to Gen Z respondents alone, the number jumps to 50%.
I attribute this to the fact that anyone can monetize their entire online presence from a device stored in their pocket, from something as simple as collecting money from a TikTok that goes viral or someone taking the time to build their brand, become an influencer, and build income from things like brand partnerships.
I think one survey respondent said it well: “Because we have more upgraded technology and it lets us communicate with the whole world now, we can also edit videos with our own phones no need for computers.”
Gen Z isn’t interested in the corporate world that its parents worked in.
The business world has changed significantly, so it makes sense that most survey respondents only somewhat agree that they have the same level of opportunities as their parents.
The lucrative opportunities that older generations capitalized on aren’t available anymore, which leads Gen Zers to pursue non-traditional career paths to make the most out of what’s currently available. Gen Z also cares about workplace environments and fair treatment, and many don’t think they’ll be able to find that with traditional employment.
I like one of the survey respondents’ answers to why Gen Z is a more entrepreneurial generation: “I don’t know if this is spot on, but I think it’s partly because Gen Z has so many creative tools now, and the traditional corporate 9-5 jobs aren’t doing as much as they used to. Plenty of people are engaging in side hustles to make ends meet, but I also think that the opportunity to make money off of one’s passion has never been better.”
Gen Z also watched their parents navigate the corporate world; some say it left a sour taste in their mouths. One respondent said, “We’ve seen our parents struggle and are in a time where we can go out and get it ourselves without a 9-5,” and another said, “We don’t want to be like our parents working for a company that doesn’t care about you and you never know if you could be replaced or fired. It’s better to be your own boss because you don’t have to deal with anyone barking demands at you and you know your income is gonna be steady.”
Some Gen Zers are just flat-out not interested in the 9-5 model at all: “The old ways of doing things are not appealing if you are considering ethics and employee rights,” and “Gen Zers want to escape the traditional 9-5 in which you spend the majority of your time working but never being able to enjoy your wages. Life is too expensive.”
And possibly the most standout response: “I think we don’t want to be stuck in a cubicle doing a 9-5 all day until we die.”
Gen Z cares about social change.
Gen Z shows an overwhelming interest in social good and only supporting businesses that help them further that. The same goes for the companies they choose to work for.
For example, our Consumer Trends Report also found that Gen Z believes, more than any other generation, that companies should take a stance on social issues, are more likely to purchase products based on brands commitments to diversity/inclusion, and have actually made purchase decisions based on a brands commitment to diversity/inclusion.
It’s clear Gen Z wants to make a positive impact and support those who do, but it becomes a lot easier to make sure they’re supporting the causes they care about if they run their businesses and be the change they want to see in the world.
Gen Z has a less positive outlook on life.
A McKinsey study found that Gen Z has a less positive outlook on life than older generations. Respondents cited factors like the impact of the COVID-19 pandemic, global unrest, and financial crises. Respondents also said they think about the fate of the world on a daily basis.
I see this anxiety present in the answer a survey respondent gave: “[Gen Z interest in entrepreneurship] is because nothing is as easy as or costs the same as it did for older generations. I might never be able to afford a house because of the cost of living and minimum wage not matching up as much as it did as little as four years ago. There’s so many issues with the world today and a lot of the older generation, people who have the power and experience to change it for the better, only want it to benefit them and no one else.”
It makes sense to me that, in the face of this anxiety, Gen Zers look to entrepreneurship because it gives them complete control over their work and impact (if nothing else).
Gen Z is worried about job security.
Gen Z was set to come of age in a strong economy, but COVID-19 drastically changed the economic outlook in an extremely short period. A Pew Research Center survey found that half of the oldest of the generation (18-23yrs) reported that they saw someone in their household lose employment or take a pay cut because of the economic impact of the pandemic.
Witnessing that at a formative age, when many are considering their futures, applying to college, and seeking their jobs, could bring a sense of fear for their own job security.
Taking matters into their own hands and future-proofing their careers through entrepreneurship is a way out for Gen Z, who might be hyper-concerned with job security based on what they saw. It gives them full control over how they work and lets them be responsible for doing what they need to do to set themselves up for success, regardless of circumstances.
Two respondents shared good insight: “Cost of Living is high and wages are flat. People see entrepreneurship as lucrative and therefore want to pursue it,” and “The current economic situation doesn’t allow you to make ends meet when working for some corporations. Having your own company allows you to have more freedom and a better financial system if done properly.”
Gen Z is confident in their ability to succeed.
Despite a negative outlook, Gen Z is still confident in its ability to succeed. One respondent said, “We believe more than ever that we have what it takes to run a business, and the world is full of consumers who make it possible.”