Generation Z is famous for being the most innovative, creative, and entrepreneurial generation. The internet has opened up alternative ways to make money, and, as a result, millions have embraced it.
A Nielsen study in 2020 showed that 54% of Generation Z (people born from 1997 to 2012) want to start their own company. These aspiring entrepreneurs mentioned that control, living debt-free, and being good to the planet were their primary motivators for pursuing their dreams of business ownership.
Not only is Generation Z (Gen Z) more racially and ethnically diverse than previous generations, but they are on track to be one of the most educated generations yet.
This generation is more open to modern technologies and cutting-edge ideas in virtually every facet of life. They have a unique way of thinking about business, and they consider entrepreneurship a legitimate way to make money rather than a high-risk job.
Entrepreneurship seems to be a natural choice for Gen Z. Let’s break it down even further.
Entrepreneurship is a solution to the shortcomings of the corporate world.
Corporate jobs aren’t nearly as flexible or creative as they used to be. They typically require long hours and inflexible work schedules.
Corporate America can also feel like a rigid hierarchy where growth and change are difficult to achieve. Middle management positions aren’t always as rewarding; instead, they can involve a lot of administrative tasks and bureaucracy.
With more investors demanding quarterly results, companies are under pressure to prioritize short-term gains over long-term innovation—hardly an inspiring environment for young workers who want to make their mark on the world.
And there’s another factor at play here: job security isn’t what it once was—especially in industries disrupted by technology.
So many Gen Zers believe taking matters into their own hands and starting their own business is the fastest track to achieving personal and professional fulfillment.
Gen Zers want to get the most out of life. They want to learn new languages, travel the world, connect with people and enjoy their free time. Entrepreneurship allows them to be their boss, make their hours, and have time for everything they value in life.
Not every Generation Zer is going to become an entrepreneur. But when you consider the shortcomings of the corporate world, it isn’t all that surprising that so many young people are considering entrepreneurship as a viable career path.
With the rising popularity of unions among Gen Z, it’s clear that improved benefits, better pay, and fair treatment are a priority for this generation.
Not all Generation Zers are college-bound.
If you are over the age of 35, you probably remember a time when attending college was the “only” path to achieving success. A college degree was a badge of honor that gained respect from your friends and family.
Nowadays, the younger generations aren’t as likely to follow this traditional path.
According to a 2019 study by TD Ameritrade, 89% of Gen Z have considered an alternative educational path outside of a four-year degree.
From coding boot camps to online courses and the power of Youtube, Generation Z’s access to online education has never been easier. And thanks to the internet, these mediums are significantly less expensive than the average college degree.
Gen Z grew up with the internet, and they are very good at using it to get what they need. They know how to source products for dropshipping, how to create their own or download design elements for their marketing materials, and they know how to market their products through social media.
And in areas where Gen Z lacks a specific skill set, they will outsource to a subject matter expert.
For example, in order to never miss a legal correspondence for their LLC, Gen Zers may employ a registered agent service. Appointing a registered agent is a requirement in all 50 states and outsourcing this task ensures you are compliant with the law. It also cuts down on paperwork!
Further, Gen Zers are not traditionally well-versed in HR processes like managing payroll or employee benefits. Instead of panicking that they don’t know how to do these things, they will outsource and connect with companies to help take over these specific tasks.
With young people learning on their terms and outsourcing where they lack knowledge, the ability to start a business online is easier than ever before. Gen Z is not afraid to leverage a Google search to help them create a successful business.
Earning potential is unlimited.
Young people today have heard countless stories of entrepreneurs who made it big by disrupting industries and changing the world. From the success of small businesses on Instagram to large companies such as Uber and Airbnb, entrepreneurship is becoming an increasingly desirable career choice for Generation Z.
Jobs in finance, technology, and engineering can all earn top salaries. However, at some point, salaries are capped at how much a company is willing and can afford to pay you.
When you own and operate your own business, the earning potential is limitless. With hard work and dedication, nothing holds a Gen Z back from becoming a millionaire before turning 30.
With a lot of great options for teen bank accounts, Gen Z are now able to start a business, open a bank account, and learn how to manage their finances from an early age.
To Gen Z, financial freedom is much more desirable than working their way up the corporate ladder for twenty-plus years.
Generation Z wants to make a difference.
With an increasing amount of emphasis on social responsibility, Generation Z is in a unique position to use entrepreneurship as a way to change the world.
This generation has grown up with unconventional ideas—from starting their own YouTube channels to having instant access to global information from the palm of their hands.
It’s not surprising that many Gen Zers are looking for ways to apply this unconventional way of thinking by capitalizing on their ideas to create businesses that help solve real social and political problems in the world.
Generation Z has been called many things: lazy, entitled, self-centered. But one undeniable thing is their motivation to make a difference in the world.
Whether through social media activism or starting a non-profit to better the planet, Generation Z wants to use the tools of business and entrepreneurship to impact the world positively.
Final Thoughts
With the rise of Generation Z, there has been a material increase in the number of young people interested in entrepreneurship.
Gen Z craves control of their career path and thrives off of their passions. That means starting up a travel blog, opening a cafe, or creating a non-profit to benefit a cause that is near and dear to their heart.
Entrepreneurship gives Generation Z access to money they might not make when working for someone else. Their salary is no longer limited to what their company is willing to pay them. Instead, they can charge whatever the market will bear for their products or services.
And lastly, starting a business offers the flexibility to work from anywhere, create their own schedule, and enjoy the digital nomad lifestyle. Say goodbye to office cubicles and hello to coffee shops and van life. Generation Z will surely leave a positive impact on this planet.
