Gen Z as founders, how they are acting?

The face of entrepreneurship is getting younger. Gen Z — those born between 1997 and 2012 — are stepping into the startup game with bold ideas, a native fluency in technology, and a defiant attitude toward outdated systems. Unlike previous generations who followed the traditional playbook of college degrees, corporate ladders, and slow career growth, Gen Z is rewriting the rules in real-time. They’re not waiting for permission or funding to build businesses — they’re doing it in their bedrooms, on Discord servers, and through social platforms. But what’s really behind this shift? Why are Gen Zers turning to entrepreneurship in such large numbers — and how are they reshaping what it means to be a founder?

Let’s break it down!

A generation raised on the internet

To understand Gen Z’s approach to entrepreneurship, you need to understand the environment they grew up in

This generation didn’t witness the birth of the internet — they were born into it. By the time many Gen Zers hit their teens, smartphones and social media were already deeply integrated into everyday life. Platforms like YouTube, Instagram, and TikTok didn’t just entertain them — they educated and inspired them. Gen Z had access to tutorials, startup journeys, side hustle breakdowns, and business failure post-mortems all at their fingertips

They saw creators like Emma Chamberlain go from YouTube vlogger to fashion icon and business owner. They watched Ben Francis build Gymshark into a billion-dollar brand before turning 30. They followed startups like Glossier and Canva — led by young founders disrupting legacy industries. And the message was clear: you don’t have to wait until you're older or have an MBA to start something meaningful.

Image by cake.com

Why is Gen Z choosing entrepreneurship?

There are several key reasons why Gen Z is increasingly choosing to launch their ventures instead of pursuing traditional 9-to-5 careers

1. Economic uncertainty

Gen Z came of age during — and after — the Great Recession. They saw their Millennial siblings struggle with debt and underemployment. Then the pandemic hit during their formative years. These repeated economic shocks made it clear that job security no longer exists. A 2023 report by Deloitte found that 46% of Gen Zers say they live paycheck to paycheck and 75% believe they will need side hustles to make ends meet.

Rather than relying on traditional employment, many are choosing to create their own sources of income. It’s not just about passion — it’s a practical response to a broken economic system

2. Access to free tools and platforms

The barrier to entry for starting a business has never been lower. Gen Z doesn’t need a lot of capital or connections to build a company. They can launch a product on Shopify in a weekend, design their brand using Canva, promote it on TikTok for free, and accept payments through Stripe or Venmo. This is a generation of digital builders

A report by Morning Consult found that 50% of Gen Z adults have considered starting a business — and many already have. The rise of "micro-entrepreneurship" — where people run one-person brands from their phones — is driven by these tools

3. Values-driven innovation

Gen Z isn’t just building businesses to make money — they want to make a difference. According to a 2022 IBM survey, 75% of Gen Z respondents said it’s important that a brand reflects their values. That translates into how they build their own companies. They prioritize sustainability, mental health, inclusivity, and transparency

Ziad Ahmed, founder of JUV Consulting — a Gen Z-led marketing agency that advises Fortune 500 companies on how to better connect with youth. He launched the company as a teenager because he felt brands were constantly talking down to his generation. Now, JUV has worked with brands like Nike and Unilever, helping them reshape their messaging through authentic youth voices

Notable Gen Z founders making waves

The headlines are catching up — Gen Z entrepreneurs are already building impressive businesses that defy expectations

• Mikaila Ulmer, founder of Me & the Bees Lemonade, started her company at just four years old and turned it into a national brand stocked in Whole Foods. Now in her early 20s, she’s a sought-after speaker and investor in youth entrepreneurship
• Alana Andrews, founder of So Positive Initiative and author of “Creating Confidence”, used her own struggles with confidence and entrepreneurship to launch a program that empowers other Gen Z kids to lead with impact
• Josh Browder, born in 1997, created DoNotPay, the “world’s first robot lawyer” to help people fight parking tickets and navigate legal bureaucracy without hiring expensive attorneys. He was just 19 when he launched the service
• Ben Pasternak, who dropped out of school at 15, built several apps and eventually founded SIMULATE, the plant-based food tech startup behind NUGGS, a viral chicken nugget alternative
• Avery Akkineni, president of Vayner3, entered the Web3 space early and led global campaigns for brands exploring NFTs and blockchain experiences — all before turning 30

Stats that show the shift

The trend isn’t just anecdotal — the data backs it up

• According to a 2022 GoDaddy report, one in five Gen Zers say they already run their own business
• A Shopify study found that 62% of Gen Z entrepreneurs started their business as a side hustle, and 44% want to make it their full-time job
• In a survey by SCORE, 38% of Gen Z respondents said they believe entrepreneurship offers the best career path, compared to 25% of Millennials
• Y Combinator, the legendary startup accelerator, saw a 38% increase in founders under 25 in its 2022 cohort

Rewriting the founder playbook

Gen Z doesn’t follow the Silicon Valley model of founders in hoodies pitching VCs in boardrooms. They are building in public, validating ideas on social media, and growing communities before they even register a company. Platforms like TikTok, Reddit, and Discord have become their idea labs — where product-market fit is tested through memes and comment sections

They’re skeptical of traditional hierarchies and prefer flatter, more collaborative structures. Many don’t even identify as “CEOs” — they’re creators, operators, or community leads. They’re less obsessed with raising millions and more focused on building sustainable businesses that reflect who they are

Challenges they face

It’s not all hype and hustle. Gen Z founders face serious challenges

• Age bias: Investors and customers sometimes don’t take young founders seriously
• Mental health strains: The pressure to hustle, perform, and constantly be “on” can lead to burnout
• Funding gaps: Despite their innovation, Gen Z founders often struggle to access traditional venture capital — particularly if they’re from underrepresented communities

But true to form, they’re building around those obstacles too. They’re raising funds through crowdfunding, building lean businesses, and prioritizing balance and authenticity over growth at all costs

The future is peer-led

What makes Gen Z founders especially powerful is how peer-driven their success is. They support each other — promoting friends’ businesses on social media, sharing resources in group chats, and building networks of digital collaborators around the world. They believe in community over competition

As they grow older and gain influence, Gen Z entrepreneurs will redefine work culture, reshape industries, and create entirely new sectors. We’re already seeing this in climate tech, creator economy startups, femtech, and mental health platforms — all areas where Gen Z is innovating faster than legacy companies can keep up

Final thoughts

Gen Z isn’t waiting for permission to lead — they’re already doing it. They’re founding businesses not because it’s trendy, but because it’s necessary. They want more autonomy, more meaning, and more impact — and entrepreneurship gives them that path

They are not here to play by the rules — they are here to rewrite them.

And the rest of the world is starting to pay attention.