The future looks bright for Gen Zers who dream of running their own business. According to a December 2021 survey by Junior Achievement, about 60% of respondents aged 13 to 17 said they would rather start their own business than work as an employee. And it’s not just wishful thinking: 46% of Gen Zers performed freelance work in 2021, according to a survey by Upwork.
What’s driving this entrepreneurial spirit? For starters, the success of some Gen Zers is hard to ignore. Charli D’Amelio, for example, earned an astounding $17.5 million in 2021, out-earning the median pay of CEOs of S&P 500 companies, which was $13.4 million in 2020, according to The Wall Street Journal.
But it’s not just the potential for big bucks that are driving this trend. Thanks to affordable technologies like social media and online marketplaces, young entrepreneurs have multiple pathways to potential customers. Dave Mawhinney, an entrepreneurship professor and executive director at Carnegie Mellon University, believes that now is the best time for young people to start a business.
Of course, starting a business is not without risk. About 20% of US small businesses fail within the first year, according to data from the US Bureau of Labor Statistics. However, the good news is that there are backup options for those who fail. With 10.5 million job openings at the end of November 2022, there are plenty of opportunities for young entrepreneurs to find another job. And returning to school is always an option, as Jackie Dubois discovered when she closed her social media accounts and re-enrolled in college to focus on her mental health.
Benefits Of Starting A Business Today
One of the benefits of starting a business today is that it’s more accessible than ever before. Low startup costs and digital tools make it easier for young people to get started. Alyssa Nguyen, for example, started her graphic design business after teaching herself the skills during the pandemic. In 2021, she booked an impressive $170,000 in revenue.
According to Mawhinney, new ventures in copywriting, social media management, and virtual assisting have been among the most successful. Gen Zers are particularly well-suited to these types of businesses, thanks to their social media literacy, adaptability to virtual schooling, and constant digital communication.
As Gen Z founders create companies, they have the potential to attract talent who are looking for companies that prioritize work-life balance. Michael Yan, the 22-year-old founder of the job search platform Simplify, offers mental health support as a crucial benefit for his employees in addition to a flexible work schedule. This approach has helped him attract top talent, despite being a small startup.
In addition to work-life balance, Gen Z entrepreneurs are also focused on social and environmental impact. According to a survey by Deloitte, 49% of Gen Zers believe that businesses should have a positive impact on society, and 40% prioritize a company’s social and environmental impact when deciding where to work.
This focus on impact is reflected in the types of businesses Gen Zers are starting. Many are creating companies that tackle social and environmental issues, such as climate change, racial justice, and mental health. For example, 17-year-old Abigail Harrison founded the nonprofit organization The Mars Generation to inspire young people to pursue STEM careers and advocate for space exploration.
Overall, the rise of Gen Z entrepreneurs is a positive trend for the economy and society as a whole. By starting their own businesses, they are creating new jobs, driving innovation, and addressing important social and environmental issues. And with their digital skills, adaptability, and focus on impact, they are well-positioned to succeed in the ever-changing business landscape.