And it is precisely this generation, Generation Z (born 1997 to 2012) — that is unlike previous generations, Generation Z has grown up in the world of technology, social media, and immediate access to information. Based on data from October 2023, they are uniquely prepared to navigate the digital space, empowering them to reclaim the meaning of entrepreneurship for the digital age. Whether launching e-commerce brands, creating viral content, or expanding upon existing business models, Gen Z entrepreneurs are harnessing technology to launch innovative, scalable businesses that are also deeply rooted in their values.
The Digital Native Advantage
Gen Z is the first generation of true digital natives. They have never lived in a world without smartphones or social media, or without services that are always in demand. The fluency in technology provides them with a massive leg up in starting businesses. They know how to operate within digital environments, capitalize on social media as a marketing tool, and harness data analytics to inform decision-making. To Gen Z entrepreneurs, the internet isn’t a tool; it’s their playground.
These platforms have become launchpads for young entrepreneurs: Instagram, TikTok, YouTube, and Shopify. These tools enable them to connect with global audiences at little to no upfront cost. A Gen Z entrepreneur can establish a dropshipping business with little more than a laptop and an internet connection. They can launch viral TikTok campaigns to advertise their products; they can partner with influencers; they can cultivate a devoted customer base — all without a physical storefront or a sky-high marketing budget.
An Emphasis on Authenticity and Values
Gen Z entrepreneurs are also known for their authenticity and social responsibility. This generation has an acute awareness of global challenges like climate change, social justice, and mental health. They expect their businesses to have a positive impact on the world and not just make money.
Gen Z entrepreneurs are creating brands that fit their values. For example, establishments such as Depop and ThredUp have seen this meteoric rise and are part of a sustainable fashion induction that focuses on the moral aspect of fashion consumption. Companies founded by Gen Z’ers like allergen-free snack brand Partake Foods and eco-friendly hard kombucha company JuneShine are tapping into niche markets while pushing sustainability and inclusiveness.
This values-driven stance isn’t a marketing ploy — it’s built into their DNA. Gen Z shoppers are a particularly discerning audience — they can smell inauthenticity from a mile away. This is why entrepreneurs with an authentic mission based on their brand are more likely to develop trust and loyalty to their audience.
“We’re seeing millions of normal people starting side hustles and turning them into micro-businesses.
Gen Z’s Talent for Side Hustles and Micro Business Gen Z is moving away from the conventional 9-to-5 career path and into the realm of side hustles and micro businesses. Such undertakings give them a chance to pursue their interests, diversify their income, and enjoy a certain independence.
Platforms such as Etsy, Redbubble, and Patreon have enabled Gen Z to monetize their creativity more easily than ever. From selling handmade jewelry to designing digital art to producing exclusive content for subscribers, young entrepreneurs are figuring out how to monetize their passions. On the other hand, the boom of the gig economy powered by apps like Uber, DoorDash, and Fiverr has offered Gen-Z flexible ways to make some cash while starting to pursue their small business ideas.
Learning
[ Read: Gen Z Entrepreneurs Want to Change the Way We Work] They are learning as they go, sometimes educating themselves on the skills they need via online videos, such as YouTube tutorials, podcast discussions, and eventual classes on sites like Skillshare and Coursera. This same self-initiated approach to personal learning also enables them to transition to new trends and technologies with agility.
What’s more, Gen Z is extremely collaborative. They have no qualms about asking mentors for advice, turning to online communities, or collaborating with peers to build their businesses. Platforms such as LinkedIn and Twitter are valuable networking tools for young entrepreneurs, allowing them to network with industry leaders and like-minded people.
Challenges and Opportunities
Gen Z entrepreneurs have a lot going for them, but they have some unique challenges as well. The competition in the work of the digital world is fierce and to be noticed and recognized you need to be constantly creating and evolving. Furthermore, the sheer demand to stay relevant online can be exhausting and result in burnout and mental health dependencies.
But these challenges are also opportunities. Gen Z’s capacity to pivot and accommodate change is a singular strength. They’re not afraid to fail and then try again. Their resilience, tech-savvy nature, and commitment to values will set them up well for long-term success.
The Resurfacing of your future opportunities
With Generation Z flooding the workforce and breaking into businesses, they are changing the landscape of entrepreneurs. They are raising the bar on what it means to succeed as an entrepreneur with their focus on technology, authenticity, and social impact. They demonstrate that age is no obstacle to ingenuity and that companies can bring in revenue and still have a sense of purpose.
Thanks to the digital age, the rules of the game have changed: Entry into the world of entrepreneurship has never been easier. With the right idea, tenacity, and a desire to learn, anyone — regardless of background or experience — can build a successful business. Gen Z knows that the future isn’t just about launching businesses, it’s about creating a better world through entrepreneurship.
