Entrepreneurship. A word that was, for me at least, difficult to spell and difficult to say for the longest time. The idea of branching out on your own, betting on yourself, and creating something you’re passionate about always seemed daunting. So, naturally, my first job out of university led me to a start-up.

At our start-up, we think about and try to understand our generation on a daily basis. What makes Generation Z tick? What do we like? Where do we spend our time? Working with consumer packaged goods (CPG) brands exclusively, our understanding of Gen Z typically centers around how we behave as consumers: how and where do we engage with brands? What decisions do we make in the supermarket, and why? Which of our values are non-negotiable when choosing between products?

But we’ve never looked at how Gen Z consumers are turning the tables on brands and creating the kinds of products and brands they find missing on the shelves. Gen Z wants to shop for sustainable, inclusive, and—most importantly—value-driven brands (that are affordable on our still limited discretionary income: brands, please remember that many of us are still in university or working entry-level jobs!).

What we regularly encounter in our research is the disappointment and exhaustion of Gen Z having to deal with brands that promise a lot but rarely deliver. It’s no wonder our generation is putting less trust in brands to solve the issues we care about. Instead, we’re relying on ourselves to step up and take initiative toward a better world.

So, let’s shed some light on what entrepreneurship means to Gen Z, why and how we do it, and how brands can support our journey.

Why Is Gen Z Obsessed with Being Their Own Boss?

I don’t think I’m the only person who finds entrepreneurship daunting. Traditionally, entrepreneurship seemed to only invite experienced and older people—those with successful careers who knew what they were doing and could be trusted to sustain a new business.

Thank goodness for the internet! In an increasingly interconnected world, the barriers to starting your own business are lower than ever, allowing young entrepreneurs to take center stage. Platforms like TikTok offer the opportunity to capture the attention of a global audience, quickly grow your community, and sell your product direct-to-consumer. Just last year, on Small Business Saturday, TikTok partnered with AmEx on a digital campaign called #SmallBusinessAccelerator, designed to help reach new audiences on the platform. Through the hashtag, users could find expert business guidance from popular TikTok creators.

Where Is Gen Z’s Desire for Entrepreneurship Coming From? Are We the Most Entrepreneurial Generation Yet?

We are a generation that has come of age in an increasingly uncertain world and now find ourselves trying to thrive in a ‘permacrisis’. We recently unpacked this tension in our blog post on Gen Z vs. Millennial Marketing:

“Millennials were raised in a boom and Gen Zs in a bust, characterized by the 2008 economic collapse coupled with fears of climate change and the global pandemic; 52 percent of Gen Zs don’t remember a time before the Great Recession.”

What Does This Mean?

Gen Zers were only kids when they felt the impact of the Great Recession on their families and perhaps started to realize that there is some risk associated with traditional careers. When we were finally entering the workforce ourselves, we found a shrinking economy devastated by a global pandemic. Not to suggest that entrepreneurship is without risk, but these crises remind us of the importance of self-reliance.

Fueled by this drive for self-reliance or a desire not to have a traditional career, our generation is disrupting ideas about workplace hustle and the traditional 9-5 day. Gen Z doesn’t have the same idea of “hustle culture” as Boomers do. We will put in the work, but we emphasize our work-life balance, having flexible work schedules, or working remotely from holiday destinations.

Almost two-thirds of Gen Z Americans have started, or intend to start, their own business. For Gen Z, entrepreneurship is often rooted deeply in their passions, meaning they turn their hobbies and interests into side hustles that fulfill them. According to a recent Microsoft survey, nearly half of Gen Z, about 48%, have numerous side hustles, compared to 34% of small business owners.

Before she joined TRFF, our Innovation Specialist, Gaby, did exactly what Gen Z does best and successfully launched her own side hustle. Here’s how she did it:

“I started my brand with £600 from my student loan and turned this into a £10,000 turnover, with no marketing budget and no fashion experience. I learned the basics via YouTube, created designs online, and initially sold via Depop. I used social media for marketing, with my friends as models. It’s amazing what you can do with the access to information and technology we have today.”

Let’s unpack how you can do it too.

How to Successfully Start a Business as Gen Z?

Use Your Technical Skills as a Digital Native

Our generation’s unique advantage is that we are fluent in the digital platforms and technologies that offer an inexpensive starting point to market your products or services to the right audience. We spend our whole day scrolling on TikTok anyway, so we might as well make some money along the way and promote our passions. Entrepreneurs who use TikTok for their business (48%) are almost twice as likely to have multiple side hustles as those who do not (27%), according to the Microsoft data.

Our understanding is not limited to social media though! We can easily and quickly adopt AI-powered tools, like the cool AI sidekick that Shopify unveiled in July of this year.

Seek Wisdom and Support

We are a purpose-driven generation and will create our business to have an impact. While passion and motivation are crucial, it is important to recognize that we don’t know it all and are open to mentorship from more experienced people. Networking cannot be overstated! Likewise, incubators and accelerators can provide much-needed support to young entrepreneurs and help lift your business off the ground. A great example is the incubator ‘Beauty & You’ launched by Estée Lauder and omnichannel beauty retailer NYKAA, supporting the next generation of Indian beauty entrepreneurs.

How Can Brands Support Gen Z’s Entrepreneurial Spirit?

 – Launch your own incubator

 -Sign up for a mentorship program

 -Foster Gen Z intrapreneurs in your own organization