A smartwatch that detects falls or strokes in seniors. Blockchain applications that improve birth registration in developing countries. Advanced object detection algorithms powered by AI.

What do these business ideas have in common?

They were all created by some of the youngest entrepreneurs I’ve met—members of Generation Z.

As an investor and advisor, I’ve had the privilege of working with entrepreneurs from all backgrounds over the years. But seeing Gen Z in action has been particularly inspiring. While mentoring them, I’ve learned a lot about their approach to business and the factors that have shaped their ambitions.

Here’s a look at what drives them and the lessons we can all take from their unique approach to entrepreneurship.

Gen Z by the Numbers

Born between 1997 and 2010, Generation Z follows millennials. While they share some similarities—such as being highly familiar with digital media—their approach to business is quite different.

Gen Z is quickly becoming the most entrepreneurial generation ever. About 62% of Gen Zers say they have started or plan to start their own business. Those who have already taken the leap aren’t just starting companies; they’re redefining entrepreneurship through innovative brand-building, skill development, and business operations. Despite their young age—at most 24 years old—many Gen Z entrepreneurs are already finding success in industries ranging from app development and YouTube content creation to beauty products and handmade accessories.

In some ways, they’re no different from past generations. They still aim to create products and services that meet basic needs—food, entertainment, connection, and productivity. And like any entrepreneur, they must match their offerings to what people want.

However, they bring unique qualities and experiences to the table that give them an advantage in business. Here’s what sets them apart.

They Use Digital Connections to Build Their Brand

As a young entrepreneur in high school, my network was limited to people in my neighborhood or at the local park. But Gen Z has access to the entire world at their fingertips. They’ve grown up with instant digital communication, exposing them to a wide range of influences, perspectives, and opportunities.

Spending nearly three hours a day online—about an hour more than millennials—Gen Zers are naturally skilled at using digital tools and platforms. They understand branding and self-promotion, embrace collaboration, and use their networks to test ideas and gauge interest.

This generation is unafraid to put their work—and themselves—out there. They build audiences and find ways to turn their passions into income, whether through ads, sponsorships, or selling products. Consider YouTube: Of the 50 million creators on the platform, about two million earn six-figure incomes, and a significant portion of them belong to Gen Z.

For them, using social media to grow a business is as natural as setting up a storefront or website was for previous generations.

They See Entrepreneurship as a Normal Career Path

When I was starting out, my entrepreneurial role models were mostly family members—uncles with small businesses and my father, who supported my ambitions. But entrepreneurship wasn’t seen as a traditional career.

For Gen Z, however, role models are everywhere—from business icons like Elon Musk to social media influencers who built brands from scratch. And mentors are easier to find than ever.

Take Tara Bosch, founder of SmartSweets. She grew up watching Shark Tank, experimented with making sugar-free candy in her kitchen, and found an online course about launching a food business. She then connected with an accelerator for young entrepreneurs—all while still in college.

When I first spoke with Tara, I was struck by how comfortable she was with the idea of entrepreneurship as a career. Fast forward a few years, and she sold her company for $400 million. Her story is just one example of what happens when an entire generation views entrepreneurship as a real career option.

They Learn as They Go and Don’t Let Barriers Stop Them

Gen Z is the most educated generation yet, but they don’t always take a traditional approach to learning.

Instead of relying solely on formal education, they turn to online resources—incubators, MasterClass, and career certificates from Google, for example. They can find business case studies on Reddit or simply search “how to be an entrepreneur” and start learning.

Rather than waiting until they have every skill mastered, they jump in, gain experience, and fill in knowledge gaps along the way.

They’re also less concerned with traditional barriers. They see equality as a given, and while hierarchies and limitations exist, they find ways around them. They may lack formal credentials, but they don’t let imposter syndrome or self-doubt slow them down.

They Have More Affordable Tools—and They Use Them Wisely

When I launched one of my first businesses—an online dating company—I spent hundreds of thousands of dollars on servers and development costs. Today, thanks to cloud storage and easy-to-use apps, an entrepreneur could do the same for a fraction of the price. In fact, a Wells Fargo study found that most new businesses start with less than $10,000.

Gen Z businesses often start as passion projects shared online—such as makeup tutorials on YouTube or craft projects on Instagram. Interest from friends and family leads them to e-commerce platforms like Etsy and Shopify. Social media communities like TikTok help them expand their audience. Payment tools like Stripe and Square make transactions simple, while drop shipping eliminates the need for inventory storage.

Before they know it, they have a fully functioning business—all launched from their phone. These tools save time and money, allowing young entrepreneurs to focus on bigger goals, like making a difference in the world.

They Want to Make an Impact, Not Just a Profit

Gen Z is ambitious, but their drive isn’t just about financial success. They want to solve real problems—climate change, social justice issues, and global inequality.

They aren’t the first generation to want to change the world, but they see it as a necessity. The COVID-19 pandemic gave them a firsthand look at the challenges they may face, from economic uncertainty to political instability and climate crises.

Will these obstacles change their entrepreneurial path? Or will their resilience and willingness to take risks keep pushing them forward? My guess: The best ideas from Gen Z entrepreneurs are still ahead of us.