Though Gen Z and millennials may not have as much workplace experience as older generations, research reveals their strong drive to start their own ventures. Bankrate’s Side Hustles Survey shows that 48 percent of Gen Zers and 44 percent of millennials have a side hustle. With a combination of independence, motivation, and a desire to make an impact, they are stepping up to prove they have what it takes to succeed in business.
With the growth of social media and online tools, they now have access to resources that make launching a business easier than ever. We’ll explore business trends, the reasons behind Gen Z and millennials’ American dream to own a business, and practical steps to help them get started.
Key Insights
* 93% of Gen Z has taken at least one step toward exploring entrepreneurship, according to
ZenBusiness’s 2023 Neurodiversity and Entrepreneurship Survey.
* 50% of Gen Zers want to become entrepreneurs or start their own businesses, as shown in
Morning Consult’s “The Rise of Gen Z and the Future of Work” Survey.
* Most Gen Z business owners define success as being their own boss (46%), having a
flexible work schedule (43%), and achieving a positive work-life balance (42%), according
to Square’s Gen Z Entrepreneur Report.
* 80% of Gen Z business owners started online or with a mobile component, according to
Square’s report.
* 45% of Gen Z business owners used personal savings for their startup phase, as Square’s
data shows.
* 18% of Gen Zers and 20% of millennials want their side hustle to grow into their main
income source, according to Bankrate’s Side Hustles Survey.
Why Gen Z and Millennials Want to Own a Business**
Financial Independence and Stability
Bankrate’s Financial Freedom Survey found that Americans feel they need an income over $186,000 annually to feel financially secure, yet the U.S. Bureau of Labor Statistics reports the average salary in 2023 was $65,470. For many, starting a business is a way to control their earnings without a fixed limit, offering greater financial freedom as their business grows.
Influence of Social Media
Social media’s popularity may motivate younger generations to pursue business ownership. Today’s tools, such as e-commerce platforms and client-finding apps, enable them to build brands, reach audiences, and grow their businesses in ways older generations couldn’t. However, they must be prepared for the hard work, patience, and resilience required for long-term success.
Flexibility
Imagine setting your own work schedule and choosing your projects. Many Gen Zers say flexibility is a key to success, with 43 percent listing it as a priority. This flexibility helps them balance work with personal commitments and adapt to what works best for their lives.
Sense of Purpose
Deloitte’s 2024 Gen Z and Millennial Survey found that 86 percent of Gen Zers and 89 percent of millennials want meaningful work. They don’t just want a paycheck but to create positive change. Many see entrepreneurship as a path to fulfilling this purpose.
Limited Economic Opportunities
With more people living paycheck to paycheck, some young Americans are drawn to business ownership to achieve financial stability. Bankrate’s Side Hustles Survey shows that 36 percent of U.S. adults earn extra income through a side hustle, with nearly a third expecting they’ll always need one to cover expenses. Owning a business can offer more reliable opportunities for financial growth.
Steps to Start a Business
Find Your Business Idea
A successful business idea should serve a need in the market. Identify a specific gap that competitors haven’t met. For instance, if there is a shortage of vegan beauty products in stores, you could develop and market a line of these products, helping grocery stores meet a growing demand for sustainable goods.
Create a Business Plan
A strong business plan outlines your business goals, marketing strategies, and financial forecasts. A detailed plan is essential, especially if you plan to seek investors or apply for loans.
Register Your Business
To launch, you’ll need to register your business structure with your state, whether as a sole proprietorship, limited liability company, or corporation. Services like LegalZoom can help with the paperwork, and your state’s government website has information to guide you through this process.
Secure Funding
Starting a business often requires funding. Consider these options:
– Personal Savings: Many business owners begin with personal funds.
– Crowdfunding: Raise money from family, friends, or crowdfunding platforms.
– Business Grants: Look for grants from government programs or corporations.
– Startup Loans: Some lenders offer startup loans, though you may need to research those
available for new businesses.
The Bottom Line
Gen Z and millennials are passionate about becoming business owners, seeking the flexibility, purpose, and financial independence that come with it. To make these dreams a reality, they’ll need a thoughtful plan, a unique vision, and the resilience to navigate challenges and build a successful business.
