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Those Generation-Z workers dropping out of the corporate workforce may be launching the new generation of small businesses. Growing numbers of them are taking the entrepreneurial path and starting companies of their own.
“Many of them find their creativity stifled, being told by aging boomers to wait their turn.And some of them have said ‘maybe I can do this myself instead,” said Lone Star College economics professor Hank Lewis.
The latest statistics show the share of new businesses being started by Gen-Zers rose by 20 percent between 2023 and 2024.
From bike shops to bakeries, to plumbing to Pilates, Lewis says the fulfillment of doing what you love can make up for leaving the predictable, sometimes easier, world of 9 to 5.
“They know the product or service they want to offer. It’s something they have a passion for. So the 24/7 they have to do the first five to ten years of operating their own business is not a big deal because they’re enjoying what they’re doing and it’s giving them a sense of purpose in their life.”
A new survey by QuickBooks finds that 28 percent of Gen-Zers are considering starting their own business. That’s the highest percentage of any age group.
Lewis says aspiring entrepreneurs journey can be a challenging route of soliciting financial support from friends and family, and diligent work to understand business, as well the particular business they want to start.
“Those that do succeed, they’ve done their homework. They’ve researched the market. They’ve researched the product. They’ve researched costs and everything. They’ve come up with a five-year plan. There’s been a lot that goes into it before you basically open the doors on day one.”
Beyond knowing business nuts and bolts, Lewis says passion and perseverance are essential for what could be a challenging road to success.
“Four out of five first-time entrepreneurs fail in the first five years. A lot of people don’t even try a second time. Some of these folks are having to learn some resilience on the fly and it’s interesting to see how this is working.”