Gen Z Is Increasingly Turning to Entrepreneurship

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Gen Z is trading entry-level jobs for entrepreneurship, with more young people starting their own businesses, according to WSJ.

The Big Business: As AI reshapes the job market, more young Americans are exploring entrepreneurship as an alternative to the traditional career ladder. With AI tools making it easier and cheaper to launch a business, becoming your own boss is looking more appealing than ever.

Behind the Venture: Gen Z is putting its entrepreneurial ambitions into action, with a little help from AI.

  • In 2025, at least 23% of Americans ages 18 to 34 were running their own businesses or side hustles, up from 19% in 2021, according to Babson College. Within that group, the rate more than doubled among 18- to 24-year-olds.

  • In a survey of more than 1,000 people who started businesses in 2025, over 70% of Gen Z entrepreneurs said they used AI to help get their ventures off the ground.

  • Some Gen Z founders are also turning to venture capital to fund their startups, bypassing the traditional corporate career path altogether.

Final Enterprise: Sheena Jindal, a Gen Z founder and founder of VC firm Sugar Free Capital, says she’s seen cases where raising $2 million is easier than landing an entry-level job. And there’s plenty of startup activity to back that up. According to the PitchBook-NVCA Venture Monitor, there were roughly 8,625 first-time financing deals in the US through the third quarter of 2026.

The Future of Work: As Gen Z continues down the path of entrepreneurship, a boom in startups run by young founders could be on the horizon. Meanwhile, as AI takes on more entry-level tasks, traditional career opportunities may become harder to find — making entrepreneurship an increasingly attractive alternative for 20-somethings.

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Today’s email was written by Deena ElGenaidi.
Edited by Nick Comney. Polled and Copy-edited by Kait Cunniff.
Published by Darline Salazar.