Future founders: Gen Z aspirations, inspirations, and ambitions

Why Gen Z wants to start a business

The motivation behind starting a business is deeply personal but it also is impacted by the social and economic landscape. However, it appears that even across generations the drive behind starting a business hasn't changed over time. The thing that both established founders and Gen Z aspiring business owners covet the most is independence.

Over half (51%) aspiring entrepreneurs from Gen Z say their main motivation was to be their own boss, reflecting a shift away from traditional workplace hierarchies. This is even more pronounced amongst current business leaders, where the figure jumps to 75%. This could be because they've spent more time navigating the structures of conventional workplaces, leading them to feel that their need for more autonomy is greater.

Interestingly, financial independence also ranks high for both Gen Z and older, more established founders, with 50% versus 44% respectively. Although for Gen Z, it seems less about wealth and more about flexibility and control. And while older founders are more likely to prioritise work-life balance (58%) compared to Gen Z's 43%, the younger generation is notably more motivated by personal development and the pursuit of passion. These younger entrepreneurs are not just chasing profit; they're chasing purpose, freedom and a future that allows them to make of it what they want. Below are the top ten motivation factors we saw for Gen Z.

What's holding Gen Z back from starting a business

While Gen Z is full of ambition and ideas, many are acutely aware of barriers they'll face when trying to turn their passion and vision into a viable and thriving business. For many, the road to entrepreneurship feels less like a straight line and more like a maze; one filled with a plethora of blockers like financial uncertainty, steep learning curves, and a lack of a safety nets.

Unsurprisingly, the most common concern is cash flow. Over a third (36%) of aspiring Gen Z entrepreneurs state that this is the biggest obstacle they anticipate facing. It's not just about securing enough funding to launch, it's also about sustaining the business month to month in its early, fragile stages. Many don't have the financial cushion to take risks, making this a major psychological and practical hurdle to overcome. With many reluctant to take on debt, 60% say that they'll rely on savings, while 30% look to support from family. While this cautious approach may protect them from financial strain, it can also limit their growth and ambition from the get-go. Whilst 35% of respondents stated they'd look to secure a traditional bank loan, others were keen to evaluate alternative routes, such as government grants or funding programs (24%), to crowdfunding (18%), business competitions (18%) and angel investors (14%). Below are the top ten challenges Gen Z envisage they'll come across when starting out a business.

But here's where reality differs from expectation. While the future generation of founders fear that cash flow will be their biggest hurdle, seasoned business leaders tell a different story. In hindsight, the most common struggle they faced was building visibility and attracting a customer base, not managing finances. This suggests that while money does matter, it's the ability to cut through the noise and gain traction that often becomes the real test of a business's survival. It'll be prudent for those at the beginning of their journeys to factor this when putting plans together for their business.

It is a factor that's on their mind as nearly a third of Gen Z (28%) worry about how they'll gain visibility and build a customer base. In today's saturated digital marketplace, standing out requires not just a great product, but sharp marketing skills, time, and often a budget. All of which are in short supply for many first-time founders. This pressure could result in a one-way ticket to burnout and mental health challenges, which 14% admit being worried about. While many are keen to go at it alone, it seems the younger generation are distinctly aware of the emotional weight that building a successful business has.

Skills, aspirations and inspiration: what kind of leaders are Gen-Z shaping up to be?

Certain cohorts of Gen Z may be new to the business world, but they're already forming a clear picture of what it takes to lead. They're bringing a fresh perspective and expectations that are reshaping the traditional workplace. So, what skills do they value the most in entrepreneurship? Well, 33% stated that financial management was the skill they needed to master to be a top business leader. This is swiftly followed by marketing skills, with over three in ten (31%) citing marketing as one of the most important skills to learn. In a digital-first landscape, effective marketing is essential to build brand awareness. Gen Z's emphasis on marketing reflects their fluency with digital platforms, the fact that they've grown up in the social media age, and the importance they place on visibility and engagement.

But, with the wisdom of experience, established SME leaders' softer, less tangible skills take centre stage. They found that problem-solving (36%) and persistence (35%) made their top rankings. Moreover, skills like leadership and innovation  which were more highly rated by Gen Z - fall to the bottom of the SME leaders list.

This contrast reveals a potential blind spot for up-and-coming founders. While they are placing a lot of emphasis on skills like finance and marketing, experienced businesses owners are telling a different story. It's not just about spreadsheets and marketing campaigns; it's about grit and the ability to navigate both pressure and the unknown. Below are the top skills Gen Z aspiring business owners felt are needed when starting a business.

AI and sustainability: the juxtaposing building blocks of future businesses

Nowadays, businesses need to do more than just turn a profit. They need to reflect personal values and tackle social issues as it helps brands connect to consumers on a deeper level, build trust and drive positive change. Customers are increasingly looking to support brands that align with their values. This could be why 55% of aspiring entrepreneurs say it's very important that their business is sustainable and has a positive environmental impact. Meanwhile, there's also a strong pull towards innovation, with 35% of young respondents stating they see AI as essential for efficiency, growth, and staying competitive, with another 49% planning to use it selectively, particularly when it comes to customer support. In fact, only 10% of potential Gen Z founders are against the use of AI in their businesses in the future.

However, AI and sustainability don't always go hand-in-hand. AI systems, especially those that rely on large-scale cloud computing, can be energy-intensive, contributing to higher carbon emissions and resource consumption. This puts Gen Z founders at a serious impasse. On one hand, they want to harness AI to streamline operations, reduce potential costs and drive innovation. On the other, they're committed to building ethically sound, environmentally conscious businesses. If Gen Z truly wants to lead the charge in responsible entrepreneurship, they'll need to ensure that sustainability is built into their tech decisions from day one. That means prioritising green data centres, exploring low-energy AI solutions, and continuously assessing the carbon cost of innovation.

Who are Gen Z turning to for inspiration?

In today's digital world, inspiration doesn't necessarily come from reading through textbooks and newspapers or attending guest lectures. It happens while scrolling. So, it's no surprise that social media influencers top the list of those shaping young entrepreneurial mindsets today, with nearly a quarter (24%) of respondents saying these digital figures have the biggest influence on their decision to start a business. Many business influencers, from all ranges of backgrounds and education levels, can provide a front-row seat to the real highs and lows that come with building a business. Below are the top five influencers stated have the biggest impact on Gen Z.

Who/what do you think has the biggest influence on young entrepreneurs starting a business today, if anyone/anything?

Interestingly, this modern form of mentorship vastly outweighs more traditional sources of inspiration like family (10%) or educational creators on YouTube and podcasts (8%). That doesn't mean these other voices aren't important, it's just that the immediacy and accessibility of social media has made it the loudest. But this influence comes with its own challenges. While influencers can spark ambition, they can also set unrealistic expectations about success, timelines, and the grind behind the scenes.

Where the next generation of business leaders are already starting up

For many, Gen Z's entrepreneurial ambition isn't just theoretical. It's already reshaping the business landscape. We delved into the number of companies incorporated between 2018 and 2024 to see the stats for businesses that were incorporated with a Gen Z director on day one (people born between 1997 and 2012). And it's an impressive number at that. The growth is not only rapid but widespread, suggesting that Gen Z isn't waiting to gain more experience, but rather that they're opting to take the challenge head on, build it for themselves, and learn what they need in order to succeed.

Over the past six years, Gen Z has become a dominant force in early-stage business creation. In England alone, the number of companies registered with a Gen Z director on day one grew from 13,395 in 18/19 to an astounding 100,940 in 23/24. That's a 645% increase. The most recent data alone shows a 33% year-on-year rise, suggesting that this generational shift is continually growing.

While England leads in volume, the fastest growth rates are happening elsewhere in the UK. In fact, in Northern Ireland, incorporations by Gen Z directors surged from a mere 187 in 18/19 to a shocking 2,201 in 23/24. That's a 1,077% increase overall, and more than double the number of incorporations in the past year alone, as it saw an increase of 153% year-on-year. Plus, based on the data unearthed from the index covering the best place to start a business, and Belfast taking the top spot, it's clear to see that young residents there are making the most of the benefits offered. Data from Wales tells a similar story. Starting from a low base of 589 in 18/19, the number of Gen Z-led companies climbed to 8,527 in 23/24: that's a 1,348% increase, the steepest in the UK.

Number of companies incorporated between 01/04/2018 and 31/03/2024 that had a Gen Z director (born 1997-2012) appointed on the day of incorporation

We drilled down further to review which cities are seeing the most noticeable shifts. Suffolk in particular saw the biggest percentage increase at 1,375%, growing from 112 incorporations in 18/19 to 1,652 in 23/24.

So, across all regions, these sharp increases showcase the shift in mindset over time. Where older generations may have viewed starting a business as something to pursue perhaps later in life, (maybe after gaining experience, saving capital, or climbing the career ladder) Gen Z is treating business ownership as a starting point, not a destination. Whether it's due to lower barriers to entry, access to online learning, or a cultural shift favouring self-starting over traditional career paths, it's clear the younger generation isn't waiting for permission. They're creating their own opportunities, registering companies in record numbers, and are redefining what it means to launch a career today.