Gen Z Entrepreneurship: Influencing or Innovating?
As we move deeper into the 21st century, Generation Z is emerging as a force to be reckoned with in the world of entrepreneurship. Born between the late 1990s and early 2010s, Gen Zers are redefining the future of work, balancing traditional jobs with side hustles, and actively building their own businesses.
The Rise of the Creator Economy
One of the key elements of Gen Z entrepreneurship is the rise of the creator economy. Influencers and content creators have become a dominant force, leveraging their online presence to build successful businesses. CBS News reports that 86% of young Americans aspire to become social media influencers, as it offers earning potential far beyond traditional paths.
Kylie Jenner, for example, became the youngest self-made billionaire thanks to her successful beauty brand, Kylie Cosmetics. Gen Z entrepreneurs understand the importance of authenticity and have cultivated strong relationships with their audiences, providing them with a unique advantage when building businesses.
Gen Z’s affinity for the digital world is a driving force behind their success. They are digital natives who have grown up with social media, which allows them to easily navigate the online landscape. This has helped them build personal brands and monetize their influence through partnerships, sponsored content, and merchandise sales – The Social Standard and Go Daddy both share profiles of Gen Z entrepreneurs who have made it big as influencers and creators.
However, in my view, being an influencer alone is not enough to create real innovation. I believe the focus on personal branding and the rapid pace of content creation is limiting the depth of exploration into entrepreneurial ventures that address pressing global challenges.
What Sets Gen Z Apart?
Gen Z views entrepreneurship differently than past generations. For one thing, the entrepreneurial landscape has changed, with lower barriers to entry for starting a business, and different views on what is important. Business Insider discusses some of these differences, including:
- Ease of Starting a Business: Thanks to accessible technology and platforms like Shopify, starting a business has never been easier. What once took months and significant capital to launch can now be accomplished in a matter of days.
- Data-Driven Decision-Making: Gen Z entrepreneurs utilize data analysis tools to make informed decisions about their businesses. This helps them streamline operations and focus on the big picture.
- Personal Branding: The concept of personal branding is a strategic necessity for many of this generation’s startups. Gen Zers understand the importance of building a strong personal brand to attract opportunities and partnerships.
- Acceptance of Differences: Gen Z values inclusivity and diversity, which informs their approach to business and innovation.
- Kinder, More Socially Responsible Entrepreneurs: Gen Z entrepreneurs are concerned about social issues, the environment, and helping their communities.
The Side Hustle becomes a Necessity
While Gen Z entrepreneurs have numerous advantages, they also face challenges. Many young people juggle multiple side hustles due to financial pressures and the desire for control over their time. This can lead to burnout and the need for balance.
In today’s economy, many Gen Zers feel that a side hustle is necessary for their generation to afford the lifestyle that their parents have attained. Data from the Bureau of Labor Statistics shows that the number of people working multiple full-time jobs has trended up in recent years and hit an all-time high in August 2022, with Gen Z leading the way. A survey by Paychex found that about half of Gen Z are employed at two or more places, as compared with other generations.
Deloitte’s 2022 Gen Z and Millennial Survey found that a third of Gen Z respondents worry about the cost of living above all other concerns, 45% live paycheck-to-paycheck, and more than a quarter said they doubt they’ll retire comfortably. And a Freddie Mac survey found that about 34% of responding Gen Zers said they didn’t think they’d ever be able to afford to buy a house.
Often the side hustle becomes a main hustle, creating necessity-based entrepreneurs versus innovation-based entrepreneurs. In fact, McKinsey postulates that in this economy—in which Gen Z faces higher-than-average inflation, student debt, credit card debt, and high housing costs—Gen Zers are actually looking for nothing more than relatively stable paychecks (rather than chasing the side hustle).
Can Gen Z Change the World?
The big question remains: Can Gen Z entrepreneurs change the world? If the current trends continue, Gen Z’s pursuit of entrepreneurship could lead to tremendous growth and innovation. They have the potential to create disruptor-type companies that challenge traditional industries and bring fresh perspectives to long-standing problems.
However, business failure rates remain high with 50% of small businesses failing within five years according to the Small Business Administration, and not all ventures will succeed. Nevertheless, Gen Z’s ability to adapt, innovate, and leverage digital tools gives them a fighting chance.
Let’s look at the type of innovative ideas that are coming out of places like MIT, and how these startup success stories can influence the upcoming generation of entrepreneurs.
Innovation-based Startups
In my former role as the Executive Director of MIT’s Martin Trust Center for Entrepreneurship, I was very fortunate to work closely with some of the smartest young entrepreneurs in the world.
I saw firsthand how innovation-based startups can succeed with access to proven frameworks, mentorship, and resources that support building impactful ventures. By guiding students from ideation to execution, the center helps transform groundbreaking ideas into successful startups that can address significant global challenges.
Here are a few of the innovation-based startups that I personally worked with as they made their way through delta v – MIT’s capstone program for entrepreneurship.
- Biobot Analytics analyzes sewage with molecular technologies and AI to provide early warning of population health threats across the globe.
- Podimetrics develops medical technologies such as the SmartMat, which helps monitor foot health in diabetic patients to prevent complications like foot ulcers.
- Ori has invented an entirely new type of apartment—one that radically improves the resident experience in smaller spaces by using sophisticated engineering and design.
- Infinite Cooling’s mission is to develop the cooling tower of the future. They help industrial plants have safer, more reliable, and more sustainable cooling towers by optimizing thermal performance and eliminating cooling tower plumes.
- Bloomer Tech focuses on developing smart wearable technology specifically designed for women’s health, such as bras with embedded sensors to monitor heart health.
Innovation-based startups focus on solving significant global challenges through advanced technology and research. These startups prioritize creating groundbreaking solutions to complex problems in health, environment, and other critical fields.
In contrast, entrepreneurial ventures centered around influencers and content creators often revolve around personal branding and monetizing online presence through partnerships and merchandise sales. While both types of entrepreneurship involve creativity and a desire to succeed, innovation-based startups typically involve deep research and development, long-term planning, venture capital fundraising, and a focus on sustainable impact, whereas influencer ventures are often more focused on immediate audience engagement and revenue generation.
As we look to the future, one thing is clear: Generation Z is not content with the status quo. They are ready to take on the world. And, although not every entrepreneur can attend programs like those offered at MIT, I urge today’s generation of entrepreneurs to aim high. Use the resources you have – whether it is taking classes, reading books and articles, finding a mentor, or working with an entrepreneurship coach – and use this information to explore the difference you can make in the world.
About the author
The Disciplined Entrepreneurship Toolbox
Stay ahead by using the 24 steps together with your team, mentors, and investors.
The books
This methodology with 24 steps and 15 tactics was created at MIT to help you translate your technology or idea into innovative new products. The books were designed for first-time and repeat entrepreneurs so that they can build great ventures.
A New Resource for Global Entrepreneurs
In my mind, entrepreneurs are the “grittiest” types of people around – I’ve been one and I’ve taught entrepreneurship to hundreds of students through the entrepreneurship programs at MIT, including my five years as the director of MIT’s delta v student venture accelerator program, which launches student start-ups into the real world.
“The harder the challenge, the more it builds you up,” explains Leslie Feinzaig, founder and managing director of the Graham & Walker Venture Fund, when discussing the recent Silicon Valley Bank collapse. “The best entrepreneurs I know will face a hundred insurmountable obstacles – and come back for the 101st because they actively believe that with enough time and opportunity, they will come out victorious.”
If this is your mindset, my new ebook was written for you. It is a resource for entrepreneurs as they face challenges unique to start-up founders.
As more people become entrepreneurs, they claim ownership of their future and help to drive the economy of their own country – and potentially global economies as well. Start-up companies fuel world economies and have created a $6.4 trillion start-up economy.
Exploring Start-Up Accelerator Programs Worldwide
During the time I spent at the Martin Trust Center for MIT Entrepreneurship, I was fully immersed in a wide variety of innovative technologies and start-ups – including working with students who had come to MIT from all over the world. I also traveled to various countries to present and share our insights on entrepreneurship and to gain knowledge from programs abroad. And while there are many programs to support entrepreneurs in the United States, I realized that start-up founders from other countries have fewer resources available to guide them.
That planted a seed in my mind to create a guide for entrepreneurs who may be exploring ways to start their own businesses, especially in countries outside the U.S. In my current role as an entrepreneurship consultant and coach, I’ve taken on a project to develop this resource. I also hope this ebook serves as a resource for global accelerators, governments, and other stakeholders as well.
Global Venture Funding Activity
According to data compiled by Crunchbase, global venture funding in 2022 totaled $445 billion — 35% lower as compared to 2021, but $100 billion more than invested in 2020. Regionally, the U.S. secures most of this investment at nearly 50%, followed by China (10%), the U.K. (6%), and India (5%) based on Dealroom data.
Some entrepreneurs may think that they need to be in the United States because of the amount of investment money here, but we’re seeing more money flow to other regions as well. Today, there are lots of options for entrepreneurs globally. Often, students I worked with at MIT realized they needed more time to get the required product fit and build the company with customer feedback. The growth of accelerators worldwide provides options if they decide to leave the U.S. and grow their companies in another part of the world – whether it is their home country or a region that is a good launching pad for their product or service. This growth of accelerators, government support, and growing entrepreneurial communities worldwide can provide entrepreneurs with this needed support.
Diversity, thought leadership, and collaboration all work together to make the global ecosystem of entrepreneurs a much richer place. I hope that the information I’ve collected about entrepreneurship around the world and how different countries support their entrepreneurs is helpful in your pursuits.
As a note, this ebook is NOT meant to be comprehensive – it is more of a directional guide. It does not cover all regions or all countries in any region. I also realize that entrepreneurial ecosystems are continuously evolving, so new information will always be coming to light. To that end, I’ve published this ebook under a Creative Commons license – I am open to other contributors who want to add to this resource from here – please feel free to reach out.
Take the Next Step to Entrepreneurship
If you are a student, an entrepreneur, an entrepreneur-to-be, or you work in an accelerator or government that is working to encourage entrepreneurship, I hope this ebook provides you with insight and resources to explore entrepreneurship further in a global sense!
Download the PDF ebook: An Introduction to Start-Up Accelerator Programs around the World
This free ebook was designed to be shared – you don’t even need to fill out any forms to gain access!
The author
Trish Cotter
Entrepreneurship consultant, Senior Lecturer, and coach. Trish is currently focused on entrepreneurship consulting, lecturing in MIT partner programs, coaching in AMP and EDP programs at MIT, and leadership coaching. Trish is helping people recognize and harness their unique energy to lead more effectively; she holds coaching certifications from both iPEC and ICF. Cotter’s educational background includes a BA in Business Administration from Boston College, an MBA from Northeastern University, an AMP from Harvard Business School, and an M.Ed. and Ph.D. from the University of Pennsylvania.
The Disciplined Entrepreneurship Toolbox
Stay ahead by using the 24 steps together with your team, mentors, and investors.
The books
This methodology with 24 steps and 15 tactics was created at MIT to help you translate your technology or idea into innovative new products. The books were designed for first-time and repeat entrepreneurs so that they can build great ventures.
MIT Entrepreneurship delta v – The Accelerator Program with a Difference
Massachusetts Institute of Technology’s Martin Trust Center for MIT Entrepreneurship launched its accelerator in 2012. The focused mission is to provide short-term, fixed-term, cohort-based, entrepreneurial coaching to selected MIT students to help them launch their business ideas as products in the real world of commerce within an accelerated timeframe. The original name of the program was Global Founders’ Skills Accelerator (GFSA) that was changed to MIT delta v to create an image in mind about the close connection that exists between velocity (v) and acceleration. The program founders consider the program a “capstone educational opportunity” to enable future entrepreneurs to launch their business ventures in an accelerated mode in the real world of operations. MIT delta v falls under 501(c) charity and funded by MIT and donations.
MIT Follows the Disciplined Entrepreneurship Framework Model
MIT employs the Disciplined Entrepreneurship Framework developed by Bill Aulet, which focuses on understanding customer needs and build the minimum viable product.
MIT delta v – a Distinct Program from the Ranks of Other Accelerators
MIT delta v is an educational accelerator that provides startups with curriculum, monthly fellowship (only for MIT and Wellesley students), workspace, mentorship, one-on-one coaching, and other benefits from June through August. The startups who have participated in this unique program represent multiple verticals – energy, agricultural technology, retail, financial technology, logistics, analytics, healthcare, education technology, media technology, aerospace, etc.
MIT delta v – Locations
The program was held in NYC Startup Studio, Cambridge Massachusetts and in 2020 virtual.
Salient Features of the MIT delta v Accelerator Program
- Experimentation: Every year, delta v has explored new coaching methods and student activities to learn from past failures and improve. When something succeeds, we scale it up.
- Equity-free Funding: As the delta v coaches and mentors do not claim a stake in their commercial startups, they learn freely and diligently without the fear of failing in the marketplace. The teams earn up to $20,000 in project funding. MIT students receive an additional $2,000 monthly Fellowship during delta v. Wellesley College are also eligible for delta v through a grant to support Wellesley students in their entrepreneurship journey.
- Nurturing Impactful Ideas: The ideas were nurtured through the MIT ecosystem from an initial idea before the delta v accelerator.
Honesty in Coaching: Neither the Martin Trust Center nor the MIT faculty members claim a stake in any entrepreneurial venture they help commercialize. Their only objective is the student’s learning and success in the marketplace.
Key Focus Areas of the MIT delta v Program
We strive to bring students an incredible and rewarding experience.
- Deliver delta v as a high-quality program (virtual or in-person) supported by experienced Entrepreneurs in Residence and programming focused on the fundamentals of Customer, Product, and Business readiness.
- ECC program –ECC program teaches our student-entrepreneurs tools for self-awareness. We believe that if we teach students how to work through the stresses of entrepreneurship more effectively, it will lead to better decision-making and healthier choices for their lives and business.
- Board of Directors – The mock board of directors includes diversity, business executives, domain experts, faculty, and delta v alums. The board members bring outside perspectives to the delta v teams in their real life and guide teams as they develop their businesses.
- Focus on financial literacy foundation and messaging right for an investor pitch, including understanding how much money they will need, what sources there are, and the pros/cons of their choices.
- Virtual Investor Day – The financial foundation leads into an Investor Demo Day.
- Demo Day – At the end of the summer, the delta v teams formally present their startups at the program’s culmination on Demo Day. This is the biggest day of the year for entrepreneurship at MIT. We host a Demo Day and a post-event networking experience.
We say the MIT delta v experience is like eating broccoli. Maybe students founders don’t like broccoli; perhaps they are not sure. But, as we work through the program, they will learn how to steam broccoli and roast it and sauté it and puree it. They’ll know all of the ins-and-outs of broccoli – and come up with a winning recipe.
The author
Trish Cotter
Entrepreneurship consultant, Senior Lecturer, and coach. Trish is currently focused on entrepreneurship consulting, lecturing in MIT partner programs, coaching in AMP and EDP programs at MIT, and leadership coaching. Trish is helping people recognize and harness their unique energy to lead more effectively; she holds coaching certifications from both iPEC and ICF. Cotter’s educational background includes a BA in Business Administration from Boston College, an MBA from Northeastern University, an AMP from Harvard Business School, and an M.Ed. and Ph.D. from the University of Pennsylvania.
The Disciplined Entrepreneurship Toolbox
Stay ahead by using the 24 steps together with your team, mentors, and investors.
The books
This methodology with 24 steps and 15 tactics was created at MIT to help you translate your technology or idea into innovative new products. The books were designed for first-time and repeat entrepreneurs so that they can build great ventures.