Why Women in Younger Generations are Chasing the Entrepreneurial Dream

BY ARIANA WHITE, GRADE 7

3 Gen Z entrepreneurs. Elle

Most of the businesses we support have been founded by old men. But what about upcoming businesses founded by younger women? In recent years, you have likely seen a local shop owned by a young woman, and although that shop may not be a well-known franchise, similar businesses are becoming more and more prevalent. In fact, there are 114% more women entrepreneurs than there were 20 years ago. Let’s talk about why young women have been making the shift.

Control

Members of Generation Z (those born in 1997 - 2012) have the highest stress levels of any generation according to the “Stress in America 2020 Report” by the American Psychological Association. In a survey by Deloitte, 48% of Gen Zers reported feeling stressed all or most of the time, and about 38% of Gen Z workers have taken time off of work due to stress and anxiety. Women also face stress and anxiety more than men, likely because they “have been disproportionately affected by job losses and increased family care responsibilities.” With the stress from job insecurity, women have been leaving the toxic workforce and controlling their own income, allowing them greater flexibility.

Levels of Stress Have Remained High Throughout the Pandemic, Particularly for Women. Deloitte

Debt-Free

Much of Gen Z grew up with parents who faced job loss and financial instability, especially during the Great Recession. This has driven Gen Z to want to retain financial security and learn from their parents. But even with that dream, there are ups and downs in life. When asked in a survey about their most pressing concern, the cost of living was the top answer by Gen Z at 29%. Gen Zers said that low pay was the main reason for job dissatisfaction, and that they can’t keep up with the cost of living when the pay is so low. On top of that, women make much less than men, so businesses inherently subtract more for being a woman. In an effort to escape this pitfall in the workplace, more young women are becoming entrepreneurs. 

Happiness

The unfair treatment of women in the workplace goes beyond the gender pay gap. According to the 2018 Harvey Nash Women in Technology: Building Momentum survey, 33% of women left their last job due to a negative environment, while only 23% of men left for the same reason. Similarly, 23% of women left due to unfair treatment, compared to only 13% of men. These two factors lead to unhappiness in the workplace and turn younger women away from big corporations. When women from Gen Z work for themselves, they don’t worry about being paid less than someone with the same title in business. They don’t have a concern about being treated unfairly because they make the decisions. With financial control of their businesses, women in the younger generation continue to make the switch.

Traits

Gen Z is the first generation raised with all technology. They are taught to seek more. Find new possibilities. Use creativity with everything they do. And most importantly to find happiness in what they do. With these fundamentals, they have a new desire to pursue their own answers. This kind of curiosity and drive is leaning more and more Gen Zers towards the life of entrepreneurship. With leadership skills, creativity, drive, and curiosity, many Gen Z women want more than a 9 to 5 job. That something for many is entrepreneurship.

This is just the beginning of younger generations taking over the entrepreneurial world. And in a recent survey of 6,000 participants born between 1997 and 2007, 53% hope to run their own business in ten years, while those in the workforce have a higher desire to own a business. So don’t be surprised if in the next few years you start to see more and more new businesses founded by some motivated young women.

This article was written during the GWS Summer Writing Workshop. Taught by the GWS Publication Team, the workshop hosted young journalists in grades 1 through 12, each with a passion for writing and learning. Over five weeks throughout the summer, students brainstormed, researched, outlined, drafted, revised, and ultimately produced an article about a topic related to women in business. Learn more about the workshop here.