The point of departure was a focus group with representatives of Gen Z Founders Estonia. This organization connects and supports young entrepreneurs in Estonia, aiming to leave a mark on the world. Through the Gen Z community, young founders share ideals and aspirations, foster friendships that provide emotional support during the challenging entrepreneurial journey, and expand their networks through ecosystem partnerships.

The group included Estonian Gen Z founders such as Bruno Järvik, Kevin Akkermann, Helena Villand, Domenik Djatšuk, Carmen Tiffany Tuisk and Uku Joost Annus. All were either recent high school graduates or undergraduate students with entrepreneurial experience. Their insights shed light on the challenges and opportunities faced by young entrepreneurs today.

Gen Z Entrepreneurs’ Challenges

Young entrepreneurs often face unique challenges, such as not being taken seriously by clients, partners, or even employees. At times, generational differences in communication can feel like speaking entirely different languages. However, their perceived naivety can also work in their favor, earning them support and empathy due to their youth and growth potential. Society’s growing acceptance of young entrepreneurs and recognition of their innovative contributions further bolster their efforts.

While advancements in technology have made launching a business easier, they have also heightened competition. Most straightforward digital products and services are already widely available, leaving little room for simpler innovations. Developing groundbreaking startups often requires significant technological and scientific resources, which can be beyond the means of many young founders.
The increasingly complex external environment, including changes in taxation systems and hyper-dynamic markets, poses additional risks. Decision-making becomes particularly challenging for less experienced entrepreneurs, often feeling like guesswork. Gen Z founders suggest policymakers introduce tax-free buffer periods for young entrepreneurs to ease their transition into business systems. Entrepreneurs, on the other hand, can benefit from setting smaller, achievable targets while keeping their ultimate goals in focus.

Educational institutions have significantly improved their support for entrepreneurship in recent years by introducing entrepreneurship curricula and establishing centers to assist student entrepreneurs. However, these efforts often overlook the entrepreneurial achievements of students in grading and ranking systems. Furthermore, the curricula’s theoretical focus leaves limited room for developing practical entrepreneurial competencies. Students must set priorities and manage their time effectively to bridge this gap themselves.

Gen Z Drivers to Become Entrepreneurs

While the literature often classifies entrepreneurial drivers into necessity and opportunity, Gen Z entrepreneurs provide reflective insights into their motivations. They see entrepreneurship as an avenue for human excellence, akin to other markers of distinction such as physical strength, intellect, charm, and status. For them, entrepreneurship is a way to prove their capability to themselves and others.

Entrepreneurship also represents freedom and control over one’s life. The journey offers continuous progression, personal growth, and immense self-fulfillment as businesses succeed and make a positive impact. Gen Z entrepreneurs view solving real-world problems as the main impetus for entrepreneurial endeavors.

Moreover, entrepreneurship serves as an alternative to traditional education-employment pathways. With examples of successful dropouts and students launching ventures, degrees are no longer prerequisites for entrepreneurial success. Economic uncertainty and political instability further motivate Gen Z to rely on entrepreneurship as a safety net and a long-term foundation for their lives.

Gen Z’s Definition of Entrepreneurship

For Gen Z, entrepreneurship involves making smart decisions at the right time and solving actual problems rather than merely creating profit-driven businesses. It encompasses creating something from scratch or elevating value in diverse aspects of life.

They see entrepreneurship as broader than an economic activity. Surrounding oneself with talented, inspiring individuals on a shared mission to create impact—whether in startups, music bands, or innovation circles—is also entrepreneurship. However, they acknowledge the risks, as high market uncertainty and potential consequences of decisions can make entrepreneurship as addictive as it is rewarding-comparable to cocaine for rats. For many, it embodies professional, economic, and personal freedom, including the ability to voice opinions without fear of repercussions.

Gen Z’s Views on the Future of Entrepreneurship

While the financial aspects of entrepreneurship are unlikely to change soon, Gen Z foresees a rise in social and sustainable entrepreneurship as younger generations prioritize environmental and societal concerns.

Innovation and production demands will increase as consumers develop shorter attention spans and higher expectations. While startups may gain an edge over large corporations in these areas, they will also face resource constraints.

Artificial intelligence (AI) remains an ambiguous factor in entrepreneurship’s future. Gen Z anticipates AI will replace repetitive or cognitive jobs while leaving manual labor relatively untouched. This shift could widen the gap between rich and poor, squeezing the middle class further. Although AI might trigger cycles of deskilling and reskilling similar to those of the Industrial Revolution, such changes may take years. Entrepreneurs and startups can thrive by focusing on the human and emotional aspects of customer experiences, distinguishing themselves from AI-driven processes.

Gen Z’s perspectives illuminate both the challenges and opportunities of modern entrepreneurship. Their unique outlook and aspirations promise to shape the entrepreneurial landscape in innovative and impactful ways.