Gen Z is more likely than their parents, grandparents to be entrepreneurs

A third of Americans consider themselves to be “entrepreneurs,” according to a new study.

The survey found that younger generations are slightly more likely to consider themselves entrepreneurs – 36% of Gen Z and 39% of millennials.

This compares to 29% of Gen X respondents and only 25% of young adults.

Respondents were also asked how they would define “entrepreneur”. One respondent said: “Someone who is willing to put it all on the line for their dream. They will be willing to risk it all.”

Another replied: “Someone who has the strength and determination to put their business ideas into action and become successful.” A third simply said that an entrepreneur is someone who is “fearless.”

Not only were younger generations more likely to consider themselves “entrepreneurs”—but men were more likely to identify with the term than women (38% vs. 27%).

This is despite very similar numbers of men and women who own small businesses or have side hustles (36% vs. 34%) or want one in the future (44% vs. 46%).

Commissioned by Herbalife and conducted by Talker Research, the Entrepreneurship Index 2024 surveyed 10,000 respondents in 12 countries, including 2,000 in the US.

The survey, conducted ahead of World Entrepreneur Day, looked across generations of respondents from all countries to see who was most optimistic about potential entrepreneurial pursuits.

The results revealed that younger generations are more positive: 69% of Gen Z and 63% of millennials surveyed were optimistic about entrepreneurial endeavors, either for themselves or in general.

This compares to 50% of Gen X respondents and only 35% of young adults who reported being confident, given today’s economy.

But this optimism does not mean that people are not worried about the current state of the economy. Fifty-nine percent of respondents are currently worried, and this was consistent across generations.

And for those not interested in starting a small business or side hustle this year, concerns about the state of the economy were the top reason (25%).

However, despite these concerns, the younger generations in particular are still working towards their goals. Not only were younger respondents more positive about entrepreneurial pursuits, but they were also more likely to have a small business or an active side hustle.

Four in 10 Gen Z and 41% of millennials have one or the other, compared to 31% of Gen X and 19% of baby boomers surveyed.

“Younger generations are embracing side hustles and starting small businesses due to a variety of motivating factors, including economic uncertainty, a desire for flexibility and a greater interest in pursuing a passion or hobby,” said Frank Lamberti, chief commercial officer for Herbalife. “Network marketing, in particular, can help meet these needs and offer low start-up costs while reducing the stress and anxiety that can be associated with starting a business.”

For those with a small business or side hustle, the survey asked respondents what challenges they’re facing right now — and the ability to monetize inflation came in as the no. 1 (32%).

This was followed by entrepreneurs who struggle to keep clients (25%) and their business or side hustle that requires more hours than they can reasonably work to stay afloat (23%).

Respondents also said they are not making enough money from their business or side hustle (23%) and that they have difficulty balancing growth and quality (19%).

And 63% of those with a small business or side hustle said they put more time and effort into it this year than in previous years to keep it going.

Those in the US were also asked about the upcoming presidential election and how it relates to their thoughts on the economy, small businesses and side hustles.

Seventy-four percent of respondents plan to vote in the November election, and of those, 44% are concerned that whoever wins the election will negatively affect the economy, causing small businesses to close.

“Staying informed and adaptable is key to effectively navigating the changing landscape,” added Lamberti.

Survey methodology:

This random two-choice survey of 10,000 general population respondents (in 12 countries, including 2,000 in the US) was commissioned by Herbalife between June 7 and June 19, 2024. It was conducted by market research company Talker Research , whose team members are members of the Market Research Society (MRS) and the European Society for Opinion and Marketing Research (ESOMAR).