- Gen Z will be a major player in entrepreneurship, with 45% very likely to start a venture.
- Young people face risks of being your own boss, according to Bloomberg.
- Here's how Gen Z founders are managing loneliness, financial stress, and mental health.
Since hundreds of thousands of employees lost their jobs, reduced their hours, or cut out their commute during the pandemic, entrepreneurship has been on the rise. In fact, more than 10 million new businesses have been created since the start of 2020.
The interest in becoming your own boss has only grown, especially among Gen Z.
These young founders are playing a major part in the entrepreneurial movement. In fact, 45% of Gen Zers are very or extremely likely to become founders, according to a 2021 survey of 1,509 Gen Zers by Ernst & Young. But the realities of starting a company aren't always what they seem.
While it can be exhilarating to launch something on your own, a recent Bloomberg article warns Gen Z to keep their day jobs because "being your own boss is hard."
To be sure, difficult aspects of a business – like paying self-employment tax and your own insurance, and lacking a community – are often overlooked. But even with the pitfalls that come with starting your own business, young founders do find success.
Here, three Gen Z founders share how they manage stressors like finding community, lacking experience, and making room to improve their mental health.
Building community helps mitigate loneliness
Isolation is a reality for many founders, especially those working solo or remotely.
"Being your own boss can mean long hours and many days of working entirely without real human interaction," Lowry wrote in her article.
While some entrepreneurs do experience that loneliness, others have found solutions. For example, social media can be a great way to connect with customers, potential hires, or fellow founders. Alyssa Nguyen, the founder of graphic design business ATNN design, relies heavily on her online community to feel less isolated as a founder, she said.
"Being good at Instagram is a really underrated tool as a business owner," Nguyen, 23, previously told Insider. "I don't just use it for marketing, it's where my whole creative community is. It's where I've made my friends."
Finding help when needed prevents mistakes
Investing in growth can be tricky as a young founder, Lowry writes. "Do you have the financial resources, time, patience and managerial skills to outsource and train someone?" she asks.
While imposter syndrome and lack of experience are inevitable for many Gen Zers, there are ways to learn and delegate when necessary. It can be helpful to determine which aspects of running the business are better off in a teammate's or coworker's hands, said Lauriel Mathis, the 23-year-old founder of virtual assistant and coaching business Lauriel Arkeah Co.
That's why she hired an accountant and financial advisor to help her with the area of the business she was least comfortable with: money.
Her advisor has helped her determine her own salary, decide future investments, and with filing taxes.
Focusing on mental health supports the company's success
Despite Gen Z's push for better mental health practices, the role of a founder is still a taxing job, often requiring long and odd hours. Which makes the lack of "emotional and relationship benefits of being
part of a workplace, like mentorship" noted in Lowry's piece especially important to recreate.
Michael Yan, 22-year-old co-founder of job search platform Simplify, has maintained his own balance as a founder by working with an executive coach to manage stress, burnout, and difficult company conversations, he said.
"If you're not prioritizing your own health it's hard to prioritize the success of the company," he said, adding that he's worked with his coach to determine the most beneficial work, fitness, and sleep schedule, and how to manage teams that are older than him.
"Ultimately a lot of it is tied together," Yan said. "It's important to keep that feedback loop rigid by keeping yourself healthy both mentally and physically."
