Gen Z more likely to consider themselves entrepreneurs

A third of Americans consider themselves to be an “entrepreneur,” according to new research.

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

That’s compared to 29% of Gen X respondents and just 25% of baby boomers.

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

Another responded, “Someone who has drive and determination to put their business ideas into action and become successful.” A third simply said an entrepreneur is someone who’s “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%).

That’s despite a very similar number of men and women owning small businesses or having side hustles (36% vs. 34%) or wanting one in the future (44% vs. 46%).

Commissioned by Herbalife and conducted by Talker Research, the 2024 Entrepreneurial Index polled 10,000 respondents across 12 countries, including 2,000 in the U.S.

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

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

That’s compared to 50% of Gen X respondents and only 35% of baby boomers who reported being confident, considering today’s economy.

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

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

That said, despite these worries, younger generations especially are still working toward 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 number 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 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 make money with inflation came out as No. 1 (32%).

That was followed by entrepreneurs struggling to retain customers (25%) and their business or side hustle requiring more hours than they can reasonably work to stay afloat (23%).

Respondents also said they’re not earning enough money from their business or side hustle (23%) and they’re having difficulty balancing growth and quality (19%).

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

Those in the U.S. were also asked about the upcoming presidential election, and how that ties into their thoughts on the economy, small businesses and side hustles.

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

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

Survey methodology:
This random double-opt-in survey of 10,000 general population respondents (in 12 countries, including 2,000 in the U.S.) 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).