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Gen Z is shifting from the corporate ladder to the small business arena

More Sun Devils turn to starting their own businesses in the face of a challenging job market

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Students study under the Dean's Patio at the W. P. Carey School of Business on Monday, Sept. 30, 2019, in Tempe.

For a growing number of college students about to enter corporate America, the traditional nine-to-five is losing its appeal. 

The entrepreneurial fever is sweeping the generation, with a report from Gusto suggesting that Gen Z entrepreneurs began to account for a larger share of startups than baby boomers for the first time in 2025.

For some students, the independence inherent in running their own businesses has been a compelling reason to start their own ventures. 

"Nine-to-fives would be more brutal; you have a boss and you have someone that has to be on you all the time," Olivia Ageno, a junior studying printmaking, said. "When you're an entrepreneur, you could be your own boss."

READ MORE: A look at Arizona businesses and the ASU students behind them 

Jaye Farthing, a graduate student studying justice studies, said another huge factor in the increase of small businesses is the current state of the job market. Farthing said many job hunters fresh out of university try to "get in" through entry-level positions, but do not qualify due to lack of experience.

"Go to college, that's why you get a career," Farthing said. "But you can't even get a career if you can't have the experience you need."

Compared to working a corporate job, students feel they can better tie owning a small business to their education. For Abigail Whiting, a junior studying management and business law, her small business selling resin and crochet has offered invaluable real-world experience that complements her studies. 

"It has been a really good parallel to what I'm learning in my classes," said Whiting. "It's hand in hand with exactly what I do, but on a smaller level, it has given me a much more unique perspective on everything."

Compensation issues are another key factor in the increase of small businesses among Gen Z.

"A lot of Gen Z doesn't want to go into corporate, be used for more hours and not get paid what they should be,"  Whiting said. "Small businesses reflect that because then you're running your own time, you're respecting yourself and you're doing exactly what you have the energy and time to do."

Alongside controlling their business and what they sell, Gen Zers can control what they make. 

"Running a small business would be a way to supplement income, pay for school or save up for something (Gen Zers) have been dreaming of owning," Farthing said. "Or even just have enough money to get by and not worry about whatever food is in their dorm fridge."

A Lending Tree analysis of government data from February 2026 suggested that just over one in four Gen Z workers earns enough to live alone comfortably. Being a full-time student can make it even more difficult to make ends meet. 

"It's about the fact that the economy that we're in for college is so bad that we have to have multiple sources of income. I go to work, and then I also do this business," Whiting said. "So it's a way for me to make more money on my own time, which is very important for college."

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Gen Z seems to be transitioning away from the corporate world, not only shifting to owning small businesses, but also supporting them. 

"With the influx of Gen Z entrepreneurs, I'd say in the long run there will probably be a bigger shift toward small businesses than big corporations," Farthing said. "Solely because the small businesses feel more heart and soul compared to a big corporation where they don't really care about you." 

Edited by Sam Troester, Alan Deutschendorf III and Kate Gore. 


Reach the reporter at jhamil33@asu.edu and follow @jhamilton_media on X.

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Jen HamiltonThe Echo Reporter

Jen Hamilton is a photographer and Echo reporter at The State Press. They've also worked with Blaze Radio production and Cronkite News as a volunteer. This is their third semester with The State Press. 


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