Five small business ideas that are creating opportunities for Gen-Z entrepreneurs

Gen-Z entrepreneurs are launching businesses at a faster rate than many expected, driven by technology, changing work patterns and growing access to digital tools.

A recent study by Gusto, a cloud-based HR, payroll and benefits platform, found that Gen-Z entrepreneurs accounted for 9 per cent of new businesses started in 2025, surpassing Baby Boomers, who represented 5 per cent. The findings mark the first time the younger generation has overtaken Baby Boomers in business creation.

The study also showed that seven out of 10 Gen-Z founders used artificial intelligence (AI) during the startup process, a figure that exceeded the overall average by more than 10 percentage points.

Read also: Nigeria’s Gen Z are changing how brands think about alcohol

As digital natives, many Gen-Z entrepreneurs are building businesses online. Here are five business ideas that are gaining attention among young founders.

1. TikTok Shop Management

The rapid growth of TikTok Shop has created opportunities for young entrepreneurs who understand the platform and its users.

In less than three years, TikTok Shop has become an important sales channel for many small businesses. According to research by Emarketer, about 215,000 sellers with annual revenue below $15 million used the platform in the United States, representing a 25 per cent increase from the previous year.

Many business owners still struggle to understand how TikTok Shop works or how to maximise its potential. Since Gen-Z users make up a large share of TikTok’s audience, entrepreneurs with knowledge of the platform can offer services such as account setup, product listing management, content planning and sales optimisation.

2. Social Media Consulting

Many companies want to connect with younger consumers but often lack a clear understanding of how social media audiences engage with content.

This gap has created demand for social media consultants who can help brands communicate more effectively online.

Gen-Z entrepreneurs can use their experience with digital platforms to guide businesses in creating content that reflects audience interests and discussions.

“Gen-Z’s definition of trust is different. They don’t trust logos or institutions. They trust people. They trust stories. They trust consistent behavior over polished branding,” notes Neeraj Sabharwal, founder of Trust3.AI.

As businesses seek stronger online engagement, social media consulting continues to present opportunities for young founders.

3. E-commerce Businesses

Creative entrepreneurs are increasingly turning their hobbies into online businesses.

Products such as handmade jewellery, artwork, customised gifts and 3D-printed items can be sold through digital marketplaces that connect sellers directly with buyers.

Platforms including TikTok Shop and Etsy provide access to established customer bases, making it easier for new businesses to reach consumers without investing heavily in physical retail locations.

The growth of online shopping has also made it possible for entrepreneurs to operate businesses from home while serving customers across different regions.

4. Financial Coaching

Financial coaching is emerging as another business opportunity for Gen-Z entrepreneurs with knowledge of budgeting, debt management and credit building.

A 2024 report from TransUnion found that Gen-Z consumers rely more heavily on credit cards and auto loans than other generations. This trend has contributed to rising debt levels and higher rates of missed payments.

Financial coaches can help clients develop spending plans, improve money management skills and work towards financial goals.

As more young adults seek guidance on handling personal finances, demand for these services is expected to continue growing.

5. AI Literacy Services

The increasing use of artificial intelligence across industries has created demand for people who can help businesses understand and implement the technology.

According to a 2025 report from McKinsey, demand for AI fluency in job postings has increased sevenfold over the past two years, making it one of the fastest-growing workplace skills.

Many businesses are still learning how to use AI tools effectively and safely. This has opened opportunities for entrepreneurs to provide training, advisory services and implementation support.

“More than three-quarters of businesses already using AI report higher productivity, yet most are still applying it to a narrow set of tasks,” says Simon Worsfold, head of data communications at Intuit QuickBooks.

“What is emerging is a large, underserved layer of advisory, implementation, and training services that small businesses need in order to scale their use of AI.”

As AI adoption expands, entrepreneurs who can bridge the knowledge gap may find growing demand for their expertise.