Gen Z founders are hiring while Boomers’ corporate America freezes out—‘I’ve already proven to myself that I can thrive in this’

The labor market for new entrants has become increasingly challenging for Gen Z, while corporate America dominated by older generations has slowed hiring. However, young founders are bucking the trend and expanding their teams even as others are cutting back. According to new data from the Q3 2026 Small Business Index, 46% of Gen Z and millennial business owners plan to increase their workforce in the coming year, compared to just 19% of baby boomer and older owners.

Young entrepreneurs are more confident about their business outlook and are willing to invest more, with 50% planning to boost their investments versus 18% of their older counterparts. Nearly three-quarters anticipate revenue growth, a stark contrast to the cautious approach of older business owners. This optimism stems from a "decoupling" of young founders' confidence and the current economic climate.

Gen Z owners are more likely to embrace technology and run their businesses efficiently, giving them an advantage over established institutions struggling to adapt to new innovations. Young people are redefining success by viewing entrepreneurship as a safer alternative to the uncertain corporate ladder, especially given their skepticism towards traditional institutions.

Nearly 38% of recent and upcoming college graduates surveyed are considering starting their own business, a shift from the traditional path of finding entry-level jobs and climbing the corporate ladder.