Gen Z Women Drive Entrepreneurship Boom
The youngest generation of women is founding businesses at a higher rate than older demographics, according to a new survey. Factors like parenthood and a desire for flexibility appear to be significant drivers.
Women from the youngest generation, Gen Z, are establishing businesses at a significantly higher rate than other age groups, reveals a new survey from Gusto. While the overall number of businesses founded by women saw a dip in 2025, Gen Z women stood out with strong entrepreneurial activity.
Among women who started businesses in 2025, 47% belonged to the Gen Z cohort, an increase from 38% the previous year. Gen X women followed closely at 46%, millennials at 43%, and baby boomers at 23%.
Parenthood appears to be a particular driver for Gen Z women's entrepreneurship, with a notable gender difference. Gen Z women are twice as likely to be caregivers as their male counterparts. Nearly 20% of new Gen Z women entrepreneurs were parents, compared to 11% of men. Fifteen percent of female business owners cited parenthood as their motivation for starting a business, compared to just 1% of men.
Women have recently exited the workforce in record numbers, partly due to rising childcare costs. Entrepreneurship offers some women a pathway to control their own schedules and work more flexibly. Black women are also playing a significant role, with 69% of new Black-owned businesses in 2025 founded by women.
Interestingly, Gen Z women are less reliant on artificial intelligence than men. Only 2.4% of Gen Z female entrepreneurs stated they would not have started their business without AI, compared to 16.2% of men. The research suggests young women entrepreneurs depend less on technological advancements than men.