Gen Z Turns to Entrepreneurship as AI and Tough Job Market Erase Entry-Level Roles
Gen Z Embraces Entrepreneurship Amid AI and Job Market Woes

As artificial intelligence reshapes the corporate landscape and entry-level positions become scarce, a growing number of Gen Z workers are choosing to become their own bosses. Instead of waiting for traditional job opportunities, they are creating their own paths through entrepreneurship, often using AI tools to compensate for lack of experience.

From College to Self-Employment

Ashley Terrell, a 2024 graduate of the University of Hawaii, expected to land a marketing job after earning a degree in business administration. Instead, after months of applications, her only offer was a position at Home Depot. Disheartened, she turned to her YouTube channel, offering to create video content for brands for free. Eventually, Jamba Juice purchased one of her videos for social media ads. Now, she has built a portfolio that landed her a part-time marketing role at a distillery and a roster of clients.

“No one was offering me anything like what I wanted to do,” Terrell said. “So I just tried to see what I could do on my own.”

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The AI Factor

The job market for young workers is particularly grim. According to the Bureau of Labor Statistics, hiring in the U.S. has fallen to its lowest rate since 2020. Entry-level jobs are increasingly vulnerable to AI, and unemployment among 22- to 27-year-olds is at its highest since the pandemic. Daniel Zhao, chief economist at Glassdoor, notes that “entry-level workers are finding it difficult right now to get their foot on the ladder at all.”

But AI is also enabling entrepreneurship. Tools like Claude Code and Cursor allow young workers to take on tasks that previously required teams of engineers. Suhit Agarwal, a 2025 USC graduate, used AI to serve as a founding engineer for startups after failing to land a job at Google. One of his startups was acquired, and the experience helped him secure a role at a fintech company.

“All of a sudden, you’ve got to have some way to get up to the fourth rung of the career ladder,” said Joseph Fuller, a Harvard Business School professor. “One way to ascend the rungs? Make your own ladder.”

Forced Into Entrepreneurship

Shola West, 25, a media consultant in London, never planned to start her own business. But after being laid off in 2024 and facing a tough job market, she launched a brand consultancy. She now works with clients like Paramount and Sony Music. “I was kind of forced into it, given how the market was,” she said. “Now I have to prove to myself and everyone else that I can survive.”

Ethan Choi, a partner at Khosla Ventures, notes that expectations for entry-level workers have changed dramatically. His firm now uses AI to do work that associates once handled. “The ones getting jobs will be the ones who are building stuff,” he said.

From Intern to CEO

Some young workers are skipping the corporate ladder entirely. Celeste Amadon, 22, turned down an investment banking internship at JP Morgan to start Known, a dating app. After raising over $9 million in venture capital, she now runs the company as CEO. “It’s like having done an MBA,” she said.

Elijah Khasabo, 22, co-founder and CEO of Vidovo, previously worked at TJ Maxx. “What do I know about managing a marketing team? It’s all learned by doing,” he said.

Ownership Over Stability

Entrepreneurship comes with risks—most startups fail—but it offers a sense of control. “There is no guaranteed outcome with any job,” West said. “Working for yourself at least allows you some control over your fate.”

Francesca Albo, 29, co-founder of Puppy Sphere, left a biotech job to start her own company. “The old promise was stability. The new promise is ownership,” she said.

Even those who remain employed are exploring side hustles. A Fiverr report found that 67% of Gen Z workers want multiple income streams for financial security. Many see traditional employment as potentially obsolete and view AI integration as imperative.

As Gen Z navigates this changing economy, their choices may signal broader shifts. Aneesh Raman of LinkedIn argues that fixing the entry-level work crisis is key to fixing all work. “All our jobs are going to come up against this same wave of change sooner or later,” he said.

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