Gen Z wants to start businesses as applications hit record high: Study

Zach KaplanFri, May 29, 2026 at 5:14 PM UTC

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(NewsNation) — A new study found younger Americans are displaying a higher interest in becoming entrepreneurs, coinciding with a record number of business applications in 2025.

LendingTree surveyed 2,000 U.S. consumers and found a large amount (27%) say they’ve seriously considered starting a business over the past year. That figure jumps up to 51% among Gen Zers, aged 18 to 29.

Matt Schulz, LendingTree’s chief consumer finance analyst, said many young adults are drawn to entrepreneurship because they’re facing a challenging job market and seek greater financial freedom.

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“They see entrepreneurship as a way to diversify their income and make themselves less vulnerable if they suddenly lose their day job,” Schulz said. “Yes, many people who start a small business simply have entrepreneurship in their blood, but a huge number of them start businesses out of necessity rather than passion.”

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The study also found the number of Americans interested in starting a business fell to 37% among millennials, aged 30 to 45, and to 20% among Gen Xers, aged 46 to 61. Overall, men reported more interest than women (33% vs. 21%).

LendingTree’s analysis of U.S. Census Bureau data found 5.7 million business applications were filed in 2025, surpassing the previous record of 5.5 million set in 2023. Wyoming, Delaware and Florida had the highest rate of business applications per capita last year.

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Schulz believes the increased numbers show that despite “concerns about inflation, interest rates and economic uncertainty, there’s clearly a strong belief that entrepreneurship remains one of the best paths to financial independence and flexibility.”

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Source: “AOL Money”