Since the pandemic, young people have become increasingly focused on achieving financial freedom. Traditional career paths that worked for previous generations no longer guarantee success, prompting many to explore entrepreneurship and stock trading as alternatives.
As of 31 December 2024, India boasts over 1.57 lakh startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT)—a significant rise from just 500 in 2016. This surge is a promising indicator for the Indian economy, with these startups generating over 15.53 lakh jobs since the launch of the Startup India initiative in 2016.
"Over the years, 5,000 startups have shut down. While this figure may seem relatively small in comparison, it raises an important question—are startups becoming more of a fleeting trend rather than well-structured business ventures? If so, the number of failures may rise in the years ahead."
Siju Rajan
Gen Z, often lauded for their digital prowess, innovation, and independent mindset, has been at the forefront of this entrepreneurial movement. Yet, despite their enthusiasm and potential, many young entrepreneurs face challenges that make long-term success elusive.
Expecting quick results
Growing up in the AI era, Gen Z is accustomed to instant gratification—whether it’s online shopping, Instagram likes, or ChatGPT responses. This “need for speed” seeps into entrepreneurship, leading many to expect immediate results. However, building a sustainable business requires time, patience, and resilience. Many give up too soon simply because they do not see instant profits.
Pursuing unrealistic business ideas
Creativity and AI skills are invaluable, but they sometimes lead to business ideas that lack real-world demand. Some entrepreneurs focus on futuristic or trendy concepts without validating whether people genuinely need them. The result? A “La La Land” business that struggles to progress beyond the idea stage. If it does not address a real problem, its chances of success are slim.
Too much motivation, no proper planning
Motivation is important, but diving into business after binge-watching motivational reels—rather than conducting proper research—is a risky move. Overconfidence often leads to neglecting crucial elements such as financial planning, competitor analysis, and scalability, all of which determine whether a business thrives or collapses.
Prioritising funding over business growth
Raising funds has become a status symbol. Many young entrepreneurs are more focused on impressing investors than on building a profitable business. However, a venture that depends solely on external funding, rather than generating genuine revenue, is unlikely to survive in the long run. Investors, too, are becoming increasingly cautious due to this trend.
Taking the wrong advice
Social media has made business knowledge more accessible, but it has also given rise to self-proclaimed “business gurus” dispensing questionable advice. Many Gen Z entrepreneurs follow viral trends that may not be relevant to their industry. Instead of blindly trusting influencers, it is essential to seek guidance from experienced mentors and credible professionals.
Success is not solely about launching a tech startup. Many MSMEs (Micro, Small & Medium Enterprises) are flourishing and attracting investors. What truly matters is sustainability—because, ultimately, a slow, steady, and well-planned business stands a far greater chance of long-term success than one built on hype.
