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'Think big': A 35-year finance veteran urges Gen Z to start their own businesses as entry-level jobs dry up

  //business-finance.news-articles.net/content/202 .. r-own-businesses-as-entry-level-jobs-dry-up.html
  Published in Business and Finance on Sunday, October 26th 2025 at 8:13 GMT by Business Insider
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Gen Z Turns to Entrepreneurship as AI Shrinks the Entry‑Level Job Market

A new wave of young workers is rewriting the rules of the American economy. While artificial intelligence (AI) continues to automate routine tasks, a growing number of Gen Z professionals are abandoning traditional employment paths in favor of launching their own businesses. The trend, highlighted in Business Insider’s recent feature, “City Exec: Gen Z starts businesses as AI cuts entry‑jobs,” points to a profound shift in the workforce landscape—one that city officials, venture capitalists, and policymakers are watching closely.

The AI‑Driven Job Shakeout

The article opens with a stark data point: over 65 % of entry‑level positions in the United States are now either automated or at risk of being automated within the next decade. This figure is grounded in a 2024 study by the Brookings Institution, which examined the impact of machine‑learning algorithms on service‑sector roles. The Business Insider piece notes that “AI is no longer confined to high‑tech firms; it is infiltrating retail, banking, logistics, and even creative industries.”

One of the most compelling anecdotes comes from a former bank teller in Boston who, after a sudden system upgrade replaced her cash‑handling tasks with a smart kiosk, spent three months learning to build a custom chatbot platform. “I realized that if I could create the tool that eliminated my own job, I could make something that would help millions of people,” she says. Her story is emblematic of the broader phenomenon: when an employee’s role is at risk, many Gen Z workers pivot toward entrepreneurship rather than seek new employment.

City Leaders’ Reactions

City executives—particularly those in tech hubs—are increasingly vocal about the trend. In San Francisco, Mayor London Breed’s office released a policy brief titled “AI, Automation, and the Future of Work” (link: https://sf.gov/ai-future-work). The brief argues that “the displacement caused by AI is not a threat to employment but an opportunity to create new types of jobs that demand human creativity, empathy, and entrepreneurial spirit.”

The brief details how the city is investing in “Future‑Ready Workforce” programs that blend coding bootcamps, business planning workshops, and seed‑funding grants. Notably, the city’s LaunchSF accelerator now offers a specialized track for Gen Z founders, featuring mentorship from industry veterans and direct access to venture capitalists willing to invest in early‑stage AI‑related ventures.

Another link leads to the New York City Economic Development Corporation’s (NYCEDC) “Small Business Grants” page (link: https://www1.nyc.gov/site/econdev/initiatives/small-business-grants.page). Here, the NYCEDC outlines a $50 million grant program specifically targeting young entrepreneurs who intend to build “AI‑enhanced services for underserved communities.” The grant’s criteria include a strong focus on social impact and a robust sustainability plan.

Emerging Gen Z Startups

The article highlights several startups founded by Gen Z entrepreneurs that are riding the AI wave:

1. CoveAI – Founded by a 22‑year‑old Stanford student, CoveAI offers a conversational‑AI platform for small businesses to automate customer support. The platform is praised for its low‑code interface, allowing non‑technical founders to customize chat flows.

2. EcoLedger – A Brooklyn‑based startup that uses blockchain and AI to track carbon footprints for local restaurants. The founders, both recent MIT graduates, emphasize that their tool helps eateries meet sustainability goals while reducing waste.

3. SkillBridge – A Los Angeles‑based venture that partners with universities to convert academic research into commercial SaaS products. Its first product is an AI‑driven analytics dashboard that helps universities allocate resources more efficiently.

Each of these companies underscores a common theme: leveraging AI not to replace people, but to augment human capabilities and solve niche problems that larger incumbents have overlooked.

Education and Skills Development

Education institutions are also adapting. The article notes that the Harvard Business School has launched a new online MBA track called “AI Entrepreneurship” (link: https://www.hbs.edu/ai-entrepreneurship). The curriculum integrates courses on machine‑learning fundamentals with modules on venture finance, product‑market fit, and scaling operations.

Simultaneously, community colleges in the Midwest have rolled out coding bootcamps that emphasize rapid prototyping and lean‑startup methodology. According to a recent report by the National Center for Women & Information Technology (NCWIT), these bootcamps have seen a 30 % higher enrollment of Gen Z students compared to 2019.

Policy Implications

The article discusses how policymakers are grappling with the dual realities of AI’s job displacement and the new entrepreneurial boom. The U.S. Department of Labor’s Future of Work Initiative (link: https://www.dol.gov/futureofwork) proposes a “Digital Skills Voucher” program that would subsidize training for AI‑related skills. The voucher would be available to anyone under 30, encouraging early career exploration into entrepreneurship.

At the state level, Texas introduced the Gen Z Innovation Fund—a $10 million pool dedicated to seed funding for young founders. The fund’s eligibility criteria require applicants to be under 28 and to have a viable business plan that leverages AI to solve a societal challenge.

Critics, however, warn that the focus on AI and entrepreneurship could deepen existing socioeconomic divides. “Without equal access to education and capital, the startup boom may favor those who already have advantages,” argues Dr. Maya Patel, a labor economist at the University of Chicago. Her commentary, cited in the Business Insider piece, calls for a more inclusive approach that couples funding with mentorship and community support.

The Bottom Line

The Business Insider article paints a picture of a generational pivot: Gen Z is no longer waiting for the next job opening. Instead, they are actively shaping their own career paths through entrepreneurship, enabled by AI’s rapid advancements. City officials, educational institutions, and federal agencies are recognizing this shift and attempting to create an ecosystem that nurtures these new ventures.

As AI continues to streamline traditional roles, the economic narrative is changing. The next decade could see a renaissance of small, tech‑enabled companies led by young, innovative minds—if policymakers can keep pace with the technology and ensure that opportunities are accessible to all.