Gen Z Side Hustles, 1.5M New Biz Apps, AI Optimism | Numbers Scream Ep. 19

This week's "Numberscream" brings good news about the American entrepreneurial spirit, even amidst economic headwinds. Various statistics indicate that entrepreneurs are actively fighting and working to succeed. Gen Z shows a strong entrepreneurial drive, with 43% planning to start a business. Born between 1997 and 2012, Gen Z are digital natives, comfortable with technology. This 43% figure is double the rate of Gen X. Furthermore, 57% of Gen Z operate a side hustle alongside a day job, demonstrating a proactive approach to creating opportunities in the current economy. Unlike Baby Boomers, only 21% of whom built side hustles, Gen Z is highly industrious. Gen Z solopreneurs can expect to make about $10,000 from side hustles in year one, growing to $60,000 by year five. This could mean a combined income of $140,000 for someone earning $80,000 from their main job. Impressively, 35 Gen Z billionaires are on the Forbes 2026 list, collectively holding $92.4 billion. A significant 80% of Gen Z entrepreneurs report their businesses are purpose-driven, prioritizing helping others and filling positive gaps, not just seeking profit. New business applications are a powerful indicator of this entrepreneurial surge. Federal Reserve economic data shows a significant spike in applications after the 2008 financial crisis, and an even more dramatic increase after the COVID-19 recession in 2020. People who were furloughed or facing uncertainty began starting side hustles and obtaining business licenses. The number of new business applications reached a whopping 1.5 million in Q1, demonstrating that the entrepreneurial flame ignited during COVID has not dwindled but continues to grow. About one-third of these are "employer businesses," meaning they anticipate hiring employees. This signifies people are trying and not giving up, reflecting the American spirit of ingenuity. Florida set a new record in February with 69,531 new business applications, the highest amount for any state in any single month ever, according to the United States Census Bureau. This state-by-state data validates the overall trend of growing entrepreneurship. The survival rate for new businesses is also surprisingly high. While historical statistics often cited a 50% failure rate in year one, current data from Lending Tree indicates an almost 80% survival rate after one year (78%). This rate drops to 66% after two years, 54% after three, 53% after four, and 51% after five years. Even after ten years, 35% of businesses survive. This improved survival rate is attributed to the internet's ability to provide access to sales, research, and expert advice, making it easier to start and manage a business. While caution is still advised regarding personal savings, the resources available now reduce the risk of bankruptcy or closure. Finally, entrepreneurial optimism about Artificial Intelligence (AI) is notable. Despite popular media often focusing on negative aspects like job loss, 78% of entrepreneurs are optimistic about AI. They view AI as an enabler and empowerer for their businesses, capable of assisting with research, customer service, and analysis, rather than a threat to jobs. Another 14% are in a "wait and see" stance, with only 9% expressing "doom and gloom." This positive outlook suggests entrepreneurs see AI as a tool to streamline tasks, potentially reducing initial costs and the need for as many employees, further contributing to higher survival rates. In conclusion, despite a tough economy with expensive gas and oil, the American entrepreneurial spirit is thriving. People are actively creating opportunities, driven by necessity and a desire to make a difference, rather than waiting for external help. This resilience and ingenuity define the current American story.