If Gen Z in Nigeria had a motto, it might be: “If the system won’t employ us, we’ll build our own system.”
With 6.5% of young Nigerians being unemployed in the second quarter of 2024, according to a report by the National Bureau of Statistics, imagine the total figure for the full year.
It’s no surprise that this generation has taken up entrepreneurship with the zeal of survivalists in an apocalyptic movie.
They don’t just dream of office cubicles or nine-to-five stability—they create their own brands, flood social media with great campaigns, and proudly wear the badge of “self-made.”
Nigeria’s Gen Z population, born between 1997 and 2012, is definitely giving a new look to the entrepreneurial space. Over 60% of Nigeria’s population are under the age of 25 and this demographic is leveraging technology, creativity, and social awareness to build businesses that challenge traditional notions of success.
They prioritize social impact, work-life balance, personal fulfillment and community-driven initiatives.
They often adopt funding strategies, such as crowdfunding and angel investments, to support their businesses and statistics show that startups led by young entrepreneurs have higher growth rates and better resilience to market fluctuations.
Hence, if these entrepreneurial moves are built on sustainable foundations, and aren’t just a creative response to economic challenges, then this population has a long way to go in building resilient industries that can withstand future economic instabilities.
The Rise of Gen Z Entrepreneurs
Several factors contribute to the rise of Gen Z entrepreneurs in Nigeria, including technology access which has been a major driver, with increased smartphone penetration and social media platforms like Instagram, TikTok, and Twitter providing direct access to target audiences.
Economic challenges also contribute, as the lack of formal job opportunities has made entrepreneurship a survival strategy for many young Nigerians.
We definitely won’t leave out cultural transitions. Unlike older generations that value traditional careers, Gen Z celebrates the hustle culture and prioritises financial independence over conventional career paths.
According to Statista, Nigeria had over 103 million internet users by January 2024, with 90% of them being under the age of 35. This has enabled a surge in digital entrepreneurship, with over 75% of SMEs now using social media for marketing.
How Gen Z is Changing the Meaning of Success
Gen Z entrepreneurs focus on personal branding, social media influence, and niche markets. They prioritise impact over profit, with many addressing social issues like mental health, education, and climate change alongside their business goals.
Their approach is redefining what it means to be successful, challenging the traditional belief that wealth accumulation is the only metric that matters.
One example is Timilehin Bello, founder of Media Panache, who turned his passion for social media interactions into one of Nigeria’s leading PR firms.
Similarly, emerging TikTok entrepreneurs are using the platform to sell thrifted fashion items or provide content that garners sponsorships, showing how Gen Z leverages technology to create income streams.
Unlike traditional markers such as wealth accumulation or formal recognition, Gen Z entrepreneurs measure success through their online following, social impact, and lifestyle choices. They can use technology and creativity to carve out unique spaces for themselves revealing what it means to succeed in Nigeria today.
Challenges They Face
Nigeria’s poor infrastructure is a big challenge to Gen Z entrepreneurs. High costs of the internet, with data plans consuming up to 10% of the average monthly income.
Unreliable electricity also affects productivity and increases the costs of operations, forcing many young business owners to find alternative solutions to sustain their operations.
Access to financing is another obstacle. Traditional financial institutions are reluctant to fund small businesses run by young entrepreneurs, forcing them to rely on personal savings or crowdfunding. But it’s a good thing that several organisations are taking this up, supporting youths to scale higher.
Again, social and generational perceptions are also challenging. While Gen Z’s entrepreneurship is celebrated within their circles, older generations often dismiss them as unsustainable or unserious. This is especially true for businesses centred around social media or content creation, which some perceive as lacking longevity.
The Sustainability Question
Even with their innovative mindset, many Gen Z businesses face systemic challenges that threaten their sustainability. According to a 2024 SME Development report, only 45% of Nigerian startups survive their first five years. Inflation and policy issues add pressure to these businesses, making it difficult for many to scale.
However, Gen Z entrepreneurs show commendable adaptability. They often pivot their businesses or find alternative revenue streams through digital tools and innovative strategies. While this resilience is commendable, the question is whether it will be enough to counter the systemic issues that continue to afflict the Nigerian business environment.
Hence, for young entrepreneurs, formalising their businesses by registering with the Corporate Affairs Commission (CAC) and adhering to tax regulations will boost credibility and open doors to potential funding.
Leveraging mentorship programs and partnerships with older entrepreneurs could also provide stability and guidance, enabling their businesses to thrive in the long term.
For policymakers, there is a need to expand digital infrastructure and reduce internet costs to support more young entrepreneurs. Introducing startup grants or low-interest loans for young founders could stimulate growth in this demographic, providing them with the support they need to succeed in the challenging economic environment.
Gen Z entrepreneurs are undeniably changing the meaning of success in Nigeria. Through their ingenuity, resilience, and digital fluency, they are enhancing the country’s economic history.
So the question: ‘Will their innovations withstand the test of time, or will systemic issues hold them back?’
