The #1 Leadership Skill for Young Entrepreneurs (It’s Not What You Think)
- nurysotelo4
- Sep 29
- 7 min read
Introduction: Why So Many Startups Fail—And Why Gen Z Still Jumps In
If you’ve been dreaming of launching your own business, you’ve probably already heard the scary statistics:
20% of new businesses fail within two years.
45% fail within five years.
By year ten, 65% are gone.
Depressing, right?
But here’s the twist: even knowing the odds, more young people than ever are diving headfirst into entrepreneurship. Gen Z (born between 1997 and 2012) isn’t scared off by failure rates. In fact, they’re fueled by them. According to a 2023 Square study, more than 54% of Gen Z respondents want to start their own business someday. And many of them already have.
Why? Because Gen Z has grown up in a hyper-connected, always-on world. You’ve never known life without the internet, TikTok, YouTube tutorials, and access to millions of potential customers at your fingertips. You’ve also seen traditional career paths collapse: inflation, layoffs, student debt, and the constant churn of “safe” jobs disappearing overnight.
So instead of playing it safe, you’re betting on yourselves.
The question is: how do you make sure your bet pays off?
Here’s the spoiler: the skill you need most to succeed isn’t the one you think. It’s not marketing. It’s not coding. It’s not even raising money. The number one leadership skill that separates successful young entrepreneurs from the rest is far less glamorous—but infinitely more powerful.
And if you master it early, you’ll put yourself in the small percentage that not only survives but thrives.
Chapter 1: The Rise of Gen Z Entrepreneurs
Let’s start with the good news. Gen Z is the most entrepreneurial generation in history. Here are the facts:
67% have skipped or considered skipping college to pursue entrepreneurship.
73% of young founders already rely on their business as their main source of income.
62% of Gen Z businesses are less than two years old—meaning most are still in the experimentation phase.
84% plan to launch a business in the next five years.
That’s not just optimism—that’s action.
Why now? A few reasons:
Economic turbulence: Gen Z has lived through a global financial crisis, a pandemic, inflation spikes, and the rise of AI. The message is clear: stability is a myth.
Digital advantage: You grew up as digital natives. Building a Shopify store, editing a TikTok, or designing a logo on Canva takes you minutes—not months.
Role models your age: From Emma Chamberlain building a coffee empire to teens launching six-figure e-commerce stores, Gen Z doesn’t have to look far for proof that it’s possible.
💡 Mini story: In 2021, 18-year-old Maya Penn was named to Oprah’s SuperSoul 100 list. She started her first eco-fashion brand at age eight, grew it with Etsy and YouTube tutorials, and now runs multiple businesses while speaking at TED Talks. If an eight-year-old can do it, what’s stopping you?
Chapter 2: The Harsh Reality—Stats You Can’t Ignore
Before we get carried away, let’s ground ourselves. Entrepreneurship is exhilarating, but it’s also brutal. Here are the cold facts from the U.S. Bureau of Labor Statistics and Harvard Business Review:
Only 18% of first-time entrepreneurs succeed.
55% of entrepreneurs struggle to reach customers.
54% cite financing as their biggest roadblock.
51% blame market conditions for failure.
Translation: starting a business isn’t about having the “next big idea.” It’s about surviving long enough to test, tweak, and refine your idea until it actually works.
And here’s the kicker: what most people think is the most important skill—like coding, marketing, or fundraising—isn’t enough on its own.
This brings us to the hidden leadership superpower you need to build.
Chapter 3: The Surprising #1 Skill You Need
Victor Green, creator of Newpreneurs (a show that helps young founders access funding and mentorship), was asked what single skill every young entrepreneur should focus on first. His answer shocked everyone:
Research.
Not charisma. Not pitching. Not branding. Research.
Here’s why:
“The most important skill for any entrepreneur is to carry out extensive research. This ensures your business idea fulfills a need in the marketplace and improves people’s lives.” – Victor Green
Think about it. Most failed startups didn’t crash because the founders were lazy. They failed because they built something nobody actually wanted.
Research saves you from wasting months—or years—on a dead-end idea. It forces you to validate your vision with data, not just vibes.
What “real research” looks like for Gen Z founders:
Surveys & polls: Use Instagram Stories, TikTok polls, or Google Forms to test demand.
Customer interviews: Talk to 20 real people in your target market before building anything.
Competitor audits: What are similar brands doing well—or screwing up?
Trend spotting: Use tools like Exploding Topics, Google Trends, or even TikTok search to see what’s blowing up.
💡 Case study: Before Airbnb was Airbnb, the founders researched whether people would pay to crash on strangers’ air mattresses. They tested the idea during a San Francisco design conference when hotels were booked. Their “research” was renting out their own living room—and it worked. Today, Airbnb is worth over $90 billion.
Chapter 4: Leadership Isn’t About Titles, It’s About Connection
Here’s the second surprise: leadership for young entrepreneurs isn’t about bossing people around. It’s about creating connection.
Why? Because people don’t buy ideas—they buy into people.
Your co-founder sticks around not because of equity, but because they believe in you.
Your first customers support you not because you’re perfect, but because they trust you.
Your mentors help you not because you’re experienced, but because they see your authenticity.
In an age where AI can spit out content, ads, and even strategies, what can’t be automated? Human connection.
Practical ways to lead with connection:
Be transparent with your wins and failures on social media.
Treat your first 10 customers like royalty—give them access, feedback loops, and gratitude.
Ask for help early and often; most people love mentoring if you show humility.
💡 Mini story: Ben Francis, founder of Gymshark, started as a 19-year-old screen-printing T-shirts in his garage. What set him apart? His authentic connection with fitness YouTubers. Instead of paying for ads, he sent free gear and built relationships. Today, Gymshark is worth $1.5 billion.
Chapter 5: AI—Friend, Foe, or Tool?
Let’s be real: AI is everywhere. But should you, as a young founder, lean on it or fear it?
The answer: use it as a tool, not a crutch.
AI can:
Help brainstorm content ideas.
Summarize competitor websites.
Draft rough pitches or emails.
AI cannot:
Validate your market.
Build genuine trust.
Replace your creativity or instinct.
As Victor Green warns:
“AI remains largely an unknown quantity at this stage. While valuable, its applications are still limited for everyday entrepreneurs.”
So yes, use ChatGPT to draft your website copy—but don’t forget to test it with real people before you launch.
Chapter 6: Embracing Failure Without Letting It Break You
Let’s face it: most of you will fail at some point. And that’s not just okay—it’s necessary.
Spanx founder Sara Blakely credits her success to “failure Fridays,” where her dad encouraged her to share what she failed at each week.
Elon Musk had rockets explode before SpaceX finally succeeded.
Colonel Sanders was rejected over 1,000 times before someone said yes to KFC.
The difference between those who succeed and those who quit? They see failure as feedback.
Victor Green puts it simply:
“Recognizing when an idea is not working requires maturity and honesty, but it is crucial to the entrepreneurial journey.”
💡 Action step: Write down every failure you’ve had so far (school, relationships, projects). Next to each, list what you learned. Notice how you’re still here? That’s resilience.
Chapter 7: The Idea Is Everything—But Execution Is the Proof
Bad news: No amount of funding can save a weak idea.
Good news: You don’t need millions to test a strong one.
Instead of chasing investors, focus on testing your idea cheaply and quickly:
MVP (Minimum Viable Product): Launch the simplest version possible.
Landing pages: Create a one-page site to collect emails before building.
Pre-sales: Sell before you build to validate demand.
💡 Mini story: Dropbox founder Drew Houston didn’t build Dropbox first. He made a simple video showing how it would work and shared it online. Thousands signed up before the product even existed. That demand convinced investors—and Dropbox is now worth billions.
Chapter 8: Building Your Network of Mentors and Peers
If research is your foundation, your network is your scaffolding.
According to LinkedIn, 85% of jobs and opportunities come from networking. Entrepreneurship is no different.
How to build your network (even if you’re broke and 19):
Join communities: Twitter/X, Discords, LinkedIn groups.
Offer value first: Share insights, volunteer, or promote others’ work.
Find peer mentors: Other students launching startups can be just as valuable as older CEOs.
Ask small, smart questions: Instead of “Will you mentor me?” ask “Can I get 10 minutes of your advice on X?”
Chapter 9: Action Steps for the Next 12 Months
Want to get serious? Here’s a roadmap:
Interview 20 people in your target market.
Build one MVP in the next 90 days.
Launch a survey using Instagram/TikTok.
Attend one startup event on campus or locally.
Post your journey weekly online.
Read two biographies of young founders.
Find one peer accountability partner.
Apply to one accelerator or pitch competition.
Practice pitching your idea to strangers.
Reflect monthly on what’s working and what’s failing.
Conclusion: Why This Journey Is Worth It
Here’s the truth: the odds are against you. But the rewards? They’re life-changing.
Gen Z isn’t just the “future of entrepreneurship.” You are already reshaping what business looks like. You’re proving that you don’t need a corporate job, a degree, or even permission to launch.
If you take one thing from this article, let it be this:
👉 Master your research skills.👉 Build genuine connections.👉 Fail fast, learn faster.
Do those three things, and you’ll already be ahead of 80% of other young founders.
Because in the world of entrepreneurship, the idea is everything—But the research and leadership behind it is what makes it real.
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