The Top Skill Young Entrepreneurs Need (It’s Not What You Think)

Learn why most entrepreneurial ventures are going to fail—and the one unexpected skill that could make the difference.

Much has been written about the fierce entrepreneurial drive of Generation Z, as if it magically appeared in a vacuum. But really, it was always inevitable. They’ve been raised as digital natives who never knew a world they couldn’t connect with at the click of a mouse or the tap of a phone. Why wouldn’t they see the potential to bring their vision—in the form of a product or service—to the wider world?

According to a 2023 study by Square, more than half (54%) of Gen Z respondents want to start their own business someday. The report also found:

• 90% were influenced in their decision by the economic turbulence of the past several years
• 67% skipped college to pursue dreams of entrepreneurship
• 62% have already been running their business for two years or less
• 72% believe their generation has it tougher economically than previous ones
• 84% still plan to start their business in the next five years
• 73% report that their business is their main source of income

Still, the global stats for entrepreneurs aren’t rosy:

• First-time entrepreneurs have an 18% chance of success
• 20% of new businesses fail within the first two years, 45% within five years and 65% within ten years
• 54% of entrepreneurs cite financing as a persistent struggle
• 55% had challenges reaching customers
• 51% found market and economic conditions challenging

Victor Green, creator and producer of the show Newpreneurs, has set out to change these numbers for the better. “Newpreneurs provides a valuable platform for young entrepreneurs by offering substantial investment and, crucially, the support of a dedicated team of mentors,” he says.

“This mentorship ensures that entrepreneurs have ongoing guidance to navigate challenges and refine their business strategies.”

I connected with Green for a conversation about what’s motivating these young people to hustle toward their own definition of success. Here’s what we covered.

A frustrated generation

Green, who began his own entrepreneurial journey when he was just 12 years old, believes that enthusiasm of Gen Z is largely driven by frustration, as they are often regarded as too young to enter the business world.

“This view is misguided because many of them are more than capable of succeeding in business,” he says. “What they need is financial support and, most importantly, mentoring.”

Instead of going it alone, young would-be business owners should tap into the vast network open to them on social media and maybe even in their own backyard. “With the right guidance and resources, they can turn their enthusiasm into successful ventures,” says Green.

The skill to hone

When we talked about the skills a young person should focus on developing in order to launch a successful business, Green’s answer was not what you might expect. Instead of mentioning something like marketing or business management, he says a successful entrepreneur should hone their research skills.

“The most important skill for any entrepreneur is to carry out extensive research,” says Green. “This will ensure that their business idea will fulfill a need in the marketplace and benefit users by improving their situation.”

To round out the portfolio of unconventional skills, I would add the ability to forge a genuine human connection—something that is becoming even more vital in the age of AI.

AI: friend or foe?

Like many of my fellow established entrepreneurs who had to figure things out for themselves, Green is skeptical about the touted benefits of AI. “AI remains largely an unknown quantity at this stage,” he cautions. “While it is expected to prove valuable over time, its current applications for the everyday businessperson are limited.”

If AI does form a natural part of your business strategy, Green warns that it should be approached carefully, as it is not yet proven to be 100% accurate.

Of course, if you’ve polished up those research skills, you should be able to use AI for its best capabilities right now: as an assistant, not a consultant.

To the entrepreneur whose idea isn’t selling

If only 18% of new ventures succeed, the majority of young entrepreneurs will face failure at some level. Does this mean they were never cut out for this life?

As an entrepreneur myself who has failed more times than I’ve succeeded, I would answer that question with a resounding “no.” Failure is often the first step toward success, but you have to keep moving forward. “Failure provides valuable lessons and helps individuals from repeating mistakes,” says Green.

Of course, moving forward doesn’t mean blindly pushing on when you’re headed in the wrong direction. “It is important for young entrepreneurs to understand that not every idea will achieve success,” says Green. “Recognizing when an idea is not working requires maturity and honesty, but it is a crucial part of the entrepreneurial journey.

“Embracing the possibility of failure and learning from it early in your career can ultimately lead to more informed and successful decisions in the future.”

The idea is everything

As we wrapped up our quick exchange, I asked Green for any last thoughts on what it takes to succeed as an entrepreneur today. Here again, he shared something counterintuitive. Where many people might fall back on the clichés of “believe in yourself” and “follow your heart,” Green instead focuses on the quality of what you’re trying to sell.

“No amount of funding can make a poor idea succeed,” he says bluntly. “It’s essential for entrepreneurs to focus on developing solid, innovative concepts to ensure their ventures have a strong foundation for success.”

Again, this is where those research skills can make all the difference: putting yourself in the shoes of the end user and solving a real pain point for them. Without that insight, entrepreneurs can get stuck inside their own heads.

In the world of entrepreneurship, the idea is everything—so do your research to make it a good one.