The Next Generation of Owners: How Millennials and Gen Z Are Re-Shaping Business Ownership

As Baby Boomers transition out of the ownership ranks, Millennials and Gen Z entrepreneurs are stepping in—both by founding new ventures and by acquiring established businesses. The result is a fundamental redefinition of what business ownership means in the modern economy.

A New Kind of Entrepreneur

Millennials now represent roughly 13% of all small business owners, while Gen Z is quickly closing in. These younger owners are digital natives, mission-driven, and comfortable leveraging technology and remote collaboration. They tend to build brands with strong social or environmental values, emphasize flexibility, and integrate personal identity into their companies’ public image.  Unlike previous generations that often pursued stability, Millennials and Gen Z are drawn to entrepreneurship for autonomy, creativity, and lifestyle. Many are also turning to acquisition entrepreneurship—buying existing small businesses from retiring owners—as a faster path to independence.

The Capital Challenge

Access to capital remains the biggest barrier for younger buyers. Higher interest rates and tight credit standards have made traditional financing more difficult. However, new funding avenues are emerging: SBA 7(a) loans, seller financing, and online acquisition marketplaces are expanding opportunities for first-time buyers.  Boomer sellers, eager for continuity, are often willing to structure deals that ease the transition for younger owners. This alignment of interests—Boomers seeking succession, Millennials seeking ownership—is creating a dynamic handoff ecosystem that benefits both sides.

Building Modern Value

Younger owners bring an instinctive grasp of digital marketing and social media branding. They value adaptability and scalability more than fixed infrastructure. However, their success depends on learning classic disciplines—financial controls, succession, and risk management—that underpin long-term viability.  Advisors play an essential role here: helping young owners balance innovation with sound planning, ensuring that passion-driven ventures become enduring enterprises.  This generational refresh can inject vitality into local economies—but only if new owners are financially and emotionally equipped to sustain growth and manage risk.

The Bottom Line

The coming decade will be defined by collaboration between generations—the experience and capital of Baby Boomers meeting the creativity and digital fluency of younger entrepreneurs. Business ownership is evolving, not disappearing.

At FPA Owner Transitions, we help next-generation entrepreneurs and business owners align growth with financial stability—offering guidance on acquisition strategy, capital structure, and long-term wealth creation.