How Tech Will Fuel Gen Z And Millennial Business Success In 2025

The entrepreneurial landscape is undergoing a generational shift, with Millennials and Gen Zs embracing technology and social media in ways that sets them apart from their Gen X and Baby Boomer counterparts. These younger, digitally native and tech-savvy entrepreneurs are leveraging online tools and platforms to not only streamline their operations but also fuel ambitious growth strategies and reach new customers.

A recent survey from American Express, the Amex Trendex: Small Business Edition, highlighted key differences in how younger generations approach business, and their outlook for 2025.

“Younger generations of entrepreneurs are embracing the digital world to fuel their business ambitions. Millennials and Gen Zs are not just adopting technology, they’re strategically leveraging AI and social media to drive growth, engage customers, and gain a competitive edge. Their digital fluency is redefining the future of small business.” said Anna Marrs, Group President, Global Commercial Services at American Express.

As entrepreneurs prepare for 2025, they’re embracing the undeniable impact of technology and digital tools for growth. By understanding the strategies and priorities of younger entrepreneurs, businesses of all sizes and generations can gain valuable insights into how to thrive in the modern marketplace.

Tech-Forward Investments

The latest Amex Trendex: Small Business Edition found that Millennial and Gen Z entrepreneurs are significantly more likely to invest in digital solutions compared to Gen X and Baby Boomer business owners. They are prioritizing digital solutions for managing their finances, reaching new customers, and upgrading their financial tools. The data reflects a strong desire to leverage technology for strategic growth and efficient operations.

Asked about their goals for 2025, younger entrepreneurs were more likely to prioritize expanding their employee base, introducing new products or services, and growing their physical footprint, showing their desire for expansion in the early stages of entrepreneurship.

Social Media as a Catalyst

This generational divide also extends to the realm of social media. While all generations recognize the importance of social media as a vital business growth engine, Millennials and Gen Z particularly understand its potential for brand building and customer engagement.

According to the survey, 71% of Millennial and Gen-Z small businesses say that it is a dream of theirs to see their business go viral, and that they draw inspiration from social media trends (74%) and adapt their strategies based on online observations (67%). This embrace of social media aligns with the rise of digital businesses and the increasing reliance on social platforms for customer interaction, inspiration, and growth. Traditional marketing tactics are no longer providing the experience audiences want when engaging with a brand, and it’s precipitating a bold shift in how entrepreneurs chart a path to success in marketing.

Video content, especially short form video, is becoming a major touchpoint for brands on social media. Per new research from iStock’s VisualGPS global insights platform, 82% of users seek out video content on TikTok, Instagram Reels, and YouTube Shorts to educate themselves. Social media is becoming a new source to search.

“People want a more positive and insightful experience from social media, and they want to know that the content they consume is coming from a source they can trust,” said Dr. Rebecca Swift, Senior Vice President of Creative for iStock and Getty Images. “Being authentic in your content, especially when it comes to visuals, is vital to sowing that trust.”

Swift encourages business owners to focus on having a voice that is real and relatable in a way that’s unique to them. “People want radical honesty from brands: the outtakes, the bumps in the road, the unvarnished truth. For entrepreneurs, baring the messiness of running a business and chasing growth can be even more impactful than showing off their successes. Let consumers see your human side, because that raw vulnerability opens the door to lasting connections.”

Embracing AI for Growth

AI is rapidly changing how we live and work, and small businesses are no exception. Younger entrepreneurs are leading the charge in adopting AI, with the survey finding that Millennial and Gen Z businesses already utilizing AI (46%) plan to increase their investment in the technology in 2025. They recognize AI not just as a tool for growth, but as a source of competitive advantage.

Interestingly, while some fear AI may replace jobs, these small businesses see it as a driver of growth, necessitating workforce expansion to support their progress. This forward-thinking approach positions them for success in an increasingly digital and AI-driven business landscape.