Profit with purpose: why Gen Z founders are rewriting the rules of business

From orange peel golf tees to high-fibre bars made from surplus fruit, the next generation of entrepreneurs is proving that sustainability isn’t a constraint – it’s a catalyst for growth.

Gen Z founders aren’t interested in the old trade-off between profit and purpose – they’re rewriting the rules entirely. For this generation, impact is built into the business model from day one. And as we’ve seen through this year’s Young Enterprise’s Company of the Year and Start-Up Competitions, that mindset is not only admirable, but commercially powerful.

Having grown up amid climate urgency, economic uncertainty, and widening inequality, it is no surprise that Gen Z see business differently. Profit is not the end in itself; it is the engine that allows purpose to scale. Equally, rather than treating sustainability and social impact as obligations to be managed, they see them as opportunities to get creative, solve problems, and create lasting value.

From classroom to company: what young founders are building

This shift is evident in the businesses young founders are creating. Team Zestee, from secondary school Ysgol John Bright, were named winners of the Company of the Year Competition after developing an innovative golf tee made from orange peel that transforms food waste into a viable, sustainable product. Their strong commercial instinct has been matched by impressive marketing nous, gaining traction on social media with supportive messages from well-known names including Chris Akabusi, Stuart Broad, and Fabrizio Romano.

Meanwhile, Riff, from Harper Adams University and winners of this year’s Start-Up Competition, created high-fibre bars using surplus fruit, tackling food waste while meeting growing demand for sustainable nutrition. Both ventures are grounded in purpose, but equally with a clear understanding of market need.

It is no coincidence that sustainability-driven ideas like these are rising to the top. Consumers are more discerning than ever and businesses that align with their values are better placed to grow. Young founders are identifying opportunities precisely because they are asking different questions: not just “what sells?” but “what solves a problem responsibly?” That perspective is fuelling innovation.

Tackling the NEET challenge through enterprise education

At the same time, these businesses are being built against a challenging backdrop. The UK is facing a growing number of young people not in education, employment, or training, and many feel uncertain about their next step. Pathways into work can feel unclear and a lack of experience, networks and confidence can reinforce the sense that opportunity is out of reach.

This is where enterprise education plays a critical role. It equips young people with both technical knowledge, as well as a mindset of resilience, problem-solving, communication and adaptability needed to navigate uncertainty and create opportunities.

Importantly, enterprise education benefits all young people, not just those who go on to start businesses. It helps level the playing field by opening up access to experiences, networks and insights that might otherwise be out of reach. Time and again, we see young people thrive when given the opportunity to lead, create and collaborate.

A shared responsibility: education, business, and policy

But this cannot sit with education alone. Supporting the next generation must be a shared effort. Schools and colleges are central in embedding enterprise thinking into everyday learning. Businesses bring that learning to life through insight, mentorship and real-world experience. Policymakers have a vital role in ensuring these opportunities are accessible to all, not dependent on geography or circumstance. When these parts of the system work together, we create a clearer, fairer pathway for young people.

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The Young Enterprise competitions bring this into sharp focus, showing what is possible when young people are given the tools, confidence and opportunity to apply their thinking.

Learning from the next generation of founders

So, what can established businesses learn from this generation?

Firstly, that purpose and profit are mutually reinforcing, rather than opposing forces. Secondly, that sustainability should be embedded from the outset, not retrofitted later. And lastly, that talent and ideas can come from anywhere but only if we actively open the door.

Gen Z entrepreneurs are values-driven and highly attuned to the world around them. They are not waiting for permission to do things differently. In a time of economic uncertainty and rapid change, that mindset is just as refreshing as it is essential.