A new report by the Egyptian Cabinet’s Information and Decision Support Center (IDSC) has shed light on the rising influence of Gen Z entrepreneurs in shaping the global and local startup ecosystems. Titled “Gen Z and the Flat White Economy,” the analysis highlights a new wave of digitally-native founders who are building flexible, innovative companies far from traditional office settings.
The Rise of the Flat White Economy
The report introduces the “Flat White Economy,” a term originating in the UK to describe a new generation of entrepreneurs who founded their ventures from cafes and co-working spaces. The name, derived from the popular coffee drink, symbolizes a cultural shift in entrepreneurship from rigid corporate structures to more agile and creative environments. This model, centered on flexible work and borderless companies, has since become a global phenomenon.
According to the report, companies led by Gen Z are characterized by their emphasis on work-life balance, sustainability, and social responsibility. These ventures are often founded entirely digitally, with 80% of young US entrepreneurs launching their businesses online. This trend reflects a move away from a “freelancer mindset” toward building scalable small and medium-sized enterprises.
Global Startup Landscape Shifts
The report leverages data from the OECD and StartupBlink to paint a picture of a decentralized global startup scene no longer dominated solely by Silicon Valley. While North America still leads, accounting for 36% of startups and 46% of venture capital, Asia has rapidly emerged as a major hub. The continent now captures 19% of global startups and 23% of VC investments, up from just 8% a decade ago.
The analysis also points to the rapid growth of ecosystems outside the traditional powerhouses. Saudi Arabia was highlighted as one of the world’s fastest-growing ecosystems in 2025, climbing 27 places in global rankings to 38th with a staggering annual growth rate of 236.8%. Singapore has also made significant strides, advancing 12 spots since 2020 to rank 4th globally, excelling in sectors like FinTech and blockchain.
Egypt’s Youth-Driven Entrepreneurial Surge
Egypt is prominently featured as a key player in this youth-led entrepreneurial movement. With 21.3 million people aged 18-29, constituting nearly 20% of the population, the country’s young demographic is a powerful engine for innovation. The Global Entrepreneurship Monitor (GEM) report confirms that Egyptian youth (18-34) are more active in starting and managing businesses than their older counterparts.
This ambition is reflected in the numbers. According to a 2025 Mastercard report, 41% of men and 38% of women in Egypt identify as entrepreneurs. The entrepreneurial intent among Gen Z women is particularly high, with 83% having considered launching their own business.
This groundswell of activity is supported by a rapidly improving investment climate. The number of new companies established in Egypt nearly doubled in four years, from 23,900 in 2020 to over 43,500 in 2024. Startup funding saw a dramatic 149.14% increase between 2023 and 2024, demonstrating growing investor confidence. The country currently hosts 524 startups on the “Top Startups” list, representing 68% of all such companies in North Africa.
Government Initiatives Bolstering Growth
The Egyptian government has actively fostered this growth through a series of comprehensive national strategies and initiatives. Key policies include the National Strategy for Artificial Intelligence (2025-2030) and the National Cybersecurity Strategy (2023-2027).
Initiatives like “Africa App Launchpad (AAL)” and “Rowad 2030” are specifically designed to empower young entrepreneurs. This is complemented by a robust network of government, university, and private sector incubators and accelerators, including the Technology Innovation and Entrepreneurship Center (TIEC), AUC Venture Lab, Nilepreneurs, and FEPS BI. The report concludes that by investing in its youth and creating a supportive environment, Egypt is well-positioned to solidify its place on the global innovation map and drive sustainable economic development.
About The Information and Decision Support Center (IDSC)
The Information and Decision Support Center is a think tank operating under the Egyptian Cabinet. It is dedicated to supporting policymakers by providing timely and accurate information, conducting research, and offering data-driven analysis on economic, social, and political issues to enhance the decision-making process in Egypt.
Source: Al-Masry Al-Youm
