"I'd Rather Start My Own Company Than Work Like This" AI Lowers Barriers to Entrepreneurship... Rise of One-Person Businesses in China [The World is Z]

Chinese Youth Turn to AI to Run Solo Enterprises
One-Person Startups Emerge as an Alternative Amid Youth Employment Crisis
More Than 7 Million Launched, But Monetization Remains a Challenge

Editor's NoteGeneration Z (those born in the late 1990s to early 2010s) is attracting attention as a generation that leads culture and trends amid rapid change, setting new standards across society. In [The World is Z], we shed light on the lives and values of Generation Z around the world and explore how they are reshaping society.

An increasing number of young people in China are operating companies on their own by utilizing artificial intelligence (AI). Burned out from long working hours, fierce competition, and challenging job markets, these young people are quitting their jobs and launching businesses of their own. By leveraging AI for tasks ranging from coding and customer service to product promotion, they are able to handle a wide range of work independently, making it easier for one-person start-ups to get off the ground.

Over 7 million one-person businesses launched last year in China... a 42% rise in a year

According to the Wall Street Journal (WSJ), Wu Songyun (35), who previously worked in international trade in Chengdu, China, suffered from chronic stress due to long working hours and high work intensity. He often had trouble sleeping and, in 2024, left his job to create "TideFlow," an application designed to track sleep patterns. Wu said, "The work pressure was overwhelming," adding, "Things are much better now."

However, "TideFlow" has yet to achieve significant results. While there are about 1,000 users, only around 35 are paying subscribers, reportedly causing the service to post a loss every month.

There are many young entrepreneurs in China like Wu, who run businesses alone. Last year, more than 7 million one-person companies were newly established in China, representing roughly a 42% increase compared to 2024.

Starting a business isn't always a 'choice' for Millennials & Gen Z in China

The rise in one-person start-ups is closely tied to the challenging youth employment landscape in China. The WSJ reported, "For China's Generation Z and Millennials, entrepreneurship is sometimes less a choice than a necessity." Some of these young people founded one-person businesses after being laid off from big tech firms, while others opted for entrepreneurship to escape cutthroat corporate cultures.

Amid the youth job crisis, the Chinese government is also stepping in to support one-person entrepreneurship. Local governments, concerned about employment, are providing living and office space to founders and are issuing vouchers to make AI tools more affordable. In technology hubs such as Hangzhou and Shenzhen, hundreds of government-backed small-scale business incubators have sprung up.

Guo Shan, a partner at the Shanghai-based consulting firm Hutong Research, noted, "There are growing concerns that AI could eliminate jobs," adding, "One-person enterprises can present opportunities for employment."

Over half make less than $1,000 per month... Monetization remains tough

Citizens are moving on a street on Nanjing Road in Shanghai, China. Photo by TASS Yonhap News

However, turning a start-up into a profitable venture remains difficult. A survey of 1,500 one-person businesses by "HongHub," a one-person entrepreneur community in Hangzhou, found that over half reported monthly revenues of less than $1,000 (approximately 1.4 million won).

Haoyu Liu (29) also started a solo business using AI but struggled with monetization. After working as a software engineer for an e-commerce company in New York, Liu returned to China last year and developed an astrology application. He handled everything from app design and administrative work to marketing using AI alone, but after just a few months, he closed the business and shifted to developing an AI-based gaming application.

 

The WSJ emphasized that such one-person companies do not provide a "silver bullet" to China's youth employment crisis. Many founders, like Liu, repeatedly pivot their business models, while others struggle to secure investment or attract customers. As a result, some entrepreneurs are reported to be focusing on maintaining a small scale to support themselves, rather than aiming for business expansion.

This content was produced with the assistance of AI translation services.