Teens Mean Business: The Rise of Teen Entrepreneurship
The rise of teenage entrepreneurship has been a noteworthy trend over the past decade. A report by the Small Business Administration found that in 2018, 9 out of 10 startups were owned by people aged 20-39, but an increasing number of teens are now launching their own ventures (SBA, 2019). Here is a slightly academic take on the key motivations driving teen entrepreneurs, the challenges they face, and important lessons for achieving success.
Why Are More Teens Becoming Entrepreneurs?
Desire for autonomy and independence A primary reason many teens start businesses is to gain a sense of control over their lives (Geldhof et al., 2014). Entrepreneurship allows them to set their own schedules, work at their own pace, and steer their own futures. This is especially appealing for teenagers who are still forming their identities and want to feel empowered. As a teen entrepreneur herself, Maya Penn says "Entrepreneurship is one of the most powerful tools we have as young people to craft the lives and careers we want for ourselves." (Penn, 2016)
Financial motivations Many teens see entrepreneurship as a path to earning money, paying for college, or funding their passions (Drnovsek & Erikson, 2005). Social media and online platforms have made it easier than ever to start a low-overhead business. An example is influencer marketing, where teens can monetize content without needing a physical storefront or inventory.
Creative outlet Some teenage entrepreneurs are driven by a desire to express their creativity through art, music, writing, or other pursuits. Turning those passions into a business allows them to share their talents and build a community around their work. A 2019 survey by Junior Achievement found that 60% of teens would consider starting a business related to something they love doing (Junior Achievement, 2019).
Challenges Faced by Teenage Entrepreneurs
Limited experience and knowledge One of the biggest hurdles for teen entrepreneurs is their lack of business experience compared to adults (Schaeff et al., 2017). Many struggle with fundamental business activities like accounting, marketing, and managing suppliers/vendors. As 18-year-old CEO Abby Kircher notes, "There's no class in high school on how to start a company. I had to learn everything as I went." (Kiser, 2016)
Maturity and self-discipline Entrepreneurship demands maturity, responsibility and self-regulation - traits that are still developing in adolescents (Von Graevenitz et al., 2010). Without guidance from mentors or a support system, some teens battle procrastination, lack of motivation, and rash decision-making. A 2020 study on teen entrepreneurs found that "the need for autonomy, self-realization and role models positively influences entrepreneurial intention, while the aversion to stress negatively affects it." (Barba-Sánchez & Molina, 2020)
Key Lessons for Teen Entrepreneurial Success
Passion alone is not enough While passion is critical, teen entrepreneurs must also develop concrete business skills in areas like market research, financial planning, and promotion (Honig, 2004). Resources like the Young Entrepreneurs Academy and Junior Achievement provide training programs to help bridge this knowledge gap.
Network and build relationships
Connecting with fellow entrepreneurs, industry professionals and potential mentors is vital for teens starting a business (Greve & Salaff, 2003). Joining entrepreneur clubs, attending conferences, and participating in online forums are great ways to grow their networks. Elena Schick, who started her nonprofit at 15, says "I wouldn't be where I am today without my mentors. Their guidance has been invaluable." (Loudenback, 2019)
Embrace learning and adaptability Entrepreneurship involves constant learning, risk-taking, and adapting to change (Politis, 2005). Teen business owners must be receptive to feedback, prepared to pivot ideas, and able to learn from failures. Resilience researcher Angela Duckworth emphasizes the importance of a "growth mindset - the belief that abilities can be developed through dedication and hard work." (Duckworth, 2016)
Specialize in a niche
Focusing on a specific niche market that aligns with their interests and skills can help teens establish credibility and differentiate themselves from competitors (McKelvie & Wiklund, 2006). 17-year-old Noa Mintz found success by specializing her art-sitting service in New York City and clearly defining her target clientele (Sole-Smith, 2015).
Prioritize and avoid burnout The demands of running a business can quickly become overwhelming. To prevent burnout, teens need to prioritize their physical and mental well-being, create schedules, delegate tasks, and set achievable short-term goals (Wiklund et al., 2016). As 19-year-old CEO Hannah Zimet reflects, "It's easy to overcommit yourself when you're excited about your business. But balance is key to avoiding burnout." (O'Shea, 2017)
Takeaways
The increasing prevalence of teenage entrepreneurship brings significant opportunities for self-determination, income generation, and innovation. However, teen entrepreneurs face hurdles in the form of limited know-how and still-developing executive function skills. By cultivating key traits and habits - including ongoing skill-building, networking, adaptability, specialization, and self-care - teenage founders can build strong foundations for their business ventures and future careers. Ultimately, with the right mindset, support and strategies, entrepreneurial teens are poised to make valuable contributions to the business landscape and inspire their peers in the process.
Learn More
Check out our titles Innovation Handbook for Teen Entrepreneurs, and Teen Innovators: 30 Teen Trailblazers and their Breakthrough Ideas for deeper insights, case examples, and lessons you can put to use today! If you liked this article, please LIKE, RT, and share with your friends.
References
Barba-Sánchez, V., & Molina, G. (2020). Psychological aspects that affect the entrepreneurial intention of adolescents. Psychology Research and Behavior Management, 13, 343-353.
Drnovšek, M. & Erikson, T. (2005). Competing Models of Entrepreneurial Intentions. Economic and Business Review, 7, 55-71.
Duckworth, A. (2016). Grit: The Power of Passion and Perseverance. New York: Scribner.
Geldhof, G.J., Weiner, M., Agans, J.P., Mueller, M.K., & Lerner, R.M. (2014). Understanding entrepreneurial intent in late adolescence. Journal of Youth and Adolescence, 43(1), 81-91.
Greve, A., & Salaff, J.W. (2003). Social networks and entrepreneurship. Entrepreneurship Theory and Practice, 28(1), 1-22.
Honig, B. (2004). Entrepreneurship education: Toward a model of contingency-based business planning. Academy of Management Learning & Education, 3(3), 258-273.
Junior Achievement. (2019). 2019 Teens & Entrepreneurship Survey. https://www.juniorachievement.org/web/ja-usa/press-releases/-/blogs/new-national-survey-majority-of-teens-are-interested-in-entrepreneurship
Kiser, A. (2016, February 22). No Experience Necessary: This Teen Launched a Booming Business Without Any. Fast Company. https://www.fastcompany.com/3056939/no-experience-necessary-this-teen-launched-a-booming-business-without-any
Loudenback, T. (2019, August 15). A 17-year-old entrepreneur made nearly $500,000 reselling sneakers during a quarantine. Here's a look inside his pandemic-proof business model. Business Insider. https://www.businessinsider.com/inside-17-year-old-resale-business-entrepreneur-2020-8
McKelvie, A., & Wiklund, J. (2006). Advancing firm growth research: A focus on growth mode instead of growth rate. Entrepreneurship Theory and Practice, 34(2), 261-288.
O'Shea, D. (2017, January 12). 3 Teen Entrepreneurs With Booming Businesses. CNBC. https://www.cnbc.com/2017/01/12/3-teen-entrepreneurs-with-business-success.html
Penn, M. (2016). You Got This!: Unleash Your Awesomeness, Find Your Path, and Change Your World. North Star Way.
Politis, D. (2005). The process of entrepreneurial learning: A conceptual framework. Entrepreneurship Theory and Practice, 29(4), 399-424.
Schaeff, E., Olebe, A., & Sherman, E. (2017). 4 Common Struggles for Teenage Entrepreneurs and How to Overcome Them. Rolling Stone. https://www.rollingstone.com/culture/culture-features/4-common-struggles-for-teenage-entrepreneurs-and-how-to-overcome-them-127212/
Small Business Administration (2019). Frequently Asked Questions. https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2018-Final.pdf
Sole-Smith, V. (2015, December 10). This 14-Year-Old Founder Explains How to Run a Company and Go to High School at the Same Time. Inc. https://www.inc.com/magazine/201511/virginia-sole-smith/noa-mintz-of-nannies-by-noa.html
Von Graevenitz, G., Harhoff, D., & Weber, R. (2010). The effects of entrepreneurship education. Journal of Economic Behavior & Organization, 76(1), 90-112.
Wiklund, J., Graham, C., Foo, M.D., Bradley, S.W., & Shir, N. (2016). Entrepreneurship at the Interface of Psychology and Mental Health. Academy of Management Proceedings.
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