Table of Contents
You’ve probably not heard of Ben Pasternak, but this Australian kid entrepreneur, at the ripe old age of 19, lives alone in his own New York high-rise apartment. Kidpreneurs are everyday kids with an eye for an opportunity and the entrepreneurial drive to make it happen. Ben’s fortune grew from the tech business he set up to develop social media apps for teens. After recently selling it, he’s now turning his attention to the burgeoning plant-based food industry.
While we grown-ups are sometimes wary of starting from scratch, kid entrepreneurs are fearless and motivated by their imaginations. In our day, entrepreneurial kids sold lemonade or veggie seedlings sprouted in Dad’s shed. But today’s online connectivity means that kids no longer sit outside awaiting passing traffic. They’ve moved indoors, extending fibre-optic fingers directly into global customers’ inboxes, and utilizing online sales platforms, social media marketplaces, and eCommerce tools.
The Rise of Kidpreneurs
Kidpreneurs are not just a passing trend; they represent a significant shift in how young people engage with the world of business. The rise of kid entrepreneurs can be attributed to several factors, including the accessibility of technology, the influence of social media, and the increasing emphasis on entrepreneurship in education. With tools like coding platforms, online marketplaces, and social media, kidpreneurs can turn their ideas into reality with relative ease.
The financial rewards are motivating, but there are other benefits for children pursuing their business ideas. Kidpreneurs master skills it often takes a lifetime to learn (probably why they’re called life-skills) such as communication, prioritizing, organizing, money handling and budgeting, and resilience. These skills not only help them succeed in business but also prepare them for future challenges in life.
The Challenges Kidpreneurs Face
Of course, taking a business idea from conception to realization is not as easy as mowing a neighbor’s lawn for pocket money. As technology has enabled wider markets, it has left businesses exposed to new, and previously unconsidered, risks. Kidpreneurs must navigate these challenges with the support of their parents and mentors. Before supporting your children into business, consider the following:
- Costs: Nothing is free – we could leave it at that, but in the interests of parental sanity, we suggest you research everything from equipment, materials, and suppliers, to insurance, accountants, and government by-laws.
- Qualifications: Whether your teen is selling cupcakes or offering babysitting services, make sure they, and you, are across any regulations, e.g., do the budding bakers need food-handling certificates and allergen labeling knowledge?
- Legalities: All industries have legal requirements. Even online sales platforms may require the seller/service provider to be insured, provide return/refund procedures, and customer privacy policies. Failure to meet legal requirements may result in exposure to financial or legal risk!
Risk Management for Kidpreneurs
The Australian Government recommends all businesses conduct a 3-step risk assessment: Identify where you’re at risk, analyze the level of risk, and evaluate the nature of risk and decide what to do. This is especially important for kid entrepreneurs, who may not be aware of the potential risks involved in running a business. Parents and mentors should guide them through this process to ensure they are well-prepared.
Did you know that if space in the family home is used for business, your residence may be subject to capital gains tax when you sell? The government may assess that part of your home as commercial property, so ensure you seek legal and financial advice to understand your obligations. Fully explore all issues around business ownership and structure, including responsibility in the event of bankruptcy. Then there’s tax – the federal treasurer is interested in your kids’ affairs too!
Cyber-Safety for Kidpreneurs
With everything else to consider, don’t overlook cyber-safety. Though every business is vulnerable to scams and crooks, kidpreneurs are additionally at risk from online bullying and predators. Take all necessary precautions, including paying for, and keeping up to date, anti-virus software and include anti-SPAM technology when building websites, online stores, etc. Educate your kidpreneurs about safe online practices and monitor their online activities to ensure they are protected.
Supporting your kidpreneur can set them up for a future where they tread their own path and allow their imaginations to run free. Thinking about imaginations running free – perhaps kids make the best entrepreneurs! By fostering their entrepreneurial spirit and providing the necessary support and guidance, you can help your kidpreneurs achieve their dreams and make a positive impact on the world.
Conclusion
Kidpreneurs are redefining what it means to be an entrepreneur. With their fearless approach and boundless imagination, they are turning innovative ideas into successful businesses. While the journey of a kidpreneur is filled with challenges, the rewards are immense. By mastering essential life skills, navigating risks, and staying safe online, kidpreneurs can build a strong foundation for their future endeavors.
As parents and mentors, it is our responsibility to support and guide these young entrepreneurs. By providing the necessary resources, advice, and encouragement, we can help kidpreneurs overcome obstacles and achieve their goals. The new age of kidpreneurs is here, and with the right support, they can lead the way to a brighter future.
Read our other articles on Entrepreneurs.
