Blog » Why Today’s Kids Are Launching Startups Before Graduating High School

Why Today’s Kids Are Launching Startups Before Graduating High School

two kids working on a business on a screen
Why Today's Kids Are Launching Startups Before Graduating High School; Image Gustavo Fring; Pexels

While today’s young founders may still sell lemonade, they’re also likely to build apps, run YouTube channels, create jewelry, develop AI tools, or turn an everyday hobby into an e-commerce brand. You may even have seen them on Shark Tank. But what really impresses me is how young these entrepreneurs are.

Young entrepreneurs are often founders who started companies before turning 18. A 4-year-old helped launch an international lemonade brand, a 7-year-old invented a patented hair accessory, and a 9-year-old launched a bow-tie company.

This isn’t just a bunch of exceptionally ambitious kids. It’s a fundamental sign that the barriers to entrepreneurship have shifted.

Why? You don’t need an office, employees, venture capital, or even a driver’s license to start selling products. All you need is an idea, a customer, and increasingly, a smartphone. That shift is inspiring a new generation of entrepreneurs who don’t wait until college (or even high school) to start.

The Startup Costs Have Collapsed

Previously, starting a business required significant capital. To start a business, you needed physical inventory, a brick-and-mortar storefront, dedicated phone lines, print advertising, and a complex merchant processing system. Even a bare-bones operation required thousands of dollars before the first customer walked through the door.

Today, a kid can start much smaller.

On an iPhone, for example, a teenager can manufacture a small product run, photograph it, market it on social media, and find global buyers. Or, children can sell handmade crafts at local pop-up markets. A teenager can also be a programmer and can create a web application or mobile app. And without spending a dime on traditional advertising, a young creator can produce videos and build a loyal audience.

Ultimately, the internet didn’t just create new business models; it also changed who could start them.

Further, by automating creative, coding, and operational tasks with artificial intelligence, those barriers are lowered even further.

Traditionally, entrepreneurs faced high barriers to startup success: brick-and-mortar storefronts, significant capital investments, adult management teams, and expensive print advertising. Kid-preneurs can, however, benefit from the modern digital model because it relies on e-commerce platforms, low or no upfront capital, and AI tools that work with smartphones.

That doesn’t mean 12-year-olds can run a business alone. Adults are still needed for legal contracts, banking, taxes, and online safety. But taking that very first step is almost frictionless now.

Kids Are Seeing Entrepreneurship Earlier

Another powerful catalyst is that young people are watching real-time business building on their daily media feeds.

Entrepreneurship is no longer an abstract concept buried in a high school business textbook. You can find it on YouTube, TikTok, and Instagram. It’s embedded in podcasts, creator networks, and online communities. Often, kids watch creators their own age design products, launch stores, and share revenue reports.

As the financial barrier drops, so does the psychological barrier.

Traditionally, business ownership was associated with experienced adults with personal savings and professional contacts. In the digital age, entrepreneurship has become accessible, immediate, and youthful.

As a result, children’s career ambitions have changed as well. According to Junior Achievement and EY research, over 60% of teens prefer entrepreneurship over traditional careers. In addition, young entrepreneurs, ages 18-24, are starting companies at a higher rate than previous generations. According to the Global Entrepreneurship Monitor 2023/2024 United States Report, nearly one-fourth of those surveyed in this age group (24%) are entrepreneurs, and 21% plan to start a business in the next three years.

In short, it’s no longer considered a high-risk anomaly for young people to start their own business. Starting a business is now seen as a legitimate career option.

The Best Ideas Start With a Kid’s Own Problem

Because young entrepreneurs don’t try to invent complex, revolutionary technology, they often identify viable business ideas. Instead, they focus on solving immediate problems they face every day.

Here are some real-world examples:

  • Maddie Rae. When the slime craze exploded, Rae struggled to find the right glue formulation. Instead of moving on, she worked with her father to manufacture slime glue. That idea led to an e-commerce business that sells specialized crafting supplies, branded merchandise, and hosts live events.
  • Gabby Goodwin. When Goodwin was 7, she and her mother were frustrated by traditional hair barrettes that slipped out of children’s hair. Using a patented, double-faced, double-snap bowrette, they built GaBBy Bows into a national brand.
  • Alina Morse. As a 7-year-old, Morse was offered a lollipop at a bank, but her father reminded her that sugary candy was bad for her teeth. Her reaction wasn’t to give up candy — it was to ask, “Why can’t we make a healthy lollipop that’s actually good for your teeth?” This question led to the invention of Zollipops and the Zolli Candy line, available in major chains nationwide.

This is entrepreneurship at its best: Identify a point of friction, figure out why it exists, and build a practical solution.

Building Brands Alongside Products

In the past, young makers focused almost exclusively on local distribution — like setting up a table at a school market to reach 50 neighbors.

Today’s kid-preneur builds brand stories that reach audiences at scale. A product paired with an authentic origin story can create opportunities that old business models can’t match.

Mikaila Ulmer founded Me & the Bees Lemonade at age 4 after a bee stung her. With a passion for honeybees, she adopted her great-grandmother’s 1940s flaxseed lemonade recipe, sweetened it with local honey, and donated a portion of profits to bee conservation.

Ulmer wasn’t just selling a drink; she had a clear mission. Using that narrative, she landed her product on major supermarket shelves nationwide and secured seed investment on Shark Tank.

Remember, people don’t just buy products — they buy identities, missions, and authentic stories. And young founders are mastering that branding lesson earlier than ever.

Going Straight Into Technology

Kid-preneurship extends far beyond consumer goods and physical products. Software, digital platforms, and AI have become popular among young founders.

For instance, Josh Feinsilber created Gimkit as a high school project after using gamified learning tools in class. Using his platform, he transformed routine classroom quizzes into an interactive, game-based learning experience. Globally, millions of students and educators benefit from the software.

Despite the rise in the number of young tech founders, the ceiling remains high:

  • At age 7, Zach Yadegari taught himself to code, built a gaming website in his teens, and then co-founded Cal AI, an AI-powered app that tracks nutrition and calories.
  • Many young tech founders featured on tech industry lists are building machine learning software, e-commerce infrastructure, and online education tools.

Digital natives don’t consider software platforms and AI tools complex enterprise technologies. Just as previous generations viewed poster boards, markers, and wooden stands, they treat them as everyday creative mediums.

The True Value Is the Financial Education

In an open market, creating value is fundamentally different from earning an allowance.

Children learn how to manage and spend money given to them by authority figures through allowances. As a small business owner, though, you have to learn about cash flow, operating expenses, profit margins, inventory risks, customer service, and market realities.

Moreover, it teaches young people the difference between a personal idea and a product people will actually purchase.

A young founder might love a product design, but if it doesn’t sell, they get real-world feedback immediately. That’s not a failure. That’s market research. By doing so, they are forced to analyze their variables:

  • Was the price point too high for the target customer?
  • Was the product positioning unclear?
  • Were they marketing on the wrong platform?

Unlike classroom exams, business exams lack a standardized answer key. To find traction, young founders must test hypotheses, adapt, and iterate.

Parents Should Act as Coaches, Not CEOs

Often, enthusiastic parents overinvest and take control of their children’s promising projects.

As the parent, it’s their responsibility to construct the website, write social media copy, handle vendor communications, and make executive decisions. Although the business might grow faster, the child loses its primary educational benefit.

Beyond calculating unit margins, teaching basic bookkeeping, ensuring legal compliance, and asking guided questions, effective parents act as strategic coaches. Instead of taking over, they refuse to negotiate every vendor deal, write all marketing copy, run the website completely, or make all final executive decisions.

To develop genuine business acumen, young entrepreneurs must be allowed to make small, low-stakes mistakes.

Redefining the Goal of Kid Entrepreneurship

Developing kid-preneurs isn’t meant to turn every child into a high-pressure tech entrepreneur or to turn childhood into a startup incubator.

Instead, the real value of early entrepreneurship is cognitive: it fundamentally shifts how a young person views the world.

Instead of relying on an adult to solve problems, they learn to solve them themselves. By evaluating underlying costs, effort, and value creation, they stop viewing prices passively. Rather than viewing money exclusively as something adults hand down, they understand that wealth is actively produced by providing useful services.

A lemonade stand was never truly about selling lemonade. It was about discovering that you have the agency to earn your own way by providing value people want. In today’s larger, more connected marketplace, this lesson is easier for younger generations to test.

Image Credit: Gustavo Fring; Pexels

About Due’s Editorial Process

We uphold a strict editorial policy that focuses on factual accuracy, relevance, and impartiality. Our content, created by leading finance and industry experts, is reviewed by a team of seasoned editors to ensure compliance with the highest standards in reporting and publishing.

TAGS
CEO at Due
John Rampton is the founder and CEO of Due, helping people manage finances. His goal in life is to help you find your purpose without worrying about money.
About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Editorial Process

The team at Due includes a network of professional money managers, technological support, money experts, and staff writers who have written in the financial arena for years — and they know what they’re talking about. 

Categories

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More