Data from 2021 shows that just 1% of business founders in the UK are aged under 20, with 27.1% being aged between 20 and 29.
There is no age restriction on starting a business – and savvy entrepreneurs of all ages have been able to make it work. That being said, there are a unique set of challenges for those starting a business aged between 16-24 – and it can sometimes feel as though there is no support available to help.
Thankfully, this isn't the case – there are specific young entrepreneur business grants and programmes designed to encourage young people to launch their business ideas, alongside a plethora of business mentors to learn from on social media.
NerdWallet's business finance expert, Connor Campbell, comments:
"It is a long-standing misconception that only those in their late twenties and onwards can become successful entrepreneurs. The idea for a great business venture can strike at any age. What tends to differ as we get older, however, is the amount of knowledge and resources we are able to invest into an idea.
"There are specific difficulties for those entrepreneurs aged under-18, mostly due to limitations around opening a business bank account or claiming any form of financing. But, this doesn't mean that those within this age group should be dissuaded from starting a business.
"There are a wide range of support systems and funding schemes available for those aged under-25, offering plenty of opportunities for young people to get ahead and turn their business idea into reality.
"Not only can these resources help to create a successful business now, in the present – they can also build experience and skills that will be beneficial to future business ventures."
To help younger entrepreneurs get a head start, Connor has put together his do's and don'ts of starting a business aged 16-24:
1. Don't rush into financing opportunities
As a young entrepreneur, financing your business venture is one of the most pressing issues to address. For some, your business may be able to be funded by personal savings, informal loans from family and friends, or working on the side to pay for business expenses. However, for many, the need to finance your business can potentially lead to rushing into taking out business loans or credit cards that may not necessarily be needed.
The good news is that there are a wide range of financing opportunities available to young entrepreneurs – from government grants to specific business accounts with lowered rates for first-time business owners. Taking the time to shop around, speak to advisors, and find the best deal and suitability for your business can help to save you a lot of money and stress.
2. Consider a business partnership
A great business idea can strike at any age, but one thing remains true regardless: in order to be successful, any business requires appropriate financial resources.
Unfortunately, if you're under the age of 18, you are legally considered a minor – which means you are unable to take out any business financing by yourself. This includes business bank accounts, credit cards, loans, and any other finance options.
Entering into a business partnership with someone over the age of 18, or having a guardian for your business, can be a way to ensure you have access to the funding that your business needs, without having to wait until you turn 18.
3. Commit to tracking trends in your chosen industry
As a new business owner, the more time you can dedicate to following trends in your industry – the better. This includes everything from researching who your competitors are, and what they're up to, to learning what your potential customers need and expect in a product or service.
While people of all ages can run great, successful businesses, it is undoubtedly Gen-Z and Millennials that excel in their use of technology to stay up to date on current events. This can be utilised to your advantage by following relevant social media tags, competitor profiles, and wider industry publications to keep track of what products and services are in demand, and which approaches are working the best in your industry.
4. Don't blindly follow the advice of social media mentors
Being younger doesn't necessarily mean that you will require mentorship from other business leaders. However, there is no shame in asking for help as a young entrepreneur if needed – and getting guidance from someone who has successfully run their own business can give you some great insight into what to do, and perhaps more importantly what not to do with your own.
However, it's always worth taking the advice given by social media business mentors with a pinch of salt. While many will have advice and experiences that are directly relevant to your area of interest, there are undoubtedly others who may not be showing the full reality of their business experience – which can lead to unnecessary comparisons. Instead, try to find relevant mentors in the same industry whose advice may be more applicable to your own business.
5. Utilise opportunities to demonstrate expertise
As a newcomer to your industry, you should aim to demonstrate your skills and expertise as much as possible – taking every opportunity to show off your knowledge. This can include volunteering yourself for talks at conferences and other events, to producing online content around your chosen niche.
Building a positive reputation both for yourself and your business can play a big part in opening opportunities for trading and collaborating with other, larger businesses – which can significantly increase your customer base.
Copyright 2023. Submitted by Cara Bews of Shout Bravo for NerdWallet