In a study done by the Kauffman Foundation in 2014, they found that 25.8% of people over the age of 55 are new entrepreneurs – a huge leap in comparison to the 14.8% of people in this same category starting business in 1996. Proving once again age is nothing but a number – even more so when it comes to entrepreneurship. But what about the entrepreneurs on the opposite end of the spectrum, can you be too young to start a business? The 40 impressive kids – and millionaires- on INC list of Millionaires Under 20 are proving that you can never be too young to capitalize on a good idea.
Gone are the days where the extent of a child owned business is a lemonade stand on their front yard – today’s young entrepreneurs are store owners, inventors, …show more content…
They not only scaling and expanding their business but some have gone on to start their second – sometimes third- companies. Interestingly, although their ages do not hinder their success in any way, it does mean that young entrepreneurs have to use less conventional methods when attempting to finance their business ventures. Young entrepreneurs have to face many of the same obstacles that older entrepreneurs experience, while also overcoming the hurdle of their age.
Forming the Business: Legally minors (people under 18), cannot form a legal business entity. Their parents must to act on their behalf; which includes being the authorized signer. In this situation the parent is also responsible for any liabilities operating the business may present. In the case of a child with a parent or an emancipated; a state guardian can be appointed by the court to help with business matters. In some states, a child can regain some control and decision making power by becoming a shareholder or serve on the board of directors of the …show more content…
Since their under 18, most of these minipreneurs have no credit history or personal funds to invest in the business. While some are lucky like Tim Sykes – a young stock investor who used his bar mitzvah money to make his first investment- very few young entrepreneurs have followed this path. Starting traditionally requires either borrowing the money from a parent or finding a cosigner (usually a parent) for a loan. Many are also expanding using only the revenue they previously made through sales. Still, other young entrepreneurs have found alternate around financing restrictions. Technology and social media has made crowd funding a legitimate source of investments for many of these kids. Other like Kiowa Kavovit (6) and Moziah Bridges (11), have used the hit show shark Tank as a way to pitch to potential
Gone are the days where the extent of a child owned business is a lemonade stand on their front yard – today’s young entrepreneurs are store owners, inventors, …show more content…
They not only scaling and expanding their business but some have gone on to start their second – sometimes third- companies. Interestingly, although their ages do not hinder their success in any way, it does mean that young entrepreneurs have to use less conventional methods when attempting to finance their business ventures. Young entrepreneurs have to face many of the same obstacles that older entrepreneurs experience, while also overcoming the hurdle of their age.
Forming the Business: Legally minors (people under 18), cannot form a legal business entity. Their parents must to act on their behalf; which includes being the authorized signer. In this situation the parent is also responsible for any liabilities operating the business may present. In the case of a child with a parent or an emancipated; a state guardian can be appointed by the court to help with business matters. In some states, a child can regain some control and decision making power by becoming a shareholder or serve on the board of directors of the …show more content…
Since their under 18, most of these minipreneurs have no credit history or personal funds to invest in the business. While some are lucky like Tim Sykes – a young stock investor who used his bar mitzvah money to make his first investment- very few young entrepreneurs have followed this path. Starting traditionally requires either borrowing the money from a parent or finding a cosigner (usually a parent) for a loan. Many are also expanding using only the revenue they previously made through sales. Still, other young entrepreneurs have found alternate around financing restrictions. Technology and social media has made crowd funding a legitimate source of investments for many of these kids. Other like Kiowa Kavovit (6) and Moziah Bridges (11), have used the hit show shark Tank as a way to pitch to potential