The Startup Boom Nobody Saw Coming: Teens as CEOs

Picture of Emily Carter

Emily Carter

Not so long ago, the idea of a teenager running a company was a novelty, a social media post you’d scroll past and smile at. But today it’s the new normal.

Across the globe, teen entrepreneurs are building apps, launching brands, and closing investor deals before they finish high school.

This new startup boom isn’t driven by luck or trend; it’s powered by digital native confidence, access to global tools, and a generation that’s not afraid to take risks early.

The rise of teenage CEOs is changing how we define leadership, innovation, and success in the modern startup world. In 2024, a Junior Achievement survey found that 71% of teens were likely to start a business as adults, and nearly half of those budding founders would use generative AI instead of hiring employees.

That’s up from 41% in 2018. No one saw this startup boom coming, with teen entrepreneurs stepping into CEO roles.

Numbers Behind the Trend

According to the Global Entrepreneurship Monitor 2023/2024 United States Report, 18 to 24-year-olds are starting businesses at a higher rate than their older peers.

Many don’t wait until adulthood; Junior Achievement and Ernst & Young research shows 41% of teens prefer entrepreneurship to a traditional job, and 13% of business owners started their first company by age 18 or younger.

Europe is similar. Over 60% of European Gen Zers plan to start a business in the next 3-5 years. Both cultural and structural advantages drive that.

Europe’s social safety nets and government-funded education reduce the personal risk of starting a company.

Investors are more cautious; they want functional products and early revenue, but the digital native mindset of young founders gives them an edge in understanding new technologies and distribution channels.

Digital Natives With a Head for Business

Gen Z’s techiness is the reason for the teenage startup boom. 99Firms’ data from Pew Research shows 95% of teens have a smartphone. Over 32% of Gen Z transactions happen on mobile, and 85% use social media to learn about new products.

TikTok, Instagram, and YouTube are not only communication channels; they are marketing and sales machines that don’t require big ad budgets.

Campaign Monitor data says one-third of Gen Z buys something after seeing it on social media. This digital savviness allows teenage CEOs to build global brands with just a smartphone and an idea.

No-code platforms, e-commerce services like Shopify, and accessible generative-AI tools make it even easier. These teens plan to use AI to do tasks that traditional businesses would hire for.

Add social media marketing and user-friendly online store builders, and a teenager can prototype, launch, and promote a product in days.

Drivers of the Teen Startup Boom

Teen entrepreneurs aren’t just chasing profits; they’re building movements. CEO Today’s 2025 feature on teenage tycoons says these young founders align their businesses with authenticity, speed, and purpose.

Malik Johnson’s label, Earth Threads, uses recycled materials to promote sustainability and has built a community around eco living. Ella Martinez created ChatBuddy, a mental health chatbot with over 10,000 users and school district partnerships.

Sasha Patel, a 14-year-old YouTube chef, turned snack recipes into a digital brand; her channel has half a million subscribers and partnerships with wellness companies.

These examples show that young founders often combine entrepreneurship with social impact, speaking to their peers who value authenticity and activism.

Low‑cost, High‑Impact Tools

In the past, starting a business required a bank loan and lots of capital. Now, teenagers can launch a business with minimal funds.

CEO Today says many startups begin with no funding; Malik redesigned old clothes; Sasha filmed on her phone. E-commerce platforms like Shopify give you an inexpensive storefront; social media is free marketing; open-source software lets you build products.

Even Pixie Curtis, who became famous for selling fidget toys, built her brand’s early success around viral social media campaigns, not traditional advertising.

Being able to monetize a brand through digital channels means teenagers can test and iterate without the financial risk older entrepreneurs faced.

Support networks and education programs

While teen startups are driven by passion and imagination, adults are still very much engaged. CEO Today describes how teenagers need their parents/guardians to help out with paperwork for legal, bank accounts, and contracts.

Projects like Junior Achievement’s Launch Lesson bring business owners into senior school classrooms during National Entrepreneurship Month so teens are able to mingle with role models and receive concrete skills.

Accelerators like Leangap, which uses mentorship to take high schoolers, have had success stories like Eric Chen, an adolescent founder who built blockchain firm Injective before raising millions from venture capital.

These networks offer mentorship, access to resources, alongside belonging, so the young founders are assisted by funding, advertising, alongside scaling.

Cultural and structural factors

Regional conditions shape the startup boom. In Europe, social welfare and subsidised education reduce personal financial risk for first-time founders.

Yet venture capital is cautious, valuing track record and networks; young Europeans need to show a working product and early revenue to get funded.

Experts quoted by Tech Funding News say Gen Z founders succeed when they combine their digital native mindset with experienced mentors and build diverse teams.

In the US, student debt discourages risk-taking, but a more meritocratic venture ecosystem gives bold ideas a chance if they gain traction.

Globally, micro VCs, angel syndicates, and crowdfunding channels are emerging so teenage founders can get funded without the traditional gatekeepers.

Success Stories: Teens Building Real Businesses

The startup boom is not speculative; it is generating tangible products, revenues, and jobs.

  • Pixie Curtis (Australia): Curtis derived success from her fidget‑toy business, whose sales amounted to six-figure monthly sales and sold out her entire stock almost overnight. After putting up her business to attend school, she repositioned herself to concentrate on lifestyle endorsements as well as tech partnerships and fashion brands.

  • Ella Martinez (USA): Martinez made the intelligence-based mental-health chatbot for teenagers ChatBuddy when she was 16. The service gained over 10,000 members within half a year and was licensed by school districts. Her mission-based venture closes a clear gap present among her generation.

  • Malik Johnson (USA): Johnson’s Earth Threads produces streetwear from inexpensive finds and recycled materials by combining fashion with the environment. His label had been cult-beloved and listed under eco-fashion roundups.

  • Sasha Patel (India): A 14-year-old influencer, Patel’s YouTube snack-and-smoothie channel has over half a million subscribers. Patel’s online cookbook has been launched by her, as well as partnerships with health firms. Her success is an example of the potential for content creation to become one’s business.

  • Deni Darenberg (UK): Profiled by Investopedia, Darenberg created the online advisory business, dogAdvisor, at age 16. The platform hosts some 100 professional posts and draws over 1,600 members each week, revealing the potential of niche expertise to translate to business success.

  • Fonzi Coleman (USA): Coleman started Bubbles and Blaze, an environmentally friendly candle business, when she was only 14. The business had sold over $3,000 worth and was praised for being environmentally friendly.

These stories join earlier examples, such as Mark Zuckerberg, who launched Facebook at age 19, and Matt Mullenweg, who cofounded WordPress at age 19.

They collectively are used to demonstrate that age is not an insurmountable obstacle to someone’s creating an economy-class business and that the pipeline of teenager CEOs continues to grow.

The Other Side of the Coin: Challenges and Risks

The teenage startup boom isn’t without its challenges. Legal and financial barriers exist. Minors can’t form a company or sign contracts without adult involvement.

Access to capital is limited; venture capitalists often prefer experienced founders, and many young entrepreneurs bootstrap their ventures using savings or revenue.

Surveys show that 67% of teens are stopped from starting a business by fear of failure, which is the psychological hurdle of taking risks.

Balancing school and business is tough. CEO Today says many teenage CEOs run their companies after school or on weekends; time management apps like Notion and Trello are a must.

Burnout and mental health pressures arise when academic demands clash with startup responsibilities. And digital dependence has its downsides: 99Firms reports 55% of Gen-Z use their smartphones for more than 5 hours a day, and 43% are heavily influenced by social media.

Running an online business exposes teens to online criticism and the pressure to stay relevant.

Looking Ahead: Why Teen CEOs Matter

The explosion of teen startups is reshaping the face of business. Young businesspeople are utilizing digital skills, cheap technologies, and social media to build companies that are faithful to their values and that are giving back to society.

They are also driving the agenda on sustainability, mental health, and social responsibility.

Since no-code technologies and generative AI have gotten better, that entry barrier will decline further.

Investors and policymakers will also have to adapt, providing guidance and appropriate channels for responsible funds that take into account the risk and potential of ventures by the youth.

Junior Achievement’s Launch Lesson and accelerators such as Leangap will be at the heart of this talent pipeline.

Featured Image – Freepik

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