In the bustling streets of the Mexican state of Campeche, 17-year-old Franco Zamudio embodies a new wave of young entrepreneurs. “When I was fifteen, I started my first six-figure business in e-commerce,” he recalls. “It was an incredible experience, but the real challenge? Managing the money: handling it well, growing it well.”

Franco was heavily involved in social media marketing, even opening his own marketing agency at a young age. He grew brands and influencers, leveraging channels such as Instagram and TikTok to create viral campaigns for clients. His story represents a global trend. For these ambitious youth, launching a business is just the beginning. Their true focus lies in mastering financial literacy: a crucial skill for sustaining and expanding their ventures in today’s competitive business world.

This trend for young entrepreneurs is not merely anecdotal. In a 2021 survey by Junior Achievement USA, 60% of those aged 13 to 17 said that entrepreneurship is better than traditional employment. Some 61% of teen girls and 54% of teen boys have thought about starting a business, according to another report by leading professional services firm Ernst & Young. Indeed, many have already taken it upon themselves to start up their ventures.

This surge in teenage entrepreneurship is an influential change where financial self-reliance and business skills are becoming top priorities among today’s youth. This is fueling innovation and economic advancement, shaping the path for a future workforce composed of ambitious and go-getter personalities.

The power of social media

Social media platforms play a crucial role here. In particular, the power of virality on TikTok, which rose to prominence during the Covid-19 lockdown in early 2020, is unparalleled.

TikTok, founded in 2016 by the Chinese start-up ByteDance, has grown into a global phenomenon boasting over one billion active monthly users. Its intuitive video creation tools and trending content provide teens with an unmatched potential to quickly garner followers and customers. The rise of TikTok has made young entrepreneurs grow at tremendous speed.

Georgia, US-born rapper MattyB (real name Matthew David Morris) was able to leverage his early success on YouTube to build up a TikTok following. His short-form music videos went viral on TikTok, which significantly increased his fan base and led to some very profitable brand partnerships. He has garnered 3.5 million followers on TikTok and a similar number on Instagram.

Emma Chamberlain of Chamberlain Coffee ventured into social media through YouTube; her coffee company quickly expanded into a multi-million-dollar firm. Feeling the power of her influence, she then took to TikTok, launching her business on the platform at the age of 19. Chamberlain, now aged 23, shows how young entrepreneurs use social media to build a successful and sustainable business venture.

Instagram has also been instrumental in the success of many teen entrepreneurs.

Moziah Bridges, owner of Mo’s Bows, started his bow-tie business in Memphis at the tender age of nine. His transformation from a little boy with a passion for fashion into a successful businessman stands testament to the promise that comes with social media, given the proper application.

Thanks to a great use of Instagram to display his colorful designs, Moziah, now 18, has amassed a huge fan following. In 2015, he appeared on ABC’s Shark Tank, which became a defining moment for him as an entrepreneur. The business reality show supports startups, providing them with invaluable exposure and investment. Although Moziah didn’t land a deal with the “sharks” (investors), the publicity upped his brand’s visibility to create increased demand, allowing him to effectively scale his business.

Through proper and strategic utilisation of social media platforms, among other tools, young innovators can transform their passions and hobbies into successful business concepts that leave long-lasting impacts. The success stories of Matthew, Emma, and Moziah, illustrate the extent to which integrating social media knowledge with traditional business opportunities could result in high-speed business growth.

Financial literacy is key

While teen entrepreneurship holds massive potential, it’s important to recognise the challenges ahead. Building up a business and meeting professional objectives are in themselves a very daunting task. On top of this, you have to handle academic and other co-curricular demands.

Franco insists that resilience is critical, as the road to success is certainly not easy: “It takes dedication, persistence, and a real commitment to learning from each mistake. You have to invest in your knowledge, into educating yourself.” A support network is crucial, he says. “Mentors, relatives, family, or friends who believe in you can go a long way in helping you.”

In addition to the practical challenges of running a business, young entrepreneurs must also navigate the nuances of personal financial literacy. According to Forbes, more than 40% of American respondents said their income would only cover the bills for each month, meaning they were basically living from paycheck to paycheck.

This underscores the necessity for teenagers to understand how to budget, save, and invest, to avoid falling into a similar situation. After learning these fundamental skills, they will be able to control their resources, set priorities on spending, and hence realize any available chance of growth or investment.

However, a significant gap exists in this area: according to annuity.org, in 2021, 73% of teens said they want more personal finance education, and 75% said they don’t have confidence in their knowledge of personal finance. These alarming statistics highlight a dire need for thorough financial education to better prepare students for life – not just the practicalities of business.

Many turn to online resources and educational platforms; websites, podcasts, and YouTube channels devoted to personal finance and entrepreneurship offer practical advice and diversified insights. For instance, platforms such as Khan Academy and Coursera provide free courses on financial literacy and investment. Even so, these are insufficient to bridge the gap in financial education.

Given that some teens spend upwards of a third of their day at school, it is evident that school plays a critical role here. Courses on personal finance could be incorporated into academic programs

Also, personal finance education has wide-ranging consequences in terms of global economies. Making young entrepreneurs financially literate will boost economic productivity and improve the standard of living. Financially literate people are better able to make rational decisions and well-informed judgments, and manage financial resources.

The sentiment expressed by Franco —“The best time to plant a tree was 20 years ago. The second-best time is now” — resonates deeply. This ancient Chinese proverb reminds us that it’s never too late to learn something new.

For young entrepreneurs, the journey to financial literacy and business success is just beginning; with the right resources, education, and support, they are well positioned to shape the future, driving innovation, economic growth, and uplifting communities. Embracing these opportunities with determination and knowledge can pave the way for a more prosperous and inclusive future for all.