Kids today are redefining entrepreneurship. Gone are the days when lemonade stands and bake sales were the go-to ventures. Now, young entrepreneurs are creating craft businesses, launching YouTube channels, and even building eco-conscious brands. This shift is driven by technology, changing values, and a focus on creativity and impact.
Key Highlights:
- 8 out of 10 kids want to be their own boss, and 4 out of 10 aim to start a business.
- Traditional teen employment has dropped from 45% (1950–2000) to just 26% in 2011.
- Modern kid businesses focus on crafts, sustainability, and digital tools.
- Examples include Gabby Goodwin’s GaBBY Bows and Riley Kinnane-Petersen’s jewelry brand Gunner & Lux.
Skills Kids Gain:
- Problem-solving and adaptability
- Financial literacy and money management
- Confidence and communication skills
How Parents Can Help:
- Encourage their passions and guide them through creating a simple business plan.
- Provide resources like startup funds or business kits.
- Ensure safety and legal compliance, especially for online ventures.
- Celebrate wins and use setbacks as learning moments.
Kid entrepreneurship isn’t just about earning money - it’s about building life skills and shaping the future. Dive into the full article to learn how today’s young innovators are turning hobbies into thriving businesses.
From Cookies to Crafts: How Kid Businesses Have Evolved
Old School Ventures: Lemonade Stands and Bake Sales
For generations, lemonade stands have been a classic way for kids to dip their toes into the world of business. This tradition, deeply rooted in American culture, gained popularity in the 1800s. It wasn’t just about selling a refreshing drink - it was a hands-on lesson in managing money, handling inventory, and interacting with customers. With minimal startup costs - just lemons, sugar, water, and a table - these ventures were accessible to nearly any child. Edward Bok, a Dutch immigrant, even helped boost the concept’s popularity in the 1870s by starting his own lemonade stand.
But lemonade stands weren’t the only way kids learned entrepreneurial skills. Bake sales, dog walking, and lawn mowing were other simple yet effective ways for young people to earn money and learn the basics of running a business. These early ventures not only taught practical skills but also planted the seeds for the creative and ambitious businesses we see today.
Today's Trends: Craft Businesses and Personal Touch
Fast forward to today, and kid-run businesses have taken a creative turn. Modern young entrepreneurs are leaning into craft-based ventures that reflect their individuality and innovative spirit. Take Gabby Goodwin, for example. Frustrated with hair barrettes that didn’t stay in place, she teamed up with her mom to create GaBBY Bows - a double-snap barrette designed to solve the problem. Then there’s Nic Bianchi, who turned a candle-making kit he received for his 12th birthday into Bianchi Candle Co., a thriving business born from his curiosity about the science behind candles.
Another standout is Riley Kinnane-Petersen, who started with a traditional lemonade stand but added a twist: handmade necklaces crafted from old jewelry parts. When her father shared her designs on Instagram, they quickly gained attention, leading to the creation of Gunner & Lux, a successful jewelry brand.
These stories highlight how today’s young entrepreneurs are blending traditional business skills with personal creativity. Rather than sticking to tried-and-true formulas, they’re finding ways to turn their passions into thriving enterprises. And the results can be impressive - just look at the massive success of YouTube channels like Ryan’s World and Vlad & Niki, which show the earning potential of modern entrepreneurial ventures. It’s clear that creativity, paired with technology, is reshaping the way kids approach business.
Why Kids Are Moving to Craft-Based Businesses
The shift toward craft-based businesses reflects more than just a modern flair - it’s a response to changing values and opportunities. While lemonade stands and bake sales taught foundational skills, today’s ventures are powered by global reach and digital tools. Online platforms make it easier than ever for young entrepreneurs to connect with customers far beyond their neighborhoods. Social media, too, has become a powerful tool, enabling kids to promote their products and build their brands.
But it’s not just about technology. Many young entrepreneurs are driven by values like sustainability and social impact. Research shows that 18–34-year-olds are more likely than older generations to prioritize eco-friendly practices (61% versus 47%) and take steps to reduce their environmental footprint (66% versus 44%). They’re also more focused on creating a positive social impact (55% compared to 36%).
Donna Kelley, a professor of entrepreneurship at Babson and co-leader of the GEM U.S. team, observed, "With an increase in young adult entrepreneurship, along with their focus on social and environmental impact, this year's GEM findings indicate a bright future for entrepreneurship."
The rise of STEAM (science, technology, engineering, art, and math) has also played a role. Crafting now often involves hands-on projects that combine creativity with technical skills, offering kids a chance to learn while doing. This active, hands-on approach aligns with the mindset of today’s young entrepreneurs.
As Abdaal Mazhar Shafi, cofounder of UpstartED, put it, "They want to move quickly. And it's not just about reading - they want to do something about it."
The combination of creativity, technology, and values is shaping a new generation of kid entrepreneurs, who are crafting businesses that are as meaningful as they are innovative.
Teach kids entrepreneurship today for their success tomorrow | Brian Weisfeld | TEDxLAHS
Key Skills Kids Learn Through Business
When kids dive into running their own businesses, they’re not just earning pocket money - they’re gaining skills that will stick with them for life. These ventures teach them how to think critically, solve problems, manage money, and communicate effectively. Together, these lessons lay the groundwork for success, no matter what path they choose later on.
Problem-Solving and Thinking Skills
Running a business isn’t always smooth sailing, and that’s where kids start sharpening their problem-solving skills. Unlike textbook problems with clear answers, real-world business challenges require creative thinking and adaptability. For instance, a child making and selling bracelets might find their products breaking too easily. That’s when they have to dig into research, test new materials, or tweak their designs. Similarly, a young pet-sitter might need to figure out how to care for a picky eater or coax a shy cat out of hiding.
These moments teach kids to analyze problems, brainstorm solutions, and test their ideas. Over time, they build confidence in their ability to handle the unexpected.
"Kids in all age ranges, face problems and challenges every day. Our job is to prepare them for these decisions by teaching them how to solve problems by themselves."
The benefits of these problem-solving skills go beyond business. Whether it’s tackling schoolwork, navigating friendships, or making personal decisions, kids learn to approach challenges with a can-do attitude. They also discover that setbacks aren’t the end of the road - they’re opportunities to learn and improve.
Parents can help nurture these skills by asking open-ended questions when their child faces a challenge. Instead of jumping in with solutions, try asking, “What do you think you could do to fix this?” or “What might happen if you tried that idea?” This approach encourages kids to think independently and builds their confidence in solving problems on their own.
Money Skills and Financial Management
One of the biggest lessons kids learn through business is how to handle money. From calculating costs to setting prices, they get hands-on experience with financial concepts. For example, a child running a craft business quickly learns that selling $50 worth of bracelets doesn’t mean they made $50 - they still have to subtract the $20 they spent on supplies.
This process teaches kids about budgeting, pricing, and tracking profits. They also learn to make decisions about reinvesting in their business versus saving or spending their earnings. It’s a crash course in financial responsibility that many adults wish they’d had earlier in life.
The importance of financial literacy becomes clear when you look at the numbers. According to the National Financial Educators Council, over half of participants aged 15-18 failed the 2025 National Financial Literacy Test, with an average score of just 67.4%. Meanwhile, U.S. credit card debt hit a staggering $1.211 trillion by the end of 2024.
"Teaching kids about financial literacy and money management is a crucial part of preparing them for the future." - Adam Toren
By managing their own business finances, kids learn that money is a limited resource that requires careful planning. For example, a child might save up to invest in higher-quality craft supplies, learning the value of delayed gratification and smart spending.
Parents can support this learning by helping their child set up a simple system to track income and expenses. Even something as basic as a notebook can make the connection between costs and profits crystal clear.
Confidence and Communication Skills
On top of problem-solving and financial know-how, running a business gives kids a major boost in confidence and communication. There’s nothing quite like seeing your ideas come to life and realizing they can generate real results. When kids achieve success through their own efforts, they develop a deep sense of pride and self-belief.
"Confidence is built through achievement. When kids see that their hard work and creativity can produce real results, they feel a sense of pride in their accomplishments." - Matthew Toren
Business ventures also help kids become better communicators. Whether they’re explaining their products, answering questions, or handling customer concerns, they learn how to express themselves clearly and professionally. For instance, a child selling candles at a craft fair might describe scents, explain prices, and make customers feel welcome. These interactions teach vital skills like active listening, clear explanations, and building rapport.
The communication skills kids gain go far beyond sales. They learn to present their ideas with confidence, whether it’s pitching a new product to family or sharing their business plans with friends. Some even discover a knack for public speaking, a skill that will serve them well in school and future careers.
Parents can encourage these skills by role-playing customer interactions with their child. Practice scenarios like explaining product features, negotiating prices, or addressing complaints. This kind of preparation helps kids feel more confident when dealing with real customers and sets them up for professional success down the road.
Together, these skills - problem-solving, financial literacy, and communication - form a strong foundation for future growth. Kids who master them through entrepreneurship often become more independent, resilient, and self-assured in all areas of their lives.
How to Support Your Child's Business Journey
Helping your child explore the world of entrepreneurship can be an exciting adventure, but it also requires your active involvement. As a parent, you play a key role in guiding them through this process and teaching them valuable lessons along the way.
Providing Resources and Guidance
Every successful business starts with the right tools and support, and your child's venture is no different.
Begin by helping your child brainstorm ideas that align with their skills and interests. For example, if they enjoy crafting friendship bracelets, explore ways they could sell them. If they're great with animals, a pet-sitting service could be a perfect fit. The goal is to match their passions with opportunities that have real potential.
Once they’ve settled on an idea, walk them through creating a simple business plan. This doesn’t have to be overly detailed - just enough to cover the basics: Who are the customers? What will it cost to produce? How much should they charge? This process not only encourages critical thinking but also gives them a clear roadmap to follow.
You can also act as their first investor by providing startup funds. For instance, in 2024, middle schoolers at Guidepost Academy in Toronto launched two businesses: Grass Busters, a lawn care service, and Treats N’ Tails, a homemade dog treat company. Parents helped by donating equipment and covering initial costs, but the students were responsible for repaying those investments through their earnings.
Make sure they have the tools they need to succeed. This might include simple systems for tracking income and expenses, setting up an online store, or creating supervised social media accounts for marketing. For tasks that require adult involvement - like registering for local craft fairs or markets - step in to help.
"When starting any kind of business, there is a lot you don't know, and the only way to accelerate your learning curve is by trying many things. Trying and failing isn't something to avoid. Fail fast and learn faster." - Nick Mares, Founder of Kettle & Fire
While it’s important to guide them, resist the urge to take over. Encourage independence by asking open-ended questions like, “What do you think would happen if you tried that?” This approach builds their confidence and problem-solving skills.
Don't forget to ensure their business is safe and follows all necessary legal guidelines.
Ensuring Safety and Legal Compliance
Keeping your child’s business safe and legal is an essential part of your role. As the adult, you’ll need to handle the more technical aspects of compliance.
Start by familiarizing yourself with child labor laws. Federal and state regulations limit the kinds of jobs, hours, and equipment kids under 18 can use. These rules are designed to protect children, so make sure you know what’s allowed in your state before your child begins.
If your child’s business involves making or selling products, you’ll need to register at SaferProducts.gov. The Consumer Product Safety Commission (CPSC) has strict guidelines on labeling, tracking, and age grading. It’s much easier to choose compliant materials from the beginning than to make changes later.
For example, in 2024, students at Guidepost Academy in Austin launched Railway Sandwiches, selling lunches to their school community. To meet health standards, each student earned a food handler’s license. This step ensured they operated within the law and maintained safety standards.
Online safety is another critical area, especially if your child plans to sell through websites or social media. The Children’s Online Privacy Protection Act (COPPA) limits the collection of personal information from kids under 13. According to the Federal Trade Commission:
"The primary goal of COPPA is to place parents in control over what information is collected from their young children online."
Monitor your child’s online activities and teach them how to protect personal details, such as avoiding the public sharing of addresses or phone numbers.
If your child’s business involves physical products or services, consider getting business insurance. While it might seem unnecessary for a small venture, it provides peace of mind and introduces your child to the concept of managing risks.
Beyond safety and logistics, keeping the experience enjoyable is just as important.
Keeping It Fun While Learning
For kids, the best entrepreneurial experiences feel more like play than work. When they enjoy what they’re doing, they stay engaged and motivated.
Focus on their interests and strengths to keep them excited. For instance, if your child loves art, help them explore ways to sell their creations. If they’re into science, they might enjoy creating and selling simple experiment kits or educational tools.
Set up a dedicated space with materials like art supplies or building kits. Having their own workspace shows them that their efforts are valued and gives them a place to focus without disrupting the rest of the household.
Turn everyday moments into learning opportunities. Grocery shopping, for example, can be a chance to talk about pricing strategies or customer preferences. Or, let them help plan family events, encouraging them to think creatively about food, activities, and decorations.
You can also create a mini market at home, where they can practice customer interactions and handling money. Make it fun by playing different types of customers - some friendly, some skeptical, and some who need convincing.
Celebrate both wins and setbacks as part of the learning process. When things go well, praise their hard work and smart decisions. When mistakes happen, use them as teaching moments to discuss what went wrong and how to improve. This approach helps them build resilience and understand that failure is just another step toward success.
Introduce them to stories of other young entrepreneurs for inspiration. For example, Riley Kinnane-Petersen started her jewelry business, Gunner & Lux, at just five years old and eventually collaborated with brands like J. Crew and West Elm Kids. Stories like these show kids what’s possible when they combine passion with persistence.
When possible, make entrepreneurship a family activity. Whether it’s helping with transportation to craft fairs, assisting with online orders, or offering encouragement, your involvement shows that you believe in their abilities and value their efforts.
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Success Stories: Kids Who Made It Work
Stories of young entrepreneurs prove that passion and determination can turn simple ideas into thriving businesses. These kids didn’t just dream - they acted, showing that success doesn’t have an age limit.
Chloe's Slime Business: Fun Meets Profit
At just eleven years old, Chloe swapped the traditional lemonade stand for something trendier - a slime business. She created a slime kit that included everything from glitter and charms to marketing flyers. On her first day, she earned over $100 in just one hour. Chloe’s success came from understanding what her customers wanted, teaching her valuable lessons about pricing, customer preferences, and the joy of earning money.
Craft Fair Stars: Local Markets as Launchpads
Community craft fairs and local markets have become stepping stones for many young entrepreneurs. Take Alina Morse, for example. At age 7, she launched Zolli Candy after noticing the lack of healthy candy options. Her sugar-free, tooth-friendly lollipops not only made it into major retailers but also supported her mission to promote dental health through her Million Smiles Initiative.
Moziah Bridges, or "Mo", started Mo's Bows at the age of 9 when he couldn’t find stylish bow ties for kids. What began as a small Etsy shop grew into a national brand offering bow ties, neckties, and more, available in stores across the U.S.
Maddie Rae saw an opportunity during the 2017 slime craze when glue shortages became a problem. She teamed up with her dad to create glue specifically designed for slime-making. Her product line is now sold both online and in stores.
These local success stories highlight how kids can turn creative ideas into real businesses, a trend that’s expanding into the digital world.
From Hobby to Online Store
Building on their early wins at local markets, many young entrepreneurs are now scaling their businesses online, turning hobbies into booming ventures.
Mikaila Ulmer started Me & the Bees Lemonade at just 4 years old after a bee sting sparked her interest in protecting pollinators. Using her great-grandmother’s flaxseed lemonade recipe, sweetened with local honey, Mikaila created a product that not only tastes amazing but also supports bee conservation efforts.
At 14, Benjamin Stern invented Nohbo Drops - single-use, water-soluble packets for shampoo, conditioner, and other personal care products. His idea to combat plastic waste even caught the attention of investors on Shark Tank.
Hannah Grace turned a challenge from her dad into BeYOUtiful, a bath product brand that donates a portion of its sales to the Juvenile Diabetes Research Fund.
Cory Nieves, at just 6 years old, started selling hot cocoa and lemonade to save up for a car. His venture eventually evolved into Mr. Cory’s Cookies, which now partners with retailers and nonprofits.
"Don't wait to be older - just start with what you have and keep going." - Alphonse "Fonzi" Coleman
These examples show that with the right idea, preparation, and support, kids can take small beginnings and grow them into incredible businesses. Everyday ideas can become profitable ventures with a bit of creativity and determination.
Getting Started: Tools and Kits to Launch Their Business
The right tools can transform a simple weekend project into an exciting entrepreneurial venture. Today’s market is packed with business kits and digital tools designed to help young entrepreneurs take their first steps. Here’s a look at some of the best options available.
Business Kits for Kids
Business kits are an excellent way to provide kids with the materials, marketing tools, and resources they need to start their own ventures. They also help develop problem-solving, financial, and communication skills.
The Teen Entrepreneur Toolbox, created by Anthony ONeal and Dave Ramsey, walks teens through eight key steps to launching a business. This kit includes an app, a portfolio book, a training video, a parent's guide, thank you cards, conversation starter cards, and a goal tracker. For younger kids, The Big Startup Guidebook for Kids offers activities that cover essential topics like resilience, market research, sales, marketing, and expense management.
Shopify's Kid Business Starter Kit is a free digital option featuring fun business exercises, branding activities, and inspiring stories of young entrepreneurs. Meanwhile, Young CEO Squad Kits provide hands-on experiences for kids aged 8–12. These include options like a sticker kit for $22.00, a keychain kit for $25.00, and a reusable straws kit for $24.99. Each kit comes with guides and worksheets to teach pricing, sales tracking, and profit calculation.
For a creative twist, the Biz Ops Game turns kids into budding entrepreneurs by simulating the experience of running an airline. Kids plan expenses, make paper airplanes, sell them, and keep detailed financial records.
Digital Tools for Young Business Owners
Digital tools add an interactive layer to learning, allowing kids to exchange information, build basic skills, and improve communication. As Russ Morton, Chief Product Officer at Constant Contact, explains:
"Most small businesses are only marketers by necessity, and they are so busy running the show that it can feel overwhelming to find the time to create and manage marketing campaigns. That's where AI and automation come in."
While digital tools are valuable, it’s important to balance screen time with hands-on learning for a well-rounded experience.
Why My Lil Startup Is the Right Choice
One standout option in the "business in a box" category is My Lil Startup, designed for kids aged 6–12. This kit focuses on sparking creativity and teaching practical skills through a fun slime-making business. Each kit includes materials to make 20 slimes, and if each slime sells for $5, a young entrepreneur could earn up to $100.
The kit comes with step-by-step instructions, marketing flyers, thank you cards, a sales tracker, and success tips. It’s a safe, non-toxic option that builds confidence and money management skills while encouraging kids to enjoy outdoor, screen-free activities.
"My Lil Startup is a fun and inspiring way for kids ages 6–12 to learn entrepreneurship. We provide a 'business in a box' slime kit that encourages creativity and practical business skills through hands-on activities." – My Lil Startup
Parents and grandparents have shared glowing reviews. Tommy Walker said:
"Absolutely love this kit! I bought My Lil Startup for my granddaughter, and she's been obsessed ever since. Not only is she having fun making and selling slime, but she's also learning about money, confidence, and responsibility in the process. It's a perfect mix of creativity and early entrepreneurship. Highly recommend for any young hustler in the making!"
Eric Berman added:
"Coolest thing ever for my little girl. We had so much fun not only playing with the slime but also talking about the business side. My little girl wants to be an entrepreneur like daddy now!"
Some customers have even reported impressive results, with one making over $130 in a single day.
My Lil Startup offers three bundles to fit different needs:
- Starter Kit: $39.95
- Growth Bundle: $59.95 (includes a tablecloth)
- Mogul Bundle: $99.95 (includes refills).
Conclusion: What's Next for Kid Business
The evolution from classic lemonade stands to today’s inventive kid-run businesses highlights just how far young entrepreneurship has come. These days, kids are building slime empires, selling handmade crafts, and transforming hobbies into thriving online ventures.
Recent surveys reveal that 77% of students in grades 5–12 dream of being their own boss, 45% aim to start their own business, and 42% believe they’ll invent something groundbreaking. This entrepreneurial drive is shaping a future where creativity and problem-solving take center stage. As Suzanne Appel puts it:
"I created this program - for kids to learn by doing. Whether they're brainstorming a product, figuring out pricing, or talking to customers, they're building real-world confidence and capability. Our goal is simple: to prepare kids for a future that rewards creativity, grit, and initiative - no matter what path they choose."
Hands-on learning plays a key role in this journey. When kids dive into running their own businesses, they pick up not only entrepreneurial skills but also essential life lessons like financial literacy, communication, and resilience. Parents can nurture this growth by encouraging curiosity, supporting experimentation (even when mistakes happen), and helping with tasks like crafting business plans or acting as a child’s first customer. These experiences turn learning into something practical and fun.
Digital tools also add value to entrepreneurship education. For instance, gamified learning platforms have been shown to boost academic performance by 22%, proving that interactive methods can make learning both effective and engaging. Tools like My Lil Startup provide everything a young entrepreneur needs to launch a slime business or other creative ventures. Research shows that a positive first business experience can inspire kids to keep exploring entrepreneurship.
With 41% of U.S. teens considering starting a business over following traditional career paths, it’s clear that the perception of work and success is shifting. Offering kids the right resources and guidance today helps shape the innovators of tomorrow.
The journey from lemonade stands to creative enterprises is just the beginning. The next wave of kid entrepreneurs will undoubtedly bring ideas and ventures we can’t yet imagine. The future is theirs to build.
FAQs
What steps can parents take to ensure their child's business is safe and follows the law?
To ensure your child’s business runs safely and stays within legal boundaries, start by familiarizing yourself with local regulations for young entrepreneurs. These can include age restrictions, necessary permits, and business licenses. In many states, minors need parental consent and formal registration to legally operate a business.
It's also important to help your child develop essential financial skills. Teach them how to keep accurate records and understand their tax obligations. If their business involves selling products or providing services to the public, make sure everything complies with safety standards and consumer protection laws. Parental supervision is crucial in managing these responsibilities and creating a positive, educational experience for your young entrepreneur.
How can kids effectively promote their craft businesses online?
To get their craft businesses noticed online, kids should begin by figuring out their target audience. Knowing who might appreciate or need their creations allows them to focus on crafting content that resonates with potential customers.
Platforms like Instagram and Facebook offer excellent opportunities to showcase their handmade crafts. By sharing eye-catching photos, fun videos, and engaging stories, kids can draw attention to their work. With guidance from parents, they can even set up an online shop on marketplaces tailored for handmade goods, making it easier to connect with buyers.
These efforts not only help promote their crafts but also teach kids valuable lessons in creativity, communication, and running a small business.
How do craft-based businesses help kids build important skills compared to traditional ventures like lemonade stands?
Craft-based businesses offer kids a chance to develop skills that go far beyond what they might learn from running a lemonade stand. By making and selling their own crafts, kids get to unleash their creativity and imagination, which helps them learn to think in new and inventive ways. Plus, they improve their fine motor skills and hand-eye coordination as they work on their projects. On top of that, they also tackle real-world challenges, like designing products or figuring out how to meet customer needs, which sharpens their problem-solving and critical thinking abilities.
While lemonade stands are fantastic for teaching the basics of business - like understanding pricing, budgeting, and interacting with customers - craft-based ventures take things a step further. Kids feel a stronger sense of pride and accomplishment as they see their handmade creations come to life and resonate with others. This process not only boosts their confidence but also nurtures emotional intelligence and an entrepreneurial mindset. By blending creativity with business skills, these experiences lay a strong foundation for future success.
