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Youth entrepreneurship: Building blocks for your budding entrepreneurs

Help your kids turn that fun business idea into a full-time hustle with government resources and virtual skill-building tools.

Zeba Khan Aug. 23, 2021 5-minute read

Youth entrepreneurship will arguably grow like wildfire in the Canadian business ecosystems. After being stuck at home for a few years, many young minds with bright business ideas became restless to start their ventures, whether on TikTok, Instagram or on social media in general. What’s more, it became evident that doing business in a traditional “brick and mortar” sense was no longer necessary.

Generation Z — made up of those aged between 10 and 20 years old, the children of Gen Xers — isn’t only the fastest growing generation out there but also the most disruptive, according to global research conducted by Bank of America Opens in a new window.. The research found that “Gen Z’s economic power was the fastest growing across all generational cohorts. This generation’s income is expected to increase fivefold by 2030 to $33 trillion as they enter the workplace, accounting for over a quarter of global income and then surpassing millennials’ income by 2031.”

It sounds overwhelming but does it make sense? The short answer is “Yes.”

Gen Z, raised with iPads and smartphones, is naturally more tech-savvy than their digitally native “late Millennial” parents or older siblings. Needless to say, they moved on from texting and typing to voice control and AI a long time ago. They’ve also grown up with apps, fin-tech and visual learning, and aren’t likely to dip their toes into traditional ways of doing things — whether that’s banking or building businesses. All this is to say, when it comes to technology, Gen Z knows how to crack the code — sometimes literally, if we’re talking about programming.

When it comes to entrepreneurship and building businesses from scratch, Gen Z will find its customers and sell online. Sixty-two percent of the Gen Z population wants to start their own company or have already done so, notes Microsoft Opens in a new window.. The reason for this is their entrepreneurial ambitions are driven by living a “debt-free, purposeful life and being good to the planet,” according to Forbes Opens in a new window..

That said, while young entrepreneurs don’t need lessons on how to build a business online or on social media — they’d probably be the ones teaching — they do need some guidance on the “off-line” and traditional world of running a business that still exists to help keep their goals on track.

Here is a list of guidelines that may help your kids learn to bring their passion projects and innovative business ideas to life:

1. Find your funding

There are several government programs that your kids can take advantage of to fund that new start-up. Below are a few highlighted by the Canadian Youth Entrepreneurship Guide Opens in a new window..

The Junior Achievement Canada program: Opens in a new window.

The Junior Achievement Canada program is a national platform that teaches young entrepreneurs financial literacy, work readiness and entrepreneurial skills. For example, with this program, young business owners can learn skills like creating and managing wealth, networking and collaborating with diverse teams, and writing a great business plan. Junior Achievement Canada also offers young entrepreneurs of all ages, but typically students in grades 3 to 12:

Awards and scholarships Opens in a new window.
Business tools and games Opens in a new window.
Additional resources in the Junior Achievement Digital Campus Opens in a new window.

Futurpreneur Canada Start-up Program Opens in a new window.

Another great program is the Futurpreneur Canada Start-up Program. This program offers young business starters — the “older Gen-Z” — a loan of up to $20,000 from Futurpreneur Canada and up to $40,000 through a special partnership with the Business Development Bank of Canada (BDC), when eligible.

“To be eligible, you should:

Be between the ages of 18 and 39
Create a business plan for a business that will employ you full time
Work with a mentor for 2 years
Own at least 51% of your business”

This program goes beyond just funding a loan. It offers mentorship and business guidance to help youth run and grow their business for 2 years with a dedicated business expert. Futurpreneur also provides a program that is catered and inclusive towards Black entrepreneurs Opens in a new window.. Similarly, it has a program that is catered to young Indigenous folks Opens in a new window..

Rise Small Business Lending Program Opens in a new window.

Rise is here to help young business owners who are trying to juggle both business-building and mental health.

Through the Rise Small Business Lending Program, entrepreneurs aged 16 to 29 who face mental health or addiction challenges receive $300 to $10,000 to help start and grow their businesses. To be eligible for the program, an applicant must:

Be a motivated entrepreneur
Self-identify as an individual who has experienced mental health conditions or addiction
Be unable to access traditional bank financing for their small business
Not be in active bankruptcy, behind on child support payments or government taxes
Be a Canadian citizen or landed immigrant

Rise also offers business development, mentoring and free virtual and in-person coaching to young entrepreneurs.

It’s important to note that your child will need to deposit these funds somewhere. It will be important to help your child open a business account, as they likely won’t be able to do so on their own. Here’s everything you need to know about how to open your first business bank account.

Open a new CIBC Business Operating Account^®

Whether you’re growing, expanding or establishing your first business account, every entrepreneur deserves an account that fits.

Learn more Apply now

2. Learn the “legals”

Now that we’ve covered funding, let’s talk about the rules and regulations.

One tip for young entrepreneurs who have access to all kinds of information online, is to get their info from relevant sources. Important details on registering your business, paying taxes and hiring employees can be found on the Government of Canada Opens in a new window. website.

According to the Youth Entrepreneurship guide: “There is no minimum age for starting a business. However, you need to be at least 18 years old to sign contracts or other legal documents. If you are under 18 and starting a business, you may need someone who is over 18 to sign legal documents on your behalf. Discuss your business ideas with a parent or guardian before you start.” To anyone under 18 reading this, hey, we’re just the messengers.

But in all seriousness, 18 might seem far away, but it’s smart to be prepared in advance. To guide your young ones through the nitty-gritty of launching their own companies, we have a helpful checklist. Included on it are tasks like registering your business name and getting a GST or HST. Parents and guardians, let’s just say when the time comes, you might find this checklist handy, so make sure it’s saved in those bookmarks.

Young entrepreneurs should also note that their businesses may need licences and permits from the federal, provincial and municipal levels of government. To find licences and regulations that may affect your business, check out BizPaL Opens in a new window..

3. Keep learning

Another source that not only provides funding, but also gives practical business advice and resources to youth is BDC Opens in a new window..

Imagining, learning and assessing your business idea on an ongoing basis are keys to business improvement and innovation.

To help young entrepreneurs clear any doubts, BDC offers an Entrepreneurial Potential self-assessment Opens in a new window.. The test asks a series of questions to help young entrepreneurs learn more about their business personalities. Sometimes practice can really make perfect, so allow your business-loving kids at home to start young and learn how to write a business plan with BDC’s business plan template Opens in a new window..

Young entrepreneurs are great at social-media engagement and creating accessible content, and are great when it comes to acquiring lots of skills in a short time-span. It’s never too early or too late to start the entrepreneurship journey with your kids. Learn more about entrepreneurship from other business owners and get the latest tips to help your kids learn the foundations of starting a business.

To learn more about youth entrepreneurship or starting a business, meet with a CIBC Business Advisor Opens in a new window.. We’re here to help you achieve your goals.

Here’s how CIBC can help

If you’re a young and budding entrepreneur who has started or is looking to start your own business, we can help.

Connect with a dedicated CIBC Business Advisor who will work with you to understand your needs, provide expert advice and customized financial solutions. Whether you need to clarify your borrowing options, learn how to set up a business account, or you just need an extra set of eyes, we’ll make it easy for you to make your ambitions a reality.

Want to open a business account? Here are the accounts we offer to fit your business
Interested in marketing your business? Learn how to build your brand presence through digital marketing (PDF, 5.4 MB) Opens in a new window.
Need help managing your budget? Check out our cash management opportunities

To discuss your Business Banking needs

Book a chat with one of our advisors. They can help set you up for success, today and into the future.

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Written by
Zeba Khan

Zeba Khan is a content creator and communications professional based in the Greater Toronto Area.

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Youth entrepreneurship: Building blocks for your budding entrepreneurs

1. Find your funding

The Junior Achievement Canada program: Opens in a new window.

Futurpreneur Canada Start-up Program Opens in a new window.

Rise Small Business Lending Program Opens in a new window.

Open a new CIBC Business Operating Account®

2. Learn the “legals”

3. Keep learning

Here’s how CIBC can help

To discuss your Business Banking needs

Contact us

Open a new CIBC Business Operating Account^®