Rise in teen entrepreneurs reshaping the future of work

Amaniena is among a rising trend of budding entrepreneurs in Australia. (Supplied)

In short:

Driven by a desire for independence and meaningful work, younger generations account for most of the growth in new businesses, recent data shows.

A financial economist says youths are reshaping the business landscape with their tech-savvy approach, social consciousnesses and innovative spirit.

What's next?

Industry experts advise traditional businesses to adapt to the desire for greater flexibility and mobility among this entrepreneurial cohort or risk being displaced.

Running a cake business on the remote Christmas Island is no easy feat when shipments are limited, but Amaniena is never one to back down from a challenge.

Every month, the 18-year-old entrepreneur flies more than 2,600 kilometres to the nearest city of Perth to collect essential ingredients, such as flour and eggs, in bulk.

"When I get a lot of orders, my supplies usually run out very quickly and it's hard because not everything's at the local shop," she says.  

Amaniena caters to her community's diverse dietary needs. (Supplied)

From fudge brownies to sweet canapés, Ameniena's diverse range of treats fills a gap in the local market, with many of the island's 1,700 residents seeking her catering services.

"Our community is a mix of Christians, Chinese, Malay, so it's hard to find people who are able to cook food that can satisfy everyone's [dietary] needs," she says.

"Because I'm Muslim, most people come to me and request if I could cook little desserts so everyone can eat at their events."

Amaniena says she aspires to open her own restaurant and bakery some day. (Supplied)

Amaniena's thriving new business is part of a wider surge in entrepreneurialism, with millennials (born between 1981-1996) and Gen Z (1997-2012) driving the majority of the growth.

That's according to data from the Commonwealth Bank, which shows millennials accounted for nearly half of all new business transaction accounts in 2023, while Gen Z opened a further 14.8 per cent of new accounts.

At the same time, the data shows more women are running their own businesses, with 43.2 per cent of new business transaction accounts in 2023 opened by female self-starters.

Driven by a desire for independence and meaningful work, these budding entrepreneurs are "significantly reshaping" the business world, financial economist Shumi Akhtar says.

Youths driving a culture shift

An associate professor at the University of Sydney, Dr Akhtar says there's "a growing cultural shift" towards valuing innovation and purpose-driven enterprises.

"These new generations prioritise flexibility, social impact, and digital fluency, which has led to the rise of remote work, gig economy, and socially responsible businesses," she says.

"[They're] also contributing to the creation of new industries and business models that address global challenges such as climate change and social inequalities."

Australian market research firm McCrindle Research found almost nine in 10 Australian students are looking to work in a business they've started themselves.

While earnings are still driving their career decisions, most of the students surveyed consider having purpose and meaning in their work as extremely or very important. 

Reese is the first in her family to run their own business. (Supplied)

For 19-year-old Reese in Darwin, the drive to turn her creative ideas into business opportunities started with selling bracelets she made in school. 

"Ever since I was younger, it was always something fun and rewarding for me," she says.

"I enjoy marketing and the process of creating a brand. I also like having my own niche."

Reese now runs a nail studio from a converted garage in her family home, which she says offers more creative and intricate designs than what other salons offer in her city.

The first in her family to launch their own business, Reese partially credits social media marketing for her success in earning a living from doing what she loves.

Reese leverages social media to grow her customer base. (Supplied)

"I love making social media content and videos, and, again, I don't really see many people in a small town like this [Darwin] do anything like that," she says. 

Dr Akhtar says the rise of digital platforms has significantly lowered the barriers to entry, allowing young entrepreneurs to start businesses with minimal initial investment.

"Digital tools and platforms provide young entrepreneurs with access to a wealth of resources, including online courses, business tools, and networking opportunities," she says.

"The constant exposure to success stories and entrepreneurial content on social media platforms inspires and motivates young individuals to pursue their business ideas.

"The interactive nature of these platforms also fosters a sense of community and support, which is crucial for budding entrepreneurs."

While Amaniena's cake business initially grew through word-of-mouth, she says it was a glowing customer review posted to an online community group that broadened her reach.

"I thought that the support would only come from my friends and family, but it got bigger and tourists started ordering from the nearby Cocos Islands," she says.

"So I would bake something and then put it on a plane to fly down to Cocos — that's how big my business got."

Hybrid work the way of the future

In keeping with their flexible mindset, the emerging workforce (82 per cent) are more likely than Australian workers (62 per cent) to describe their ideal working situation as a hybrid one, McCrindle Research found.

Ashley Fell, the director of advisory at the research firm, says the survey shows younger generations value work-life balance over long-term tenure.

"Every three years, millennials and Gen Z-ers want change, they want something new, they want a new challenge," she says.

Flexible learning showing promise preparing students for hybrid work

A private high school that came under fire for adopting a four-day school week says the feedback to its new timetable, which allows senior students to learn from home on Mondays, has been mostly positive.

According to Ms Fell, their hunger to learn is linked to their entrepreneurial ambitions.

Amaniena, for example, balances her business at the same time as she works as a lifeguard and receptionist.

"I want to try something new, so I've also applied to join the navy as a chef," she says.

"But my main goal is to eventually open up my own restaurant and bakery down in Perth."

Ms Fell says cost-of-living and housing pressures are also fuelling the rise in youths taking on second jobs or "side hustles" to supplement their primary income.

For Reese, that's certainly part of it, with the nail technician saying she's saving up to support herself and eventually launch a larger salon where she can hire other techs. 

"I was doing this for the money, but now I look forward to the job itself because I enjoy what I do and that's really important when you want to do something in the long-term."

Ms Fell says for traditional businesses to retain this new cohort of workers they will have to adapt to hybrid structures and create more career development opportunities. 

They will also have to adapt to their strong emphasis on diversity and inclusion by adopting more equitable practices, Dr Akhtar says. 

"Or [traditional businesses] risk being swiftly displaced by emerging business models and modern working practices."

The ABC's Heywire competition is open to all regional Australians aged between 16 and 22.

The annual competition provides a platform for the younger generation, in pockets of Australia that rarely see the spotlight, to "tell it like it is".

If you are aged between 16 and 22 and would like to find out more about the ABC Heywire Competition, go to the ABC Heywire website.