# How can a 16-year-old go about starting their own small business?

colossis.io · August 4, 2026

> Only 3% of 16-year-olds in the US start their own business, while 51% of adults consider entrepreneurship as a viable career option. Laws vary by...

**Only 3% of 16-year-olds in the US start their own business**, while 51% of adults consider entrepreneurship as a viable career option.

**Laws vary by state**: 16-year-olds should research local laws and regulations regarding minors and business ownership, as some businesses may require adult co-ownership.

**Also worth reading:** [How realistic is starting a business in today's market and what are the associated costs?](https://colossis.io/knowledge/how_realistic_is_starting_a_business_in_todays_market_and_what_are_the_associated_costs.php) · [What is an AI disclosure policy template and why does it matter for my business in 2026?](https://colossis.io/knowledge/what_is_an_ai_disclosure_policy_template_and_why_does_it_matter_for_my_business_in_2026.php) · [How can I make responding to RFPs more exciting and effective for my business?](https://colossis.io/knowledge/how_can_i_make_responding_to_rfps_more_exciting_and_effective_for_my_business.php)

**Parental involvement is crucial**: Many 16-year-olds will need a parent or guardian to cosign business agreements, as minors cannot enter into contracts.

**Start small**: 70% of all small businesses start with an initial investment of less than $10,000.

**Most successful businesses start as side hustles**: 60% of entrepreneurs started their business as a part-time venture before quitting their day job.

**Tutoring is a lucrative business idea**: 16-year-olds can offer tutoring services in a subject they excel in, with rates ranging from $20 to $50 per hour.

**The Small Business Administration (SBA) offers resources for young entrepreneurs**: The SBA provides guidance, loans, and training for young entrepreneurs.

**Online businesses have low startup costs**: Starting a YouTube channel, blog, or affiliate marketing business can be done with minimal upfront costs.

**Pet sitting is a growing industry**: The pet sitting industry is projected to reach $2.5 billion by 2025, making it a lucrative business idea for 16-year-olds.

**Car washing services can be profitable**: A single car wash can generate $10 to $20 in revenue, making it a viable business idea for 16-year-olds.

**40% of small businesses fail due to lack of planning**: Thoroughly researching and planning a business idea is crucial to its success.

**The most successful entrepreneurs are versatile**: 80% of entrepreneurs consider themselves " serial entrepreneurs," starting multiple businesses throughout their lifetime.

**Babysitting services are in high demand**: 16-year-olds can offer babysitting services, with rates ranging from $10 to $20 per hour.

**Printing on-demand products can be lucrative**: 16-year-olds can design and sell print-on-demand products, such as t-shirts or phone cases, with minimal upfront costs.

**The SBA offers microloans for young entrepreneurs**: The SBA provides microloans of up to $50,000 for young entrepreneurs to start or expand their business.

**Only 20% of small businesses survive past the first year**: Thorough planning, research, and adaptability are crucial to overcoming the challenges of starting a business.

Canonical: https://colossis.io/knowledge/how_can_a_16-year-old_go_about_starting_their_own_small_business.php
Markdown: https://colossis.io/knowledge/how_can_a_16-year-old_go_about_starting_their_own_small_business.php/index.md