Social media platforms are becoming powerful tools for youth entrepreneurship, significantly impacting small business revenue and the US GDP. Platforms such as Instagram, Facebook, TikTok, Pinterest, and LinkedIn are cost-effective channels for entrepreneurs to present their ideas to a global audience and interact with vast clientele. The platforms’ exceptional advertising and marketing potential and instant feedback mechanism are crucial to improved business strategies and innovation, promoting entrepreneurship among young individuals and contributing to the US economic prosperity.
In 2023, the growth of small businesses and the national economy significantly benefited from TikTok, contributing $14.7 billion and $24.2 billion, respectively, and creating over 224,000 jobs. Small businesses tapped into new customer bases, leading to increased income, particularly for businesses in the fashion, food, and digital services fields. This job creation was not limited to industrial states like California, Texas, Florida, New York, and Illinois. Still, it transcended national borders, showcasing the economic expansion potential of social media channels.
While young entrepreneurs understand the potential gains from leveraging social media for business, concerns about possible platform bans and data privacy regulations generate uncertainty. Despite these concerns, the benefits associated with brand awareness, customer engagement, and digital advertising are substantial, necessitating entrepreneurs to balance capitalizing on these platforms and risk mitigation.
Corporate giants Alphabet Inc. and Microsoft Corporation play a significant role in fostering youth entrepreneurship. Google for Startups, a product of Alphabet Inc., gathered $7.8 billion in funding in 2022, offering essential resources to assist startups and create over 200,000 jobs.
Social media’s role in youth entrepreneurship growth
On the other hand, Microsoft for Startups allocated $120 million towards aiding young businesses, providing technical resources, access to business experts, and Microsoft customers. These initiatives are critical in establishing a tech-driven entrepreneurial culture among young people.
The Founder Hub by Microsoft allows startups to access up to $150,000 in credits for AI models like OpenAI GPT-4 and facilitates one-on-one discussions with business experts. This platform provides valuable resources to enhance the growth and development of innovative ventures, establishing a conducive environment for knowledge exchange.
The rise of entrepreneurship has spurred freelancing and drop-shipping options for university students. Enterprises like Upwork Inc. connect businesses with independent professionals, while platforms like Shopify Inc. enable individuals to set up online ventures. In this digital age, educational programs focused on digital marketing and e-commerce are burgeoning as governments provide financial incentives and policy guidance to boost entrepreneurship. The evident shift towards entrepreneurship and dependency on digital platforms is becoming a mainstay in the global economy, fuelled by technological advancements.
