Research has shown that entrepreneurial traits emerge in children at a very young age; often by the time they hit grade school. Marilyn Kourilsky, former Director of the Center for Entrepreneurial Leadership, has found that as many as one in four kindergarteners demonstrate entrepreneurial qualities such as:
- a taste for risk-taking
- creative problemsolving abilities
- and high internal motivation to succeed (as cited in Gutner, 1994).
In order for children to preserve entrepreneurial tendencies into their teenage and adult years, parents must encourage, support, and facilitate their child’s ambitions and endeavors. This digest presents ideas about how parents can cultivate entrepreneurial abilities in their children, provides tips on how to support young entrepreneurs as they begin their businesses, identifies common stumbling blocks to success, and lists several programs and resources that can help to encourage children in entrepreneurial pursuits.
Cultivating Entrepreneurial Abilities
For young entrepreneurs to be successful, they must have strong analytical skills and curious spirits. Development Center in Pennsylvania, recommends that parents frequently ask their children for opinions and help in making adult decisions as a way to help them develop orderly and organized thinking skills. In addition, Sowell-Scott suggests that parents listen actively to their child’s opinions and suggestions and attempt to answer questions by posing another question. Doing so encourages inquisitiveness, and helps the child become confident in solving the their problem without assistance.
Cultivating Entrepreneurial Abilities
For young entrepreneurs to be successful, they must have strong analytical skills and curious spirits. Development Center in Pennsylvania, recommends that parents frequently ask their children for opinions and help in making adult decisions as a way to help them develop orderly and organized thinking skills. In addition, Sowell-Scott suggests that parents listen actively to their child’s opinions and suggestions and attempt to answer questions by posing another question. Doing so encourages inquisitiveness, and helps the child become confident in solving the their problem without assistance.
Teaching children the value of a dollar is another way to help foster their entrepreneurial abilities. One way to do this is to ask the child to work for his or her allowance, instead of merely giving spending cash. Emmanuel Modu, Founder of the Center for Teen Entrepreneurs, believes that when kids must work to earn an allowance, they start to believe that they can control their destiny and affect the direction of their lives – this, in turn, helps to foster an entrepreneurial spirit (as cited in Gutner, 1994). Terry Savage(2003) adds that parents can teach children the value of a dollar by treating their own money with respect (i.e. considering the price of a purchase instead of just “charging it”), and by helping their children to understand the connections between work, paychecks, and taxes. As well, Savage believes it is important to let children make decisions about money from an early age. Opening savings accounts in children’s names and letting them determine how much to spend and how much to save can help them learn to plan for the future and build confidence in their own decisions.
Supporting the Young Entrepreneur
Cultivating entrepreneurial abilities in children, while important, is only half the battle. Parents must also work hard to support and facilitate entrepreneurial aspirations and endeavors, especially since most public school systems do not encourage entrepreneurship in the early grades. Lloyd Gite and Dawn Baskerville (1990) believe that an important rule for parents in supporting entrepreneurship is to encourage, but not push the child; parents should provide ideas and opportunities for making money, but never force the child to take on the responsibility of a business before he or she is ready. Kendeyl Johansen (2003) adds that when a son or daughter is ready to start a business, parents should sit down with the child and discuss his or her likes and dislikes. Young entrepreneurs have a much greater chance of being successful when they enjoy the work and find it interesting (Cronan, 2003).
When a child has decided what kind of business to pursue, parents should be sure to work closely with him or her to write a business plan.
Supporting the Young Entrepreneur
Cultivating entrepreneurial abilities in children, while important, is only half the battle. Parents must also work hard to support and facilitate entrepreneurial aspirations and endeavors, especially since most public school systems do not encourage entrepreneurship in the early grades. Lloyd Gite and Dawn Baskerville (1990) believe that an important rule for parents in supporting entrepreneurship is to encourage, but not push the child; parents should provide ideas and opportunities for making money, but never force the child to take on the responsibility of a business before he or she is ready. Kendeyl Johansen (2003) adds that when a son or daughter is ready to start a business, parents should sit down with the child and discuss his or her likes and dislikes. Young entrepreneurs have a much greater chance of being successful when they enjoy the work and find it interesting (Cronan, 2003).
When a child has decided what kind of business to pursue, parents should be sure to work closely with him or her to write a business plan.
The plan should detail
- the product or service offered
- how much it will cost
- who will buy it and for how much
- what the expected profit will be (Gite & Baskerville, 1990).
Finally, it is important to help children work out the details of their business ideas, but allow the major decisions to be their own. To be successful entrepreneurs, children must feel that they can be creative in their choices, but know that they will also have to take responsibility for their actions (Branch, 1997). The most important thing parents can do to support a young entrepreneur is to allow them to make their own decisions, and help them to learn from their failures as well as their successes (Johansen, 2003).
Stumbling Blocks to SuccessAs many entrepreneurs know, even the most successful business people have failed at one venture or another (Johansen, 2003). It is likely that young entrepreneurs will also run into a few stumbling blocks.
After all, as Janet Bodnar has said, “kids will be kids, even if they are entrepreneurs” (2001, p. 1). The following stumbling blocks, Bodnar says, can sink a kid’s business:
(1) Underestimating the cost. Children can avoid running out of cash by starting a business where their own effort is the biggest investment.
(2). Underestimating the time commitment. Parents can help children avoid this by asking the young entrepreneurs to design and stick to a work schedule.
(3) Overestimating their capabilities. Parents can help their child to realistically decide how much work a child can handle alone. (4) Having a bad attitude.
When kids show up late, act or speak crudely or seem unprofessional, they can alienate potential customers.
(5) Lacking confidence. Children have a much better chance of succeeding when Mom and Dad are encouraging and supportive. Although not every business venture will thrive, anticipating these stumbling blocks will help the young entrepreneur be as successful as he or she can be.
Stumbling Blocks to SuccessAs many entrepreneurs know, even the most successful business people have failed at one venture or another (Johansen, 2003). It is likely that young entrepreneurs will also run into a few stumbling blocks.
After all, as Janet Bodnar has said, “kids will be kids, even if they are entrepreneurs” (2001, p. 1). The following stumbling blocks, Bodnar says, can sink a kid’s business:
(1) Underestimating the cost. Children can avoid running out of cash by starting a business where their own effort is the biggest investment.
(2). Underestimating the time commitment. Parents can help children avoid this by asking the young entrepreneurs to design and stick to a work schedule.
(3) Overestimating their capabilities. Parents can help their child to realistically decide how much work a child can handle alone. (4) Having a bad attitude.
When kids show up late, act or speak crudely or seem unprofessional, they can alienate potential customers.
(5) Lacking confidence. Children have a much better chance of succeeding when Mom and Dad are encouraging and supportive. Although not every business venture will thrive, anticipating these stumbling blocks will help the young entrepreneur be as successful as he or she can be.
Programs and Resources for Young Entrepreneurs
As Eleanor Branch (1997) writes, a good way to support entrepreneurial children is to involve them in programs offered through community-based or professional organizations that support entrepreneurship.
Model programs include:
• Junior Achievement (http://www.ja.org/), an organization which teaches entrepreneurship through a national economic education program targeting students as young as eleven years old (Gutner, 1994).
• Future Business Leaders of America (http://www.fbla-pbl.org/), an organization that works with public schools to help young people acquire leadership and business skills (Gite & Baskerville, 1990).
• B.E. Unlimited’s Kidpreneurs Konference (http://www.blackenterprise.com), a three-day program that teaches the fundamentals of entrepreneurship to children ages four to seventeen (Branch, 1997).
• Lemonade Kids, Inc., a marketing research firm that provides kids with tips and tools for starting their own business through an association called Busines$ Kids (Gite & Baskerville, 1990).
• MADE-IT: Mother and Daughter Entrepreneurs in Teams (http://www.kauffman.org/pages/27.cfm), a program for seventh-grade girls and their mothers that is designed to provide each mother/daughter team with entrepreneurship knowledge and skills to initiate a business venture (Ewing Marion Kauffman Foundation, 2002).
ConclusionThere are many benefits of encouraging and supporting a child in entrepreneurial pursuits. If the young entrepreneur is successful, there could be large monetary rewards. Yet even if the youngster doesn’t turn out to be a multi-millionaire, there are many more benefits to raising an entrepreneurial child. Young entrepreneurs learn
As Eleanor Branch (1997) writes, a good way to support entrepreneurial children is to involve them in programs offered through community-based or professional organizations that support entrepreneurship.
Model programs include:
• Junior Achievement (http://www.ja.org/), an organization which teaches entrepreneurship through a national economic education program targeting students as young as eleven years old (Gutner, 1994).
• Future Business Leaders of America (http://www.fbla-pbl.org/), an organization that works with public schools to help young people acquire leadership and business skills (Gite & Baskerville, 1990).
• B.E. Unlimited’s Kidpreneurs Konference (http://www.blackenterprise.com), a three-day program that teaches the fundamentals of entrepreneurship to children ages four to seventeen (Branch, 1997).
• Lemonade Kids, Inc., a marketing research firm that provides kids with tips and tools for starting their own business through an association called Busines$ Kids (Gite & Baskerville, 1990).
• MADE-IT: Mother and Daughter Entrepreneurs in Teams (http://www.kauffman.org/pages/27.cfm), a program for seventh-grade girls and their mothers that is designed to provide each mother/daughter team with entrepreneurship knowledge and skills to initiate a business venture (Ewing Marion Kauffman Foundation, 2002).
ConclusionThere are many benefits of encouraging and supporting a child in entrepreneurial pursuits. If the young entrepreneur is successful, there could be large monetary rewards. Yet even if the youngster doesn’t turn out to be a multi-millionaire, there are many more benefits to raising an entrepreneurial child. Young entrepreneurs learn
- money-management skills
- better understand economic realities
- develop a strong work ethic
- learn to manage time, people, and resources
- understand the value of a dollar (Gite & Baskerville, 1990).
- take chances
- to be creative
- to take responsibility for their own actions (Branch, 1997)
AUTHOR: Raising a Young Entrepreneur By Carrie B. Kisker
SOURCE: Kid's Ahoy a proactive community of Filipino parents, teachers, kids and kid-lovers worldwide---online and offline.
