Helping the next generation of entrepreneurs get started today from setting up a lemonade stand on the corner to creating smartphone apps, kids are learning the ropes of running a business early. If you have a budding entrepreneur in the family, what can you do to encourage and equip them to take on the challenges of starting and running a business?
Kim Danger, personal finance expert and founder of MommySavers.com, says that even if you’re not a business-minded person, you can help your child or teen grow in this area.
“It’s never too early to start learning about financial matters, whether it’s managing their allowances or starting their own dog-sitting service,” Danger says. “In addition to talking with them about money matters and being a good role model when it comes to finances, there are some things you can do to help them get some real-world business experiences.”
• Take them seriously. If they have an idea for a product improvement or a service they can provide to neighbors, listen to the idea, and ask them questions to help them figure out how to make that idea a reality. Even if they don’t make a dime, they’ll get a boost in confidence and lessons in planning and critical thinking that will pay off later.
• Don’t do too much. It can be tempting to take over a project and “do it right,” but kids need to learn from mistakes, and to take responsibility for decisions and their consequences. They’ll miss out on those lessons if you do the legwork for them.
• Make sure it’s a labor of love. It’s one thing to come up with an idea to make some short-term pocket money. But starting a business takes a lot of time and effort, so it needs to be something that they can be passionate about.
Danger says that you can also connect your kids with tools and resources that encourage them to pursue entrepreneurship.
Play — A game such as Nintendo’s Fortune Street for the Wii console lets kids of all ages have fun while making a variety of business and economic decisions.
• As players make investments and face a dynamic stock market, they can experience the thrill of seeing rewards for their smart financial choices.
• By investing in property to influence real estate value, players can enjoy the fun of watching their in-game communities grow and thrive. Find out more at fortunestreet.nintendo.com.
Learn
• Junior Achievement (studentcenter.ja.org) has articles, games and videos geared to help young people start their own businesses.
• The U.S. Small Business Administration created Mind Your Own Biz (www.mindyourownbiz.org) to walk students through five easy steps to business ownership.
• Yes Kidz Can! (www.yeskidzcan.com) has articles and ideas about Social Entrepreneurism, as well as small grants for kids starting socially minded enterprises.
Experiment
• Many kid inventors got their ideas by playing with things like clay, art materials, building-block toys and even computer software. Give them materials to work (and play) with and let their imaginations go.
• The Small Business Administration has resources for students interested in starting their own businesses. Visit www.SBA.org, and go to the Services page for more information.
• There are a growing number of competitions geared for student inventors. Look into the Student Ideas for a Better America contest by the National Museum of Education for students K–12 (nmoe.org/gallery); The FIRST Robotics Competition for grades 9 to 12 (www.usfirst.org); or any of the Rube Goldberg Machine Contests (www.rubegoldberg.com).
