Are You Raising an Entrepreneur?

Does your child dream of being a firefighter, teacher, doctor, or newscaster, or does she instead make plans for the store she will own or the company she will run? Children love to dream big, and they often change those dreams as quickly as they zip through the hallways of our homes. I’ve recently been curious about a trend in our home that has developed throughout the years – when my kids make wild plans for their futures, they almost always put themselves in the driver’s seat of entrepreneurialism. As a child I did my fair share of dreaming, but I don’t recall the emphasis on being my own boss that my children seem to have found. My husband didn’t have any set plans for running his own company (he just knew what he didn’t want to do). So how do we raise children to be entrepreneurs?

Watching a news clip recently reminded me about the importance of encouraging our children to become entrepreneurs. Carl Schramm, co-president of the Kaufman Foundation, reports that it is encouraging news that there is “huge enthusiasm among kids to start businesses.” This enthusiasm, while not enough to immediately improve the economy, is vital for the future of developing businesses in this country. Suddenly I feel a little pressure to make sure that as a parent I don’t squash one iota of entrepreneurial spirit that my kids are displaying.

No pressure. Just the fate of the modern world balancing on our shoulders to help raise children who can successfully become entrepreneurs – be their own bosses and make their marks in the world, all while positively impacting the national and global economy. OK – there doesn’t need to be that much pressure, but parents do need to be that support system that will allow kids to become entrepreneurs.

Encourage the spirit. If you have a child who wants to sell lemonade, homemade stickers, old baseball cards, or even pet rocks, encourage him to try. Even if the thought of running your own business is foreign or unappealing to you, give room for your child to explore this option.

Don’t stop your child from failing. Failure is one of the best teachers in life. Eons ago during my own childhood my older sister (I think she was about 6) wanted to earn money. Her grand plan was to sell newspapers. Old newspapers from a rusty red wagon. And we were the second to last house on a dead-end country road, and weren’t allowed to leave the end of the driveway. But my parents let her load her wagon with every old newspaper she could find and pace the driveway. Of course no customers ever came, but she learned that not all plans work as dreamed, but it doesn’t mean you have to stop dreaming. If you don’t let your child fail, she won’t know how to improve her approach and plans next time.

Help find answers. You don’t have to be a small business owner to teach your child how to be an entrepreneur. Help them learn how to find answers to their questions. Start with the library, your local small business association, and Better Business Bureau. There are some great books geared toward kids, such as Kidbiz: Everything You Need to Know to Start Your Own Business.

Be a subtle guiding hand. When my daughter wanted to prepare and sell dog treats to raise money for a non-profit, I was concerned about the legal issues. I suggested she contact the FDA, who in turn steered her to the USDA. At first she was told she could do this as long as 100% of the proceeds went to the non-profit. It turns out this was a learning curve for her and her contact with the USDA however, as she was later contacted and told she could bake and sell nothing – not even at an old fashioned craft and bake sale. Apparently there are more strict guidelines on dog food than on some human foods! While she was extremely disappointed, she learned a valuable lesson about the intricacies of the law and the importance of covering your business basics.

Teach your child some lessons about finances. You don’t need to dictate how and where to spend the money, both for supplies and from profit, but you should start with some real world examples of expenses and income. If your child needs start-up money make sure that you only provide it in the form of a loan to be paid back upon first profits earned or through other specific means if the venture would fail. These are real plans with real consequences – real life teaching real money management lessons.

Who Becomes an Entrepreneur?

Perhaps it is because we homeschool our kids that they are used to independent processes, or they see me work-at-home part-time and are drawn to the flexibility and rewards of it. Maybe it is because they have seen their father run his own part-time business from home that they can’t imagine a career completely dictated by someone else.

While I never set out to directly teach my kids to have an entrepreneurial sense, it does appear that I have fallen precisely into the statistics. Reports indicate that the anatomy of entrepreneurs is very much mirrored in my home. The typical adult entrepreneur is married, has children, and a solid educational foundation, and does not necessarily come from a home where parents were entrepreneurs. Research also shows that parents do play a role in at least encouraging their kids to explore the possibilities of running their own companies.

Preparing our kids for their futures and their future possibilities as entrepreneurs is no easy task. I guess I had better prepare for more worm farms (yes – one son has done that) and online marketing. The future of the economy depends on it. Gulp.

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