ENTREPRENEURSHIP EVERYWHERE Introduction This Entrepreneurship Education Resource Guide is dedicated to presenting a picture of the entrepreneurship education programs in existence as we move into the twenty-first century. We thank the Appalachian Regional Commission for their vision of the Appalachia that might be in the future, through the support for entrepreneurship education throughout the Region. The greatest wealth is in the minds and hopes of the people of a region, and their creativity in recognizing "work that needs to be done." It is through entrepreneurship education and training at all levels of education that this vision of the future may be realized. What is Entrepreneurship? Most will agree that the spirit of entrepreneurship is the driving force in the growth of the American economy. NFIB research shows that there are about 4 million new businesses created in the United States each year, resulting in new jobs, and opportunities for new business activity for existing businesses. Many argue about the differences between small business and entrepreneurship. We believe this discussion needs to examine Edward de Bono’s ideas about creativity and apply it to the area of small business. If educators (and business owners) focus on "what is" or "what was" and teach their students or employees how to do a job as it has always been done, we agree that this is "small business management." They are managing the existing business with little orientation to creativity, without a focus on "what can be" or "what might be." However, an orientation to opportunity, in any industry, leads to entrepreneurial thinking. If students have experience in thinking about new ways to improve the operations of an existing or new business idea, they are thinking in the way de Bono advocates for progress in our society. Entrepreneurship, in small business or large, focuses on "what may be" or "what can be". They are practicing entrepreneurship by looking for what is needed, what is missing, what is changing, and what consumers will buy during the coming years. Entrepreneurship education is becoming a priority within all levels of education for a huge variety of reasons . . . based on the individual needs of leaders at each level of education. Educators in the College of Business see this area as a source of research, as well as an opportunity for business students to become successful business owners in the future. Educators in the College of Education see this area as a priority for teacher preparation for the nation’s schools. Community colleges are mostly concerned with adult education and entrepreneurship training needs in their local communities, as well as the full-time students on their campuses. However, they often separate those interested in business careers from those specializing in other industries where entrepreneurship abounds. High school career and technical education programs (often known as DECA, FFA, BPA FBLA, FHA, etc.) see entrepreneurship as a career opportunity for students who may never go to college . . . and the entrepreneurial experience as a way to upgrade a young person’s abilities to succeed as an employee as well as an entrepreneur. Social studies teachers often see entrepreneurship as a vehicle to explain economic theory to all American youth. Elementary and middle school teachers encourage the awareness of entrepreneurship as a career option for everyone, as well as a way to emphasize the importance of math, science, language arts, and social studies. Entrepreneurship becomes a vehicle to develop academic skills and understand the free enterprise system. For community youth programs it is a chance to provide experiences for young people who need to see new opportunities for their lives. For welfare-to-work agencies it is a vehicle to empower adults to be self-sufficient, independent, income-producing citizens. For adult educators entrepreneurship provides the broad-based approach to preparing potential entrepreneurs and upgrading those already in business. But for everyone . . . it is entrepreneurship education. Entrepreneurship Everywhere Entrepreneurship education means many different things to educators . . . from primary schools to the university, from vocational education to an MBA. At each level of education, it is reasonable to expect different outcomes as students mature and build on previous knowledge. But the overall purpose remains to develop expertise as an entrepreneur. The Consortium for Entrepreneurship Education supports the concept that entrepreneurship is a lifelong learning process that has at least five distinct stages of development. This lifelong learning model assumes that everyone in our educational system should have opportunities to learn at the beginning stages, but the later stages are targeted to those who choose to become entrepreneurs. Each of the following five stages may be taught with activities that are infused in other classes or as a separate course. Stage 1: BASICS. In primary grades, junior high, and high school, students should experience various facets of business ownership. At this first stage the focus is on understanding the basics of our economy, career opportunities that result, and the need to master basic skills to be successful in a free market economy. Motivation to learn and a sense of individual opportunity are the special outcomes at this stage of the lifelong learning model. Stage 2: COMPETENCY AWARENESS. The students will learn to speak the language of business, and see the problems from the small business owner’s point of view. This is particularly needed in vocational education. The emphasis is on beginning competencies that may be taught as an entire entrepreneurship class or included as part of other courses related to entrepreneurship. For example, cash flow problems could be used in a math class, and sales demonstrations could be part of a communications class. Stage 3: CREATIVE APPLICATIONS. There is so much to learn about starting a business, it is not surprising that so many businesses have trouble. We teach future doctors for many years, but we have expected a small business owner to learn everything by attending several Saturday seminars. At this stage, students can take time to explore business ideas and a variety of ways to plan the business. Although it is still only an educational experience, students must gain a greater depth and breadth of knowledge than either of the previous stages. This stage encourages students to create a unique business idea and carry the decision-making process through a complete business plan. This stage may take place in advanced high school vocational programs, two-year colleges where there are special courses and/or associate degree programs, and some colleges and universities. The outcome is for students to learn how it might be possible to become an entrepreneur. Stage 4: STARTUP. After adults have had time to gain job experience and/or further education, many are in need of special assistance in putting a business idea together. Community education programs are widely available in the vocational schools, community colleges, 4-year colleges, and universities to provide startup help. The U.S. Small Business Administration sponsors many of these training programs. Stage 5: GROWTH. Often business owners do not seek help until it is almost too late. A series of continuing seminars or support groups can help the entrepreneur recognize potential problems and deal with them in time. Many community colleges and continuing education programs at universities or colleges offer such seminars and workshops for their business community. They recognize that the best economic development plan is to help the community’s existing businesses grow and prosper. Educators at each of these stages of entrepreneurship should focus on their own special outcomes, and reach out for partnerships with educators at other levels of this lifelong learning process. There is room for entrepreneurship in some way everywhere in our educational system. Go to Lifelong Entrepreneurship Education Model Demand For Youth Entrepreneurship Education A recent Gallup Poll shows that 69 percent of high school students want to start a small business, but 84 percent of those surveyed report that they have no preparation to do so. The study was commissioned by the Kauffman Foundation in Kansas City, Missouri. High school students, the general public, small business owners, and managers were questioned about their opinions and knowledge about small business. High school students want to start a business of their own, be their own boss, and actually know how to start a business. A study (commissioned by the U.S. Department of Commerce in 1993) on the attitudes of minority youth and young adults toward business ownership also reports youths' strong interest in starting a business is mainly attributable to the freedom associated with being one's own boss. When asked, young people have consistently expressed an interest in becoming entrepreneurs and learning more about operating a business. They will also tell you they do not have the know-how to pursue this option. Eighty-six percent rated themselves very poor to fair on their knowledge of entrepreneurship and business. Students attributed their lack of knowledge on the subject to not having access to opportunities for learning how business works. About 85 percent indicated it was important or very important to receive entrepreneurship education in schools. Marilyn Kourilsky, former vice president of the Center for Entrepreneurial Leadership, states, "One of the only ways this generation is going to achieve a lifestyle that is better than their parents is through entrepreneurship." It is particularly important for students to be prepared to take different career paths in a world that is constantly changing. Those involved in teaching about entrepreneurship and the opportunities of small business in the American economy will want to use data to support your message. Here are some items that may be useful taken from the Gallup research on youth and entrepreneurship funded by the Kauffman Foundation. Companies with less than 20 employees created most of the jobs in the past decade, and now over half of the American workforce is employed by companies with less than 500 employees. (Dennis 1993). Seven out of ten (69 percent) of the high school students said they would like to start their own business, versus 50 percent of the general public. Of those who wanted to start a business, the major reasons were: To be my own boss (41 percent) To earn lots of money (21 percent) To use my skills and abilities (8 percent) To overcome a challenge (7 percent) Help community/provide jobs (7 percent) To build something for the family (5 percent) Other (5 percent) Don't know (4 percent) 85 percent of the high school students said the nation's schools should do more to teach about entrepreneurship and starting a business. Only 27 percent reported taking a course that taught about business or entrepreneurship. In a test of their entrepreneurial knowledge, respondents earned an overall correct score of 42 percent, with the lowest scores attributed to: typical way to raise capital (12 percent correct); purpose of profits (25 percent correct); and small business and job creation (25 percent correct). The highest scores were on questions related to description of an entrepreneur (73 percent correct); example of a franchise (62 percent correct); and supply and demand (51 percent correct). When students were asked what they had learned about how business works, 85 percent of the respondents said they had learned little or nothing in the schools. This can be compared to those who said they learned little or nothing about other subjects: 24 percent for United States history; 16 percent for science; 16 percent for English or American literature; and 7 percent for mathematics. Kourilsky states that "in the next century, we need to give students a variety of skills so they have real choices about their future. If you don't learn about entrepreneurship at home, where will you get the information and skills you need to make owning your own company a viable option? The results of this survey provide strong documentation of the need for and public support of entrepreneurship education for young people." Uses for the Entrepreneurship Resource Guide This resource guide is an examination of the programs we discovered in our work with entrepreneurship education in America. It is not complete in any sense, but an excellent beginning in the process of defining the many types of entrepreneurship education and training programs available at all levels of education. We made a special attempt to find programs already existing in the 13 Appalachian states, as well as those sample programs in all states. We have separated these two types of programs. There are a great number of organizations providing leadership throughout the nation in developing training for instructors and materials for the classroom. Many of these groups are included in the guide. We have also identified a number of curriculum products that might be used in the classroom for different purposes. They are in a separate section to facilitate their use. The reader will want to go to the Web pages of many of the sites to learn more about the programs available for developing entrepreneurship education opportunities for youth and adults. We wish you great good luck in creating or improving the entrepreneurship programs in your area and hope this resource guide will be valuable to you as you explore the options. Return to Table of Contents Return to Home Page