Risks &
Rewards
Of Entrepreneurship
(Permission is granted in advance
to print copies of this product
for use in the classroom)
By
M. Catherine Ashmore
Lisa Mazzei Fischer
Gwendolyn Rippey
Terry W Southwick
Laurel A Zlotnick
Frieda Douthitt
The Consortium for Entrepreneurship Education
Columbus, OH
Note: Risks & Rewards was formerly published by EMC Publishing in St. Paul MN
and is no longer available from that source.
Introduction
What does it take to become an entrepreneur? If you are like most people, you probably think of the skills
necessary to run a business, such as record-keeping, employee management, and inventory control.
These skills are important, but they are not the only factors necessary. Personal characteristics also
influence one's success as a small business owner.
Risks & Rewards of Entrepreneurship has been developed to help students examine their personal
characteristics that influence their suitability for small business ownership. By completing this module,
students will be able to determine their self-employment potential and develop a personal plan of action
for entrepreneurship. This module is attitude building rather than knowledge building. Although not all
students wish to pursue small business ownership at this time, they may find it beneficial in making
career plans.
Background
This text-workbook and teacher's resource guide evolved from the need for instructional materials to
introduce students to the possibility of small business ownership. They are also useful teaching tools for
teachers who wish to introduce entrepreneurship but are unfamiliar with the subject matter.
Why should you teach entrepreneurship? According to the 1980 U.S. census, 84 percent of the business in
the U.S. employed 19 people or less. Those businesses supply the lion's share of new jobs in our
economy and are the first employers of most young people.
Vocational education has traditionally prepared students for jobs. Yet, it has not realized its potential to
prepare people for self-employment and business ownership, despite some of the strong programs that
have been offered in vocational agriculture, marketing education, and other areas. Realistically, we must
recognize that entrepreneurship will be the end goal for some but not all students.
Research also shows that most entrepreneurial ventures of substantial scope are undertaken after age 25.
But, if we are to be completely fair with our students, then we must examine the value, feasibility, and
nature of entrepreneurship as a possible occupational choice for them. Entrepreneurship instruction
could stimulate students to consider long-term career alternatives.
Fostering within our students such successful traits as initiative, optimism, resourcefulness, risk taking,
foresight, leadership skills, and versatility will enhance their opportunities for success when they seek the
long-term goal of owning their own business. It's not just the students with predetermined, small business
ownership goals, but all students who will benefit from such instruction. The employee who understands
how management decisions affect him or her and has respect for the successful entrepreneur is much
more likely to be an asset to that company.
Lifelong Learning
Entrepreneurship education is a lifelong learning process that could greatly benefit many of today's
struggling entrepreneurs. The experiences, skills, and attitudes necessary for successful small business
development are not learned at any one place or time. In fact, the earlier young people can begin to learn
the opportunities and skills associated with entrepreneurship, the more likely they are to be successful as
entrepreneurs.
This lifelong learning process can be described in five stages, with different student and program
outcomes at each stage. (See figure 1.) Stage 1 is for activities that encourage entrepreneurship as a career anytime in the educational system. It suggests that being your own boss may be a motivation for learning basic skills and the benefits of the free enterprise system. Stage 2 is designed to teach an understanding of the management skills one must develop to run a business. This stage is considered important for all high school vocational students and could be described as basic business skills needed to increase productivity. Stage 3 represents the next level of development generally found in advanced high school vocational programs or in two-year colleges. It provides more in-depth understanding of the competencies needed to become a successful entrepreneur, and it encourages the student to dream a bit—to plan a business that might be started using acquired vocational skills.
The first three stages of the lifelong learning model represent a challenge for the educational system.
Education for future entrepreneurs has been relatively nonexistent in our public educational system in the
past. Emphasis on business courses within this system has been largely concerned with preparing
individuals to work for corporate America. Until now, business management expertise has been
considered primarily a college-level endeavor. Entrepreneurship education can be a vehicle to explore all
the opportunities in our society for careers, including the world of entrepreneurs.
The last two stages of the lifelong learning model address the continuing need to help entrepreneurs get
businesses started and keep them running successfully. This is beyond the role of our traditional public
educational systems for in-school youth. However, there will continue to be a great need for such
assistance from adult educators. It has been estimated that one-half of the new businesses in the United
States fail in the first two to five years (U.S. Small Business Administration, 1984). With the absence of
entrepreneurial skills education in the public schools, these last two stages of the model have carried
most of the responsibility for support systems for our entrepreneurial society in the past. By increasing
entrepreneurship education, it seems possible that small business people may have fewer failures in the
future.
ENTREPRENEURSHIP LIFELONG LEARNING MODEL
LIFELONG ENTREPRENEURSHIP EDUCATION MODEL
Developed by The Consortium for Entrepreneurship Education, Columbus, OH
Benefits to Students
Entrepreneurship means a "new look" for vocational education. The following benefits should dispel any doubts concerning the value of entrepreneurship education to students and society.
• Parents, particularly those in business, may see vocational education as a stronger option for their
children.
• Programs will have a new motivating element for risk-taking, turned-off youth.
• Employers are enthusiastic about the greater understanding their employees will have concerning
small business problems.
• Students will have an alternative to unemployment if jobs in their field are scarce.
• Bright, young people can demonstrate their creativity in a guided educational setting before
competing in the real world.
• School administrators will find reason to upgrade their expectations of vocational students.
• Educators will see added benefits for students in vocational programs and encourage all students
to get involved.
• Students can see alternative benefits for the competencies they are learning in vocational
education.
The Design of
The Risks & Rewards of Entrepreneurship
Organizational Format
Risks & Rewards of Entrepreneurship includes a text-workbook and a teacher's resource guide. The text-workbook is made up of the following four sections:
• Section 1: Can I Be an Entrepreneur?
• Section 2: What Experiences Have I Had?
• Section 3: What Type of Business Could I Start?
• Section 4: How Can I Prepare to Be My Own Boss?
Each section in the text-workbook contains the following components:
• Introduction. This is a short description of the subject matter to be covered in the section entitled…What Is This Section About? .
• Objectives. Presented at the beginning of each section, the objectives inform the students of what they will gain by completing the section. .
• Content. Drawn from research-based materials, the content imparts subject-matter information.
• Profiles. These activities, sequenced throughout the module enable the students to collect
pesonal information that can be used as the basis for a personal portfolio upon the completion
of the module. This portfolio could be used in job interviews, business (investor) interviews,
competitive events, and continuing self-development.
• Additional Activities. At the end of each section are additional student activities. You may wish to assist the students in selecting the activities that best meet their individual needs and your time
constraints.
In addition, a glossary is provided at the end of the student module that presents simple definitions of the
terms used.
Instructional Format
The teacher's resource guide is designed to complement the text-workbook. Teaching outlines for each of the four sections are found in this guide. Each of the four sections begins with an introduction that includes the following items:
• Title. Title and focus of the section.
• Purpose. Overall goal to be achieved in this section.
• Objectives. Individual achievements leading to accomplishment of section goal.
• Materials. A listing of profiles and activities in the text-workbook, handouts, transparencies, and
success stories in the text-workbook and teacher's resource guide that are needed for each section.
The introduction is followed by a well-defined course of action, depicted by the "T" format.
Objectives Teaching Suggestions
In the left-hand column (objectives) provides a summary of the materials to be covered in each
section. This summary follows the outline of the text-workbook, but does not duplicate the content.
Questions about what to teach are presented here. The right-hand column (teaching suggestions)
recommends techniques and methods to be used.
Instructional Methodology
The text-workbook is designed to be used by students on an individual basis. The teacher's resource
guide is designed to complement the text-workbook. It is not designed to be used by itself. If you wish to
teach from the teacher's resource guide, please be certain to present the content found in the text-
workbook. The content in the text-workbook is not duplicated in the teacher's resource guide.
Finally, this training package is designed to give you and your students flexibility in adapting it to their
own particular setting, need, and time frame. For example:
• Students could use the module to explore the idea of pursuing an entrepreneurial career. The material is easy to read and the instructions for the activities are easy to follow, so your help is hot really necessary.
• You could use the module to introduce entrepreneurship into a regular class or as part of a career
exploration unit.
• Students could read through the module and work through the activities together. The additional
activities in the student material and the handouts from the teacher's resource guide
could be used to expand the time frame, as well as to match the students' interest in exploring
entrepreneurship further.
Instructional Aids
The instructional aids to be used in each section are included in this guide. Handouts, and success stories (case studies) are labeled and placed in respective sections. Handouts are labeled "HO" followed by the unit handout number (HO 2.3 is interpreted as handout number 3 in section 2). The profiles in the text-workbook are numbered consecutively. The posters can be used both as motivational and instructional materials. Invite the students to take the time to think about the content they offer.
Resource Suggestions
Effective entrepreneurship education requires working with a wide variety of resources and contacts in
both the school and community. Some possible resources follow, along with a brief description of the
information each may contribute:
• Guidance counselors are a link to the students. Their active support of entrepreneurship education will build student awareness and interest.
• Vocational teachers have a rich supply of technical expertise. A business teacher might present a session on record-keeping, for example. These teachers also may have other contacts/resources
that they would be willing to share.
• Administrators usually have a broad network of resources. They may have contacts with model
entrepreneurship programs or other special programs. Also, their approval is usually essential in
planning innovative activities such as field trips, workshops, and guest speakers.
• Advisory committees are a good source of contacts. They can offer technical expertise, serve as
guest speakers, or recommend others to serve in these capacities.
• School librarians can enrich entrepreneurship education by keeping abreast of magazine articles, reports, market surveys, and books that give up-to-date information on small business.
• Chambers of commerce can promote community awareness and support for entrepreneurship
education in schools. Guest speakers also may be available from chambers. In fact, many
chambers have built active partnerships with the schools.
• Career education staff may be willing to help infuse entrepreneurship as a viable career option.
• U.S. Small Business Administration (SBA) provides a wealth of information on local resources. They have information on SCORE (Service Core of Retired Executives), ACE (Active Core of Executives), as well as access to state Small Business Development Center resources, publications on many aspects of small business ownership, and workshops/seminars on entrepreneurship education.
• Trade associations offer technical expertise in specific areas. They may supply guest speakers and current research to ensure state-of-the-art approaches in their industries.
• Local entrepreneurs are usually willing to share their experiences and provide role models for
students. Those who came from vocational programs usually have school-based experiences that
helped them get into business.
• Two-year colleges have a variety of programs to prepare future businesspeople. Instructors of high school and two-year college programs in the community might work together to plan advanced placement or to articulate programs.
• Adult vocational education staff in many communities work with small business people to improve their management and problem-solving skills. These staff persons can be a valuable resource to high school instructors as a link to local entrepreneurs and as experts on small business in the community.
Curriculum Planning Ideas
The following ideas may be helpful in planning the infusion of entrepreneurship education into a
vocational curriculum.
Teacher Lectures - Any resource or combination of resources may provide content for teacher lectures. This method should be combined with others that provide students with entrepreneurship experiences. Students will learn most by applying the content of lectures to real experiences in small business planning.
Youth Group Activities - New competitive events could be designed to be a part of the organization's regular activities, several vocational student organizations already have state and national competitive activities.
Fuud-raising Class Project - More attention could be focused on the business operation components of the fund-raising project such as a market survey of what to sell, projected sales, a business plan, and the like. Students should plan and be responsible for all decisions so that they are the entrepreneurs, not just the workers.
Prepare a Business Plan - Business failures are most often due to poor planning. A business plan gives the business owner a sound operational structure. PACE and Beyond a Dream (see "Available Curriculum Materials" in this guide) both give detailed instruction in planning a business.
Co-op/Internship Experiences - Students' on-the-job training could be with an entrepreneur in their service area. A program could be developed for teachers and/or students in which they would shadow an entrepreneur for a set period of time, such as a week.
Entrepreneur Case Studies - Reports of how leading entrepreneurs in the state got their start could be used in addition to the case studies on former vocational students supplied here.
School Enterprises - Entrepreneurial competencies could be accomplished through the operation of a school store or other school-related enterprises. An all-day fair could be an entrepreneurial event drawing on the creativity of vocational classes to sell their products or services to the community.
Guest Speakers/Role Models - Successful local entrepreneurs, especially former vocational students, could be brought in to relate their experiences. Videotaping their presentations for future use would further their educational potential.
Small Business Courses and Counseling - The SBA offers courses on various topics concerning entrepreneurship in many locations throughout the state. Students and/or teachers could take advantage of this training. Contact your nearest SBA office to receive a calendar of courses.
Computer Applications - Since entrepreneurs in virtually every occupational area use computers to perform functions specific to their business, computer literacy is essential to all vocational students. Computer assisted instruction could be used to educate students on entrepreneurship. School store or fund-raising records could be kept on the computer. Marketing strategies could be developed using the computer as a way to reach customers outside of the school or community..
Simulations - A game, simulation activity, or computer software project that is based on entrepreneurship principles or techniques could be developed by the class or purchased from software developers and publishers.
Seminars/Conferences/Workshops - Specialized topics related to entrepreneurship could be addressed in seminars, conferences, or workshops. Examples of some possibilities include— ,
- a special program for minorities,
- a special program on international small business,
- opportunities for new businesses,
- a conference featuring leading local or state entrepreneurs, and
- the entrepreneurship fair or career day.
School-Based Enterprises - A real business could be started in a school by several students, an entire class, or many classes. Such a business must be needed by the community and often has potential for continuation by the students after they graduate. This is particularly useful where jobs are scarce such as in rural communities.