Will your child be an entrepreneur? Can you help?     028

According to the dictionary an entrepreneur is simply a person who runs some type of business hoping to make a profit, but for most people the image is one of a highly talented person who develops the ability to use business opportunities to make a very large amount of money. Most people are quite positive about entrepreneurs, often with romantic notions about ‘rags-to-riches’ stories. There are many migrant success stories, for example. Indeed the entrepreneur is the new hero.

On this subject a great many books have been written, as well as articles both for the academic and popular audience. There are dozens of journals dealing with entrepreneurship. Many universities have specific entrepreneurship courses where students can study how to become an entrepreneur, so today the concept itself of concept of entrepreneurship has turned into a large educational business.

One fairly popular idea is that entrepreneurs develop their skills and abilities while fairly young and there are certainly many examples of this, including the legendary Warren Buffett who as a school student had a very successful paper round. An article by Jacqui Walker, In the genes (BRW, 16 Sep 2004, pp. 88-90), gives the example of a Year 12 student at Melbourne High School who brought cans of soft drink from the supermarket and sold the cans separately to the school students during lunchtime.

Sometimes parents who will have a family business can assist children in the development of entrepreneurial or business skills.  Actually within Australia there are a large number of people running businesses. Out of a total workforce of about 12 million people there are 2.3 million businesses of all sizes. Approximately half of these businesses are what are called micro-enterprises, with just one self-employed owner, and many of these businesses are conducted from home.

These days at school there is more actual teaching about the world of finance and business. Here in NSW senior high school students can study both Economics and Business Studies. In Victoria children study a similar subject called Business Management. The syllabus is fairly wide ranging with students learning about the ‘complexity, challenges and rewards that come from business management’.  For quite a number of years now students have been able to participate in an Australian Stock Exchange simulation game where over a period of months they invest imaginary money.

Children need the best chance to experience and do things that have elements of wonder and excitement. Sometimes these experiences are found outside of the school. A striking example recently occurred within the Darling River between Menindee and its junction with the Murray River. After a long period of no water finally the river spectacularly came to life, with a 1.5 metre wall of water advancing down the river. Fortunately the School-of-the-Air used some common sense and gave children in the area that day off so they could “watch the river arrive” (see article by Sue Neales, Spectacularly flows the Darling, Australian, 6 Aug 2016, p. 3).

Parents need to use common sense as well and give children experiences that allow them to learn about the world and how they relate to it. If for example the father is a truck driver, and is doing a trip down to Melbourne, and the child is old enough then pop him or her into the cab and get going. In general I think children who grow up on rural properties have a chance to learn many things, including interaction with different types of people. Life experience and the recognition of opportunities is so important.  A number of very famous entrepreneurs point out that it certainly isn’t necessary to attend the top business school to be strikingly successful, and Warren Buffett is one of them.

So then what does the literature say about entrepreneurship?

Four key aspects are constantly referred to. First, entrepreneurs are passionate and driven internally. They constantly dream about a new world for themselves and others, and are obsessed with growth and change.

Second, entrepreneurs are very good at recognising business opportunities, and being able to create and manage a business venture to take advantage of those opportunities.

Third, entrepreneurs still have doubts and high levels of uncertainty, but they are able to use their ability to work hard, are persistent over time, and overcome their fears. Entrepreneurs love their work because they find it exhilarating.

Fourth, entrepreneurs in general are able to adapt to working successfully with other people. This is especially important in today’s very complex business world as we know that one person cannot have all the information that is required. Much progress can be made through effective teambuilding.

The message for parents is to provide a suitable environment for their children. It is a fact that many successful entrepreneurs refer to childhood experiences. So if your children want to start a business activity perhaps you could lend them some money and provide some free transport and equipment. If there is a chance for your child to have a very special experience then take the opportunity, even if they have to stay home from school. Get them out and about, and doing real things. You never know what might happen.

A few years ago I was down at Rose Bay and in front of me a large car stopped next to the footpath that runs along the edge of the boat ramp. Out jumped two children and one mother. Chairs were unloaded, a table, equipment, glasses—and lots of lemonade. Oh, and a big sign that was fastened on the front of the table.  Yes, it was a real ‘lemonade stand’, but more importantly for those two children it was real education. Entrepreneurship is very much alive in this country—so give your children a chance to participate.

All content copyright—Mark Thackray—Australian Educational Services