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Youth entrepreneurship

(Published in BusinessWorld under the View from Taft Column, October 26, 2011)

My 16-year-old daughter, Frances, eagerly attended the Young Entrepreneurs Summit held at the World Trade Center last September. Thousands, including students, converged in this laudable undertaking aimed at encouraging entrepreneurship among the youth.

Interestingly, she along with friends also attended the Franchising Expo in SMX Convention Center during the same period. She was one of the few kids who attended that exhibition which was intended for prospective franchisees.

Studies have shown that entrepreneurial qualities, such as initiative, autonomy, risk taking, creative problem solving, and high internal motivation to succeed, emerge in children at a young age. I first discovered these qualities in my daughter when she was five years old, when she wanted to buy food in school and she didn’t have money. She got a Vick’s Vaporub ointment accidentally stashed inside her schoolbag by her yaya, and persuaded her classmates to pay one peso for every finger-full spread of Vick’s on the nostril. It may be a cliché, but necessity is the mother of invention. Children when faced with a problem start to develop thinking skills that help them solve the problem.

To further develop these qualities, experts argue that children in primary school should be made aware of entrepreneurship as a relevant occupational choice and a contributor to the bigger economy. Moreover, the learning environment should facilitate entrepreneurial cognitive development through experiential learning. Children’s entrepreneurial streak should be stimulated to interact with the environment and learn from mistakes and experiences.

That’s why at a tender age, I exposed my daughter to entrepreneurship in an experiential way. Starting at seven, she started selling things, from foodstuff to personal effects for kids. I encouraged her to sell by giving her extra money as capital but on condition that she would not sacrifice her schoolwork. At nine, I asked her to read Rich Dad, Poor Dad and How to Be a Teenage Entrepreneur, which she voraciously finished. When we went to the mall, I would point out to her the types of businesses there and why and why not a business may be successful. I also coached her marketing strategies to help her systematically compete and grow her experimental small business ventures.

As children grow older, children may lose their entrepreneurial spark, as argued by Gutner in his article, “Junior Entrepreneurs,” in Forbes Magazine. That’s why in order to preserve these entrepreneurial qualities among children to adulthood, they should be supported, encouraged, and facilitated. This can be achieved by actually letting the child become an entrepreneur himself or herself. Entrepreneurial readiness entails giving the child the opportunity to invest in a business venture and let it grow.

When my daughter turned 16, I loaned her five thousand pesos to invest in a multi-level marketing company, selling various products. She has experienced meeting new people, selling new products, and seeing her portfolio grow. After a few months, she was able to recoup her investment. This experience has started the preparations for her to venture into bigger business ventures, like becoming a franchisee of a water station or a food business which she learned from her meetings during the Franchising Expo. When she graduates college, I will be more confident that she can select, manage, and grow a more challenging entrepreneurial venture.

It’s heartwarming to see my daughter and her friends get interested in business at a young age. I hope that more and more kids today get interested into becoming entrepreneurs, because they fuel the growth of an economy. We need more entrepreneurs who can bring our country to the heights it has missed.

That’s why all sectors of society should have a stake in developing the entrepreneurial mind-set among students at an early age. Our school curriculum should include lessons in entrepreneurial awareness and readiness in primary and secondary levels. The private sector can help by promoting entrepreneurial ventures among students in universities through sponsorships, contests, and exhibitions.

Most importantly, we parents should be keenly ware of the development of our children. We should be helping during the development stages of our children, to promote behaviors of problem solving and initiative.
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Reynaldo C. Lugtu Jr. teaches management and marketing courses in the MBA Program of De La Salle University’s Ramon V. del Rosario College of Business. He may be e-mailed at rlugtu2002@yahoo.com, or visit his blog at http://rlugtu.blogspot.com.

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