Let's get one thing straight.
A kid entrepreneur is made, not born.
Yes, some kids are naturally born with the qualities that set them up for business success. Open-mindedness, competitive nature, unrelenting drive are all inborn traits of entrepreneurial kids.
But like all-natural talents, there's nothing a good amount of training and hard work can't teach. That's why you're reading this now, right? Child entrepreneurship may be a natural passion, but you can help set your kids up the same path with the right kind of support.
And we're here to help you with that.
Here are 12 effective ways to teach children how to be entrepreneurial kids:
Teach them about money
Nurture their passion, skills, and talents
Expose them to various entrepreneurial outlets
Coach them in the business
Set SMART goals
Train them in planning and decision-making
Build a visionary
Upskill their problem-solving
Inspire a resilient mind
Motivation keeps the fire raging
Help them with their first enterprise
We'll discuss each of them in detail so stay tuned to the end!
Teaching Entrepreneurship to Kids: 12 Proven Methods
Follow the guide below if you're looking for ways to ignite the entrepreneurial spirit within your kid! You might be surprised how invested they can get when they experience how awesome it is to become a kid entrepreneur!
1. Teach Them About Money
Money is the blood flowing through the veins of an enterprise. The grim reality is that every business is bound to fail without proper circulation of resources. That is why financial literacy is essential know-how for young entrepreneurs to thrive in the industry.
Most kids have no idea of what money is and what it's for. Explain to them how money works by relating examples to the real world, an actual monetary exchange display would be ideal.
For example, let your child observe when you pay the rent to your landlord. Tell them what the money is for, the benefits of paying rent, and the consequences if they don't. This can help them understand the value of saving and investing money in things that matter.
Teaching entrepreneurship to kids begins with a solid foundation in financial literacy.
2. Instill Responsibility
Another major lesson on how to be a kid entrepreneur is responsibility. Children must recognize that they're the key players for their success.
There are many avenues where young entrepreneurs can be responsible:
Washing the dishes
Waking up to their alarm
Feeding the dog and refilling their water bowls
Finishing their homework before playtime
What they need to learn here is that responsibility reaps rewards. If they fulfill their commitments diligently, something good awaits them. Do your part to encourage their good behavior through positive reinforcement.
Concerning the previous point, make your kid entrepreneur understand that only those who fulfill their duty receive the reward. Much like how a kid entrepreneur, if they work diligently on growing their business, can make a good profit.
3. Nurture Their Passion, Skills, and Talents
Every child has an interest, and usually, these interests inspire business opportunities. Most people delve into a business that highlights their passion. Therefore, cultivate your kid entrepreneur's delight by encouraging them to invest more time in it.
If they love to paint, then let them practice it further. Do they love to tinker with stuff? then assist them with your tools. Interests are great sources of business ideas.
A kid entrepreneur can make the most out of the business when they love what they do. How to raise entrepreneurial kids? Nurture their passion!
4. Expose Them to Various Entrepreneurial Outlets
Learning comes from all angles, not only their passion. We can help build their knack for business by exposing them to a wide range of options. From toys to games, to TV shows, the possibilities are endless. Here are some examples!
Moonpreneur Board Game is an awesome introductory game to teach kids about business strategies and financial concepts. A great way to slowly reel kids into the world of commerce! There are a ton of fun board games for budding entrepreneurs out there!
Like board games, there is also a vast collection of educational TV shows that teach about business. The show Ask the Storybots sometimes tap into this aspect but the biggest childhood influence on financial literacy is undoubtedly the Biz Kid$!
As for toys, they can also be great avenues to teach business, or at least, expand kids' horizons on what ventures to pursue. Our very own STEMscope portable microscope is a product of a passion for science turned business, more on this later!
Let's say, your kid entrepreneur is fond of tinkering with objects then why not give them an Arduino UNO where they can tinker all they want and build cool prototypes! Sign them up for a free Arduino UNO trial class and see where it takes them.
5. Coach Them on the Basics of Business
Running a business is not easy. If you want your kid entrepreneur to keep their motivation in the biz, we need to help make the venture as fun as possible.
How? Take it one step at a time.
Teaching entrepreneurship to kids is not exactly a light matter. Given kids' short attention span, they are bound to lose interest if they find it complicated and tedious. That's why you must make the process interesting.
Note: At this point, a kid entrepreneur should have a clear understanding of money and a grasp of their passion/interests.
Introduce them to the concept of a business and how it can help them create income to buy the things that they want. Slowly reel them into the idea until they return the same energy.
You may ask them to write the sorts of businesses they would like and then choose together which is feasible from the list. Help them come up with a business name and a logo. Moreover, ask them what they think are the things they need to open the business. Through these small steps, you are slowly transforming your children into young entrepreneurs.
Once they got those set, it's time to teach kids about deeper concepts like revenues, expenses, and profits. Fundamentals that a kid entrepreneur must know.
6. Goal-Setting 101: SMART Goals
Goal Setting is another important skill that a kid entrepreneur must be familiar with as many business giants like Elon Musk and Warren Buffet practice the same. Having goals means having a target and having a target means that there is a direction.
Teach your kid entrepreneurs the SMART way of setting goals, which stands for:
S - Specific
M - Measurable
A - Achievable
R - Realistic
T - Time-bound
When business-minded children adhere to SMART goals, the likelihood of success is higher because SMART goals are actionable and feasible!
For example, "capital".
Every business needs this and one cannot take off without having this at their disposal. Encourage your kid entrepreneur to start setting a goal for their capital needs. How much capital do they need to get started? How much do they need to earn to take the business off its feet?
There are a ton of milestones awaiting a kid entrepreneur's path before they finally get to the finish line. Until then, after they achieved the goal at hand, move on to the next one. Help them set out their goals based on what they want to achieve!
7. Train Them in Planning and Decision-making
"A goal without a plan is only a dream." -Brian Tracy
Goals will remain to be goals until you do something about it. Once your kid entrepreneur's trajectory is loud and clear, assist them in coming up with practical ways to reach them. Child entrepreneurship can only work to the level of guidance you give them.
Going back to our example on "capital":
Say, your young entrepreneur has a business in mind. They can't start with it unless they have the capital to take them off. This can be their first goal in the long trail of business establishment. It also opens up an opportunity to practice the few lessons they have learned so far like responsibility and money management.
Help your kid entrepreneur by assisting with their capital needs. You may set up a bargain with them, like every time they do their chores or clean their room, they receive a payment. Right until they have the capital to get started.
This is only one option from a multitude of choices. Aid your kid entrepreneur to plan and make wise decisions on these matters. Plan out every course of action in fulfilling the goal at hand.
8. Build a Visionary
Visionary might sound like a fancy word for an effective planner. But there is more to being a visionary than meets the eye!
As Jonathan Swift once said,
"Vision is the art of seeing what is invisible to others."
Planning and goal-setting are good, but plans can also fail on some occasions. What should they do when plans come up short? Teach your kid entrepreneur that victory comes from finding opportunities in problems.
Failed plans and missed goals are hurdles, but not hurdles big enough to hinder visionary entrepreneurial kids.
9. Upskill Their Problem-solving
Do you know what's worse than having problems?
Not knowing how to solve them.
Train your kid entrepreneur with essential problem-solving skills by encouraging a critical thinking atmosphere. Let them speak out if they have solutions to offer to the table. Refrain from shaming any of their idea that may seem nonsense, rather, encourage a healthy discussion.
Facilitate the process, but let the kid entrepreneurs take the lead! This way, once they see hurdles presented to them, they may see opportunities and determine on their own how to work around the problem!
10. Inspire a Resilient Mindset
A reality check is not so bad that kid entrepreneurs shouldn't know about it.
Not every business succeeds, and that's okay!
Child entrepreneurship is not a game where kids always come out the victor. Some businesses might just not be what people are looking for. This is a fact of life that, hopefully not, kids might encounter. You must offer a safe haven where they can open up and express their concerns and troubles.
More importantly, have a supportive voice that tells them to power through adversaries and challenges. This can help build that resilient mindset within your kid entrepreneurs.
11. Motivation Keeps the Fire Raging
Aside from being the voice that encourages and supports them, there are other outlets for them to draw up the encouragement they need. Inspiration comes from all places, and there is nothing more motivating than to see fellow kids their age achieving business success!
We have a list of the best young entrepreneurs who are transforming the plane of entrepreneurship! Encourage them to read up their stories or you can watch documentaries and videos together about these people.
Sometimes business-minded children simply need the nudge from other kid entrepreneurs to get them going. You never know, inspiration can go miles!
12. Help Them With Their First Enterprise and Pay it Forward
Cultivating the right skills and mindset to your kid entrepreneur is important but this is half of the full story. Putting these skills into work is the culmination of all the things discussed above.
Support your kids as they go about their business. Kid entrepreneurs, by the end of the day, are still children. Do not put too much pressure on them and keep things fun! Our unyielding support will pull them through it until they can stand up on their own two feet.
Convince them to see profits as not only money for the kid entrepreneurs to enjoy, but also to benefit others. Support charities and notable causes together. A kid entrepreneur seeing that they make an impact beyond their own lives might be another encouragement for an unending business pursuit even as they grow older.
Maximize the Sources of Business Opportunities
Having a passion or a wide range of interests are effective ways to help a child understand the niche of their business. When you expose yourself to various media, your arsenal of business opportunities also expands!
As mentioned above, TheSTEMscope is a product of passion and love for science. Underneath every product is the inkling vision that there is no such thing as "age requirement" before kids can learn science.
Introducing a child to different avenues that can shape their interest may be the push they need to become a kid entrepreneur. Who knows? Maybe one peek at TheSTEMScope propels their lives to a career in science or awaken the entrepreneurial spirit within them.
Maximize the plausible sources of business ideas and opportunities!