Updated Findings -- Youth and Entrepreneurship

According to recent research commissioned by the Ewing Marion Kauffman Foundation, children and youth have difficulty defining the word entrepreneur but are able to describe features of entrepreneurship and are familiar with the idea of "running your own business." As part of its efforts to better understand attitudes and aspirations about entrepreneurship among youth, the Foundation conducted two research initiatives. One was a series of focus groups with young people ages 11-14, which took place in the spring of 2002, and the other involved a survey of youth, ages 8-17, conducted through schools in the fall. Specific results of the survey and the focus groups follow.

Survey

A total of 3,076 students in 68 schools participated in the study. The respondents represented diverse ethnicities: 12% African American, 1.9% Asian, 5.6% Native American, 55.5% Caucasian, 11% Hispanic, 0.5% Pacific Islander, 12.8% other, and 0.7% multiple response. The respondents were 49.9% male and 50% female.

Responses to the survey, delineated by age, indicate the following:

• Career Aspirations - When presented with a list of potential vocational areas (arts, automobiles, business owner, construction work, engineer, government, law, medicine, professional athlete, retail trade, scientist, teacher, working with computers, "don't know", and "other") the largest percentage of respondents in each age group indicated "other" (23%-26%). Of the 8-12 year olds 15.61% indicated "professional athlete," while 16.96% of the 13-16 year olds chose medicine, as did 15.08% of the 17+ group.
• Interest in Starting a Business - Responding YES to the question, "Have you thought about starting your own business?" were 41.43% of 8-12 year olds; 44.41% of 13-16 year olds; and 46.67% of those 17 and older.
• Reasons for starting a business - Be your own boss was identified as the primary reason by those 17 and older, closely followed by make more money and follow a dream. Those three reasons also were selected by13-16 year olds, with make more money leading follow a dream and be your own boss. Children 8-12 selected make more money, followed by follow a dream, and help other people.
• Characteristics of business owners - Over 90% of respondents in all three age groups recognized that someone who owns a business works hard and knows the rules for their business. Among 8-12 year olds, 69.41% knew that someone who owns a business makes new jobs for others, as did 81.1% of 13-16 year olds, and 86.08% of those 17 and older. Large percentages of all three age groups knew that someone who owns a business deals with many things at the same time, is creative, and is willing to take risks to make money.

Responses, by gender, indicate few differences, with males and females similar in the percentages that had thoughts about starting their own businesses and in the various levels of certainty about starting their own businesses. They also had similar responses to the statements about people who own their own businesses and in their selection of definitions of the word entrepreneur. Gender differences were reflected in:

• Job Choice - A much higher percentage of females than males (23.34% vs. 5%) selected medicine as a job choice while a higher percentage of males than females (18.21% vs. 4.46%) selected athlete.
• Reasons for starting a business - A higher percentage of females than males (27.52% vs. 16.5%) indicated their main reason as following a dream while a higher percentage of males than females (35.47% vs. 20.75%) choosing make more money.

There were no noticeable differences among Hispanic students, African American students and Caucasian students in responses to many questions, including reasons for starting their own business, different types of businesses they might start, and selection of definitions of the word entrepreneur. Differences in responses, delineated by ethnicity, indicate:

• Fewer Hispanic (30.99%) and African American students (27.3%) than Caucasian students (45.02%) knew an adult friend who owned their own business.
• Slightly less than half of Hispanic students (42.86%) and Caucasian students (44.85%), but over half of African American students (52.84%) had thought of starting their own business.

Focus Groups

A total of 37 youth, ages 11-14, participated in focus groups in Chicago and Baltimore. Participants were interviewed in a home setting, in groups of three. Although the sample was small, it was diverse in terms of gender, SES, race/ethnicity, and urban/suburban setting. Specific results of the focus groups follow.

1. Characteristics of youth, ages 11-14:
   • Friends are very important to them
   • They have an expanding interest in the larger world
   • Have role models (celebrities, teachers, parents, friends) and believe they can be like them
   • Achievement-oriented; want recognition for accomplishments
   • Want to make their own decisions

2. Motivational Factors for this age group:
   • Power - Defined as independence and being in charge
   • Belonging - Having the means to help others
   • Success - Getting recognition; sense of pride
   • Play - Opportunity to invent/create

3. Entrepreneurship:
   • Couldn't define entrepreneur, but
     
   • Were able to describe some aspects of entrepreneurship
   • Were familiar with idea of people running their own businesses
   • Little exposure to any study of entrepreneurship
   • Some career exploration, primarily in terms of different jobs

4. Entrepreneurs are:
   • Seen as successful ("lots of money"; "wears nice suits")
   • Determined ("hard working"; "a go-getter")
   • Conscientious ("helps others"; "gives back to the community")
   • Inventive ("has cool ideas"; "can come up with things on their own")
   • Visionary ("Someone who builds for the future.")
   • Leaders ("has own style"; "People depend on them.")

Implications for Entrepreneurship Education Programs for Youth, 11-14:

• Accessible to all - easy to get to; not too time-consuming
• More likely to get/stay involved if friends are also involved
• Experience face-to-face and hands-on
• Recognition is key

This report was prepared for publication in EntrepreNews & Views in February, 2003.