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photo credits COVER: (bkgd) Photodisc Red/Getty
CONTENT-AREA VOCABULARY
Words related to economics and
business
(see glossary)
Images. 1: (c) C Squared Studios/Getty Images 3:
(c) Tom Stewart/CORBIS �: (b) AP Photo/Newport
News-Doily Press, Heather S Hughes 5: (tr) C Squared
Studios/Getty Images. 6: (t) TS Webster/Chocolate
Farm. 7: (br) Neal Stafford/Chocolate Factory 8:
(br) C Squared Studios/Getty Images II: (c) Michael
CONTENT STANDARDS
Social Studies
Newman/Photo Edit, Inc 13: (b) Think Computer
Corporation 15: (b) Dennis MacDonald/Aiamy
Images 16: (br) Photodisc/Getty Images 17: (b) Coral
•
History
and Megan Britton 19: (b) Photodisc Red/Getty
Images 20: (br) Marianne Coates 21: (b) Ariel
Skelley/CORBIS.
Word count: 2,662**
B
The McGraw-Hill Companies
B
B
Macmillan
McGraw-Hill
Published by Macmillan/McGraw-Hill, of McGraw-Hill Education, a division of
The McGraw-Hill Companies, Inc., Two Penn Plaza, New York, New York 10121.
Copyright© b y Macmillan/McGraw-HilL All rights reserved. No part of this publication
may be repro duced or distributed in any form or by any means, or stored in a database or
retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc.,
including, but not limited to, network storage or transmission, or broadcast for distance
learning.
Printed in the United States of America
7 8 910910 09
**The total word count is based on words in the running text and headings only.
Numerals and words in captions, labels, diagrams, charts, and sidebars are not included.
by Laura Shallop
Table of Contents
Introduction
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Chapter 1
A Hobby Grows into a Business .. . . . . . .. . . . . 4
Chapter 2
Kid Entrepreneurs Have Great Ideas
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Chapter 3
Kid Entrepreneurs Love Their Work
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Chapter 4
Kid Entrepreneurs Make a Difference
Conclusion
Glossary
Index
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24
Comprehension Check
Introduetion
It's never too early to start thinking about a
career. When you grow up, you'll need to look
for a job. Which one will you choose? Many
people make money by working for a business.
They are employees of that business. That means
they are earning a living by working for
a business owned by someone else.
Entrepreneurs, however, are both owners and
employees. An entrepreneur is someone who
takes risks to create a new product or start a
new business.
Today many kids start their own businesses,
and you can be one of them. Think about it.
You're the boss! You can pick what interests you
most and build a business around it. If you like
art, you can start a design business. If you like
writing, you can write a book and sell it yourself.
If you enjoy the Internet, you can launch your
own Web service company. If you want to help
a particular cause, you can raise money for it.
2
With a few business skills and a dash
of self-confidence, any kid can become an
entrepreneur. But being the boss comes with
a lot of responsibility because the success or
failure of your company is in your hands!
There are lots of
benefits to being
self-employed. You
get to make the
rules, create your
own hours, and
choose your place
of work.
Chapter
1
A Hobby Grows
into a Business
Most kids create businesses out of a hobby.
That's what Kenny Kirkpatrick did when he turned
his passion for woodworking into a business
called Ken's Pens.
When Kenny was eight years old, he saw an
ad for pen kits in a woodworking catalog and
decided to give it a try. By the age of 13 , he
had a new moneymaking enterprise selling
wood-covered pens.
Kenny figures that the cost of the raw materials
for each pen is about $5. He sells his pens for
$25 to $5 0. At these prices he can pay his
advertising and shipping costs and still have enough
money left over to make a nice profit.
0 Kenny sands and smoothes the outsides of his
pens.
He buys the inner pen parts from another
company. Then he puts them all together.
Sometimes kid entrepreneurs face obstacles
because they are young. Crystal Ann Ramous
made scenery for her school drama club.
Teachers and friends praised her work. So she
donated her time to arrange flowers for school
and church events. But then she discovered that
people would pay her for her services. At 13, she
decorated a wedding for more than 200 people!
In spite of her talent and achievements, however,
many people doubted that Crystal could run a
business because of her age.
In 2003 Crystal attended a summer business
camp for children called BizCamp. It was run by
the National Foundation of Teaching Entrepreneurs
(NFTE). There, she improved her math skills and
learned how to write a business plan. A business
plan helps young entrepreneurs map out the
important details of their new company.
The BizCamp experience boosted
Crystal's confidence, and she
went on to expand her
flower service business.
In
2003 Crystal won NFTE's
:)
BizPian Competition.
5
0 Elise and Evan teamed up to sell a lot of
olate.
A Kid Choeolate Business
To be successful in business, it's important to
start with the right ingredients. When she was
three years old, Elise Macmillan learned how to
make candy from her grandmother. At ten, she
started selling her homemade chocolate to people
in her neighborhood.
In 1998 Elise opened The Chocolate Farm.
Soon after, her brother Evan joined the business
and they launched a new Web site on the
Internet to sell their candy all over the world.
Now the popular Web site gets about 10,000
visitors a day!
6
Elise and Evan make a winning team. She is in
charge of making up new recipes while he plans
different ways to sell their candy. Today The
Chocolate Farm brings in more than
$1 million a year.
The story of Elise, Evan, and
The Chocolate Farm has been
reported in newspapers and
magazines. The two have also
appeared on many television
shows. Who knew
chocolate could be
so g ood for you?
!n 2001 The Chocolat(:; �
Farm was named
h t:> top youth fot'ld
b usiness in tne U r.itr-d
S tate'> by YoungEfz
magaz1ne.
7
Chapter 2
Kid Entrepreneurs
Have Great Ideas
Erica Gluck thought up a new food business
when she was just seven years old. She asked the
owners of a pasta shop if she could sell some of
their tasty pasta at a weekend farmers market. At
first her parents thought she was crazy!
But then they decided to help her.
The first week the Gluck family
bought 120 pasta packages
at $1.25 each. They sold the
packages for twice that amount.
Suddenly Erica's Pasta was
born. The only extra item they
bought was a tablecloth for th
farmers market for $1.29!
8
The Top 10 Kid-Owned Businesses
Here is a list of the top 10 moneymaking,
kid-owned businesses from 2001:
1. Computer Hardware and Software
2. Infotainment (Information and Entertainment)
3. E-Commerce (Internet)
4. Food
5. Computer Design
6. Home and Office Services
7. Sports
8. Arts and Crafts
9. Agriculture
10. Practical Products
Before long, Erica's parents began dedicating
all their time to running Erica's Pasta. The Gluck
family now also sells olive oils and breads on the
Internet. In addition, they manage Pasta Press, a
company that publishes pasta cookbooks. Erica
helps her dad create kid-friendly recipes.
9
A Kid Teeh Business
Tyrone Gray started his business, T MCP Printing
Services, out of his home in 1999. He was 15 years
old. Two years later he moved his company into
a storefront in a busy part of town because he
needed more space. Today he makes a monthly
profit of about $1,000.
Tyrone identified an important key to business
success-marketing. Marketing is telling customers
about your business and selling your products.
Tyrone offers his customers a toll-free business
number and a company Web site. He e-mails
bulletins to newspapers and networks, or makes
contact with other businesses, through the Chamber
of Commerce. This is an organization that helps
local businesses. Tyrone is their youngest member.
With the Chamber's help, he held a grand opening
to bring more attention to his company. This event
gave him a lot of free publicity when a local
newspaper ran a front-page story about him.
Printing services print
everything
to manuals.
10
from cards
:)
Chapter
3
Kid Entrepreneurs
Love Their Work
Aaron Greenspan has liked playing with
electronics since he was a young boy. He
practiced his craft by fixing computers for
his friends and family. They became his first
customers. Soon Aaron started fixing computers
for different businesses. At 15, he became
president of his own company, Think Computer.
Aaron uses the Internet to reach customers
around the globe. His company's Web site gives
information about his products and services.
Aaron thinks it's a perfect way to build his
business since it allows people to focus on his
work instead of his age.
Another computer company was created by
Pankaj Arora. Pankaj started out by taking apart
his father's old computers. He ruined a few, but
that's how he learned to fix them. At 16, Pankaj's
persistence paid off. He started Pankaj Arora
Software.
Pankaj had discovered an important secret
of business success. When you love what you're
doing, it doesn't feel like work. He should know.
At one time he turned down a job paying
$100,000 a year! That's because money is not the
main reason Pankaj works on computers. Besides,
he has never wanted to work for someone else.
He enjoys running his own company.
<: In 2000 Aaron created the Think Computer Foundation.
It provides computers for children in Jamaica and Brazil.
13
Starting Your Own Business
Are you thinking about starting your own business?
Here's some good advice from Pankaj to inspire you:
1. Think and prepare before you make a decision. Ask
yourself: How will I feel about my decision? What
do my parents and peers think of my decision?
2. Know your stuff. Study the business or industry in
which you're interested. Take the time to learn all
the necessary skills you will need.
3. Never quit. A good leader needs to be motivated,
energetic, and able to take success-and failure-in
stride.
4. Don't expect success overnight. Plan to work long
and hard to turn your plans into reality. Don't
be discouraged by other people. Be confident in
yourself and in your abilities.
14
A Kid Farming Business
Kelsey Deaton had an enterprising idea for a
new business. This creative teenager decided to
cut a giant maze into her family's cornfield. She
named it Deaton's Corn Maze. The first year, over
1,000 customers bought tickets to visit.
Kelsey did a lot of homework before launching
her business venture. She asked her friends and
neighbors if they would visit her maze and how
much they would pay. Their answers helped
Kelsey. She was able to convince her parents
to rent her 8 acres (3 hectares) on which to
build her maze.
After the success of her first year, she increased
the size of the maze by 10 acres (4 hectares) and
more than doubled her business.
e The maze is an ancient art that
thousands of years.
has been around
Today there are over 665
mazes in the United States.
for
corn-crop
Findin� Workers
Fishing with his grandfather was always one
of Travis Keith Bruce's favorite pastimes. One
summer he and some friends decided to raise
fishing worms. Then Travis did an Internet search
on worms and learned that he could make money
with his new hobby. So, at 12 years old, he
launched T. K. Worm Factory. His
company sells earthworms.
Now he takes orders from
customers as far away as
Japan and Ecuado�
Travis hired his
best friend, Decardos
Maddox, to help him run his
company. Together they feed
the worms and find ways
to make the business grow.
Travis and Decardos are a
good team.
16
Chapter 4
Kid Entrepreneurs
Make a Differenee
Many kid entrepreneurs use their leadership
skills outside the business world, too. These
young go-getters work with charity groups to
make a difference. One such person is 11-year-old
Megan Britton. Her idea for a charity garage sale
helped raise money for her community.
0 Megan's garage sale inspired her friends to
get involved.
Path to Change
Here are the steps Megan Britton took to do
something for her community:
See It: Megan saw that many children in her area
didn't get birthday presents. She also saw that they
needed food during the summer when the school
lunch isn't offered.
Believe It: She set a goal to raise $200 through a
garage sale at her house.
Build It: First, she asked for donations of food and
money. Then, with her parents' support, she created a
plan for the garage sale. She printed fliers to spread
the word in her community.
Do It: Megan's two-day summer garage sale
included food, books, and donated items from the
neighborhood.
Reflect: After raising an amazing $3,100, Megan felt
great. Her project brought joy to many children.
All together
the school and community recycling
projects coli cted 40,000 bottles and cans and
ra1sed $1,320.
18
�
Do Something is a nationwide group of young
people who help with advice and support. In
2003 Bryan Condy asked Do Something for help.
He wanted to hold a recycling event at his high
school. Bryan made a plan and then he wrote a
skit about recycling. At the event, kids acted in
the skit. Kids also created recycling posters and
won prizes for the best ones. The event was a
great success.
The next year his school's recycling club
arranged for a community event to raise money
by recycling. Bryan asked students in a marketing
class to design a T-shirt for the project. Teachers
wore the T-shirts a week before the event to
help spread the word. Then Bryan got three local
businesses to donate prizes for the event. He
even made a video about recycling.
-·­
......
0
Kid Entrepreneurs Around the World
Today kids are making a difference around
the world. In Costa Rica, Janine Licare and Aislin
Livingstone started Kids Saving the Rainforest
( KSTR) when they were just nine years old.
They sold painted rocks at a roadside table.
Newspapers and magazines wrote articles about
KSTR. The free publicity helped spread the word
about the problems of the rainforest.
A year later KSTR opened a store
to sell artwork. All the money
raised goes toward helping
preserve the rainforest.
The KSTR headquarters
serves as an information
center where people can
learn about the rainforest.
Janine Licare is
holding a sloth, a
rainforest animal.
20
:>
Conelusion
Look around you. Is there a group that needs
your help? What do people in your neighborhood
need? Are there dog owners who might need
a dog walker? Is there a home that needs yard
work done? Does someone need help learning new
computer skills? Do cars need washing or houses
need painting? If you can fill a need, you have the
idea for a new business.
Be sure to research your idea carefully and
check out the safety of whatever work you
choose. Safety is one of the most important
things to think about in any business. With careful
planning and lots of hard work, you can join the
world of the self-employed. It's never too early to
start making your dreams come true.
Glossary
business plan (8/Z-nis PLAN) a way of thinking ahead of time
about an activity to make money (page 5)
employee (em-PLOY-ee) a person who works for some person
or business for pay (page 2)
enterprise (EN-tuhr-prighz) something that a person plans or
tries to do (page 4)
entrepreneur (on-truh-pruh-NUR) a person who plans, sets up,
and runs his or her own business (page 2)
headquarters (HED-kwawr-tuhrz) the main office of a business
(page 20)
hire (H IGHR) to give someone a job in exchange for payment
of money (page 76)
launch (LAWNCH ) to start something on a course or in a
direction (page 2)
marketing (MAHR-ki-ting) selling and promoting a product (page 70)
network (NET-wurk) to build connections with other people or
businesses (page 70)
organization ( awr-guh-nuh-ZAY-shuhn) a group of people that
come together for a common goal; a business or company
(page 10)
profit (PROF-it) the money left over after all the costs of a
business are paid (page 4)
publicity (pu-BLIS-i-tee) making information about a product or
business known to the public (page 70)
raw material (RAW muh-TEER-ee-uhl) a supply needed to
create a product (page 4)
22
Index
BizCamp, 5
business plan, 5
Chamber of Commerce, 10
charity, 77-78
computer, 72-73
Do Something, 79
environment, 79-20
farming business, 9,
15
food business, 6-9
hobby, 4
Internet, 2, 6, 9, 73, 76
marketing, 70
National Foundation of Teaching Entrepreneurs (NFTE), 5
printing, 70-77
rainforest, 20
recycling, 78-79
YoungBiz magazine, 7
23
Comprehension Check
Summarize
Review the businesses in this book. What are two
benefits of running your own business? What are two
problems that make owning a business difficult? Use
this information to summarize the book.
Think and Compare
1. Which of the kid businesses that you read about
in this book do you think would be the most
successful? Use information from the text to
support your answer. (Compare and Contrast)
2. What kind of business would you like to start? Why
do you think that you would be successful?
(Synthesize)
3. Why is it important for people to start businesses?
How do different businesses help people around
the world? What kind of businesses are the most
important? (Evaluate)
24
Starting a Business
Interview a family member or friend who has
started a business. Ask them how they started
their business, what problems they had, and
how they solved them. Write up your interview
and share it with the class.
Create a Business Plan
Pretend that you are starting a new business. Think
of a good business to start. Then write a business
plan. Describe your product or service. Describe your
customer. Include information about how you plan
to price, advertise, and market your new product or
service. Include a name for your company.
Kids Work
Owning a business can be an exciting
adventure.. It gives you the chance to see
your ideas become a reality. What skills do
you need to be successful in business?
4.3 Week 3
The McGraw·Hill Companies
ISBN D · 02 ·193035 ·X
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