Teen Attitudes about Entrepreneurship

Which 28-year old would you rather be: Lebron James or Mark Zuckerberg? This question posed on a morning sports talk show was prompted by the revelation that Mark Zuckerberg, the Founder of Facebook, is worth $2 Billion. Perhaps a more interesting question is: “Who are you more
likely to become: Lebron James or Mark Zuckerberg?”

Most teenagers, acknowledging that they are not 6’8”, 235 lbs, with freakish athletic ability, would concede that they will not be the next Lebron James. But many teens are less dubious about their potential to become a successful entrepreneur like Zuckerberg. In fact, most teens are not only interested and motivated to become an entrepreneur, but most are confident that they have the work ethic and skills to do so.

In 2004, the Kauffman Foundation contracted with ORC Macro to conduct background research on entrepreneurial attitudes and behaviors in children ages 9 to 12. They found that very little survey work had been done. A 2002 Gallup poll of youth attitudes with respect to entrepreneurship (commissioned by the Kauffman Foundation) found that 42% of 8 to 12 year olds, 44% of 13 to 16 year olds, and 47% of those 17 and older had thought about starting their own business. Junior Achievement (JA), Lemelson-MIT, and Harris Interactive released more recent survey data on youth attitudes toward entrepreneurship.

• Junior Achievement’s study, JA Worldwide 2006 Interprise Poll on Teens and Entrepreneurship, surveyed 1,474 students aged 13-18. Many of the students were active in JA programs and participated in the survey voluntarily.
• The Weekly Reader Research recently published the Lemelson-MIT 2008 Invention Index. Weekly Reader Research is a youth and family research organization (www.weeklyreaderresearch.com). They administered Internet surveys with a nationally representative sample of 1,004 13-18 year olds (sampling error of +\- 3.1 percentage points).
• The Kauffman Foundation commissioned Harris Interactive to survey 2,438 U.S. young people between the ages of 8 to 21 about entrepreneurship. The results are summarized in the Harris Interactive 2007 YouthPulse report prepared for the Kauffman Foundation.

Comparing the findings from these surveys is difficult for two reasons. First, JA and Lemelson-MIT surveyed 13-18 year olds, and Harris surveyed 8 to 21 year olds. Second, the focus of the surveys is slightly different, and question wording even on similar topics likely causes different responses from the students. However, an examination of the survey questions and responses reveals several trends in student interest, motivation, perception of risk, self-confidence, and perception of METS education.

Consistent with earlier Gallup surveys commissioned by the Kauffman Foundation, JA and Harris find that the idea of starting a business appeals to young people. JA and Harris asked students weather they would be interested in starting their own business someday.

The discrepancy between the “yes” responses could reflect the fact that students in the JA survey were not given the option of responding “not sure.”

Although both JA and Harris ask young people about motivation for starting a business, the list of possible answers differs. The appeal of earning a lot of money is near the top of both surveys. Youth also like the idea of being their own boss and using their skills to pursue their own creative ideas.

The JA survey also asked teens “What do you believe is the most likely explanation for people who do NOT start a business?”

• 36.7% responded “Not enough money to get business started.”
• 29.1% responded “Fear of failure.”
• 15.5% responded “Satisfied with existing opportunities.”
• 9.5% responded “Don’t know how/Not enough information.”
• 5.8% responded “Government obstacles (taxes, red tape, etc.).”

The Harris Interactive survey asked students to react to a list of reasons they might want to start a business of their own. They responded positively to:

• “Use my skills and abilities” (92%);
• “Build something for the future” (89%);
• “Be my own boss” (87%);
• “Earn lots of money” (85%);
• “See my idea realized” (81%);
• “Help community/solve social problems” (64%); and
• “Overcome a challenge” (60%).

Students seem unsure about the risks of starting a business. Both the Junior Achievement and Harris surveys gauged youth perception of risk compared to the risk of working for someone else. In the JA survey, students were asked: “Do you think there is more job security owning your own business or working for a company?”

• 36.5% responded “Owning own business”;
• 35.1% responded “Working for company”; and
• 28.4% responded “Not Sure.”

In the Harris survey, students were asked: “Do you agree with the statement ‘The security of working for someone else outweighs the benefits of running your own business?’”

• 7% responded “Strongly Agree”
• 22% responded “Somewhat Agree”
• 50% responded “Neither Agree Nor Disagree”
• 13% responded “Somewhat Disagree”
• 8% responded “Strongly Disagree”

Although many of the youth surveyed are not sure about the risks involved in starting a business, they seem to be extremely self-confident. The Junior Achievement, Harris, and Lemelson-MIT surveys asked about ease of starting a business, confidence in ability to start a business, and ability to invent an important product.

The JA survey asked students: “How easy do you believe it is to start a business today?”
• 1.8% responded “Very Easy”
• 6.2% responded “Easy”
• 42.8% responded “Somewhat Challenging”
• 47.9% responded “Difficult, but Possible”
• 1.3% responded “Almost Impossible”

The Harris and Lemelson-MIT surveys asked different questions, but the responses indicate that students feel confident in their abilities.

Given this confidence in their ability and work ethic, it would seem that youth would feel well-prepared by their teachers and schools. Survey results on this topic are mixed. The Lemelson-MIT survey indicates that teens understand the value of METS education, but most do not agree that their school is preparing them for a career in the METS fields. Survey work by Public Agenda suggests that students understand the importance of math and science education and are satisfied with their teachers, but most are not interested in pursuing a career in a METS field.

In the Lemelson-MIT survey, students were asked if they agree that there is value in hands-on project based METS classes in high school. They were also asked if the U.S. as a whole needs to improve the quality of METS education.

Students were also asked if they felt their school is preparing them for a career in METS Fields.

• 40.5% responded “Yes”
• 58.7% responded “No.”

In a recent Public Agenda report, 41% said they would be unhappy if they ended up in a career that involved a lot of math or science, but 70% of students say their teachers are helping them “learn a lot” in math and science.

Surveys show that students are interested in starting a business someday, motivated to make a lot of money, be their own boss, and contribute their own creativity to society. They are also confident that they have what it takes to become a successful entrepreneur. However, students do not seem to appreciate the link between METS education and entrepreneurship. Further survey work that flushes out the types of businesses that students are interested in starting would help to illuminate the perceptions of what being an entrepreneur entails—and the education they need to get there.