Entrepreneurship Education
June 29, 2006

Q:  Steve, I caught you on Fox News this morning. (Glad you ditched the moustache and goatee!)  It's interesting to note that entrepreneurs succeed in the U.S. in spite of our education system, not because of it.  Our education system is designed to turn out "good employees," not "good entrepreneurs."  That education model needs to change. -- Tom, Dayton, OH

A:  I have to agree with you in great measure, Tom. We have an education system that was created around the time of the Industrial Revolution when we needed to turn rural kids into urban employees capable of working in assembly line mass-market factories. As a result, we ended up with a school system focused on rote memorization and measurable, predictable results.

While that was all well and good for that new economy, it does not seem to make sense for this New Economy. In this interdependent global world, where little is the new big (nano technology, iPods, and small businesses rule the day here, in China, and in India for starters), re-thinking school makes sense.

Now don't get me wrong; I like education as much as anyone; I spent more time in graduate schools than I care to remember! And, while we all appreciate those teachers who made a difference, that change may be appropriate in this new economic era is not a radical notion.

We need an educational system that, while teaching math and science and reading and writing, also stresses creativity, initiative, risk analysis, and thoroughness; namely, the same sorts of traits that help make one a good entrepreneur and an informed, smart citizen. We are living in an entrepreneurial age, and that will only increase as the century progresses.

Just this week, India's booming entrepreneurial economy was on the cover of Time Magazine. Are American students learning what they need to in order to compete in this new world? No less an authority on international business than Bill Gates thinks the answer is a resounding no.

At a speech in 2005 before the National Governor's Conference, Gates said, "When I compare our high schools to what I see when I'm traveling abroad, I am terrified for our work force of tomorrow." (The Bill & Melinda Gates Foundation has earmarked almost $2.5 billion to education since 1999, part of which goes to promoting "smaller learning communities" intended to supplant huge high schools.)

The good news is that the Gates Foundation interest in education seems to be indicative of a shift in thinking on this subject:

Yet, while change is in the air, it is neither deep nor widespread. Most entrepreneurs learn about business either at home and/or through experience, and not school. Yet even so, we are living in the golden age of small business where ever more markets and tools are enabling us to be ever more successful. Let's hope the entrepreneurial education system catches up.

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Today's tip: Want to teach your child about entrepreneurship in the meantime? Then I suggest you pick up a copy of the great book for kids by Bill Rancic, the first winner of The Apprentice. Entitled, Beyond the Lemonade Stand, the book is chock-full of idea to get kids excited about being their own boss.

 

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