SimMGY

ENTREPRENEURSHIP AWARENESS EDUCATION: AN EXAMPLE IN AN
ELEMENTARY SCHOOL

Rebecca W. Ball
Fred M. Beasley

Northern Kentucky University

ABSTRACT

Issues ofentre preneurshi p and small business development have become increasingly important
as the worldwi de economy depends more and more on new firms for tire production ofthe world'
products and services and employment of the world's populatiori. This research examines
entrepreneurship awareness education in the elementary curriculum. rln example of how
enirepreneurshipawarenesscan be introduced to elementaryschool studentsis described. The
results of an assessment that sought to measure student knowledge of entrepreneurship and
economics and constructs related to new venture creation prior to and following

entrepreneurshi pand economics instruction are offered. Findings suggest that entiepreneurship
instruction and parental role models may influence positi ve attitudes toward and an awareness

of entrepreneurship at the elementary school level.

INTRODUCTION

Issues of entrepreneurship and small business development have become increasingly important
as the worldwide economy depends more and more on new firms for the production of the
world's products and services and employment of the world's population. The first step in the
process of new venture creation and success is awareness of entrepreneurship. When potential
entrepreneurs become aware of the process of new venture creation, they will be open to
information from the environment concerning such opportunities (Ashmore, 1992). Indeed,
research has begun to show that in the absence of awareness about entrepreneurship, new
venture creation becomes extremely difficult (Marchigiano-Monroy, 1993).

ln the context of entrepreneurshipeducation, McMullan and Long (1987) suggest that the focus
of the entrepreneurship awareness stage should be to inform students about the skills, abilities,
and knowledge required to create a new venture in an effort to moderate their attitudes and
intentions about the possibilities for the creation of a new business. In addition, even students
who do not pursue entrepreneurial careers can benefit. Entrepreneurship education can allow
students to make better career decisions and provide a greater understanding of the entrepreneurs
that might employ them some day.

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Journol ofSmall Business Strategy Volume 9, 1Vo. I Spring l998

However, the value of entrepreneurship education is often challenged. There is some evidence
that entrepreneurial success is more dependent, not on education, but on psychological attributes
such as the need for achievement (McCelland, 1961), internal locus of control (Brockhaus &
Nord, 1979), risk-taking propensity and tolerance for ambiguity (Begley & Boyd, 1987), and
personality(Begley &. Boyd, 1985), as well as on the presence of family role models(Matthews
and Moser, 1996). Studies of entrepreneurial executives (Hood and Young, 1993)and college
professors (Vesper, 1982) find some support for the notion that successful entrepreneurs are
"born." In fact, some researchers have argued against the educational development of
entrepreneurs, because they believe it can inhibit the creative nature of those individuals
(Shapero, 1975). Yet, entrepreneurship education programs continue to increase (Gartner &
Vesper, 1986),and authors attribute this increase to a belief that entrepreneurshipeducation aids
in entrepreneurial development (Kuratko & LaFollette, 1986).

In recent years, entrepreneurship education has become a part of the elementary school
curriculum in many states. One example can be found in the state of Ohio. In an effort to assure
adequate instruction in its public schools, the state of Ohio recently introduced proficiency exams
for grades 4, 6, and 9. These exams cover a wide range of topics, including a social studies
component, which covers economics and entrepreneurship. Thus, increased classroom
instruction is being devoted to entrepreneurship education in Ohio's public schools during the
elementary years.

This research has three goals. Two immediate objectives are to provide an example of how
entrepreneurship awareness can be introduced to elementary school students, and to see what
these students have learned about entrepreneurshipand economics. In addition,a third long-term
objective of this research is to provide a baseline of information about participating students that
can offer the opportunity to examine the effects of early introduction to entrepreneurship
awareness.

INTRODUCING ENTREPRENEURSHIP AWARENESS

Vast differences exist in the delivery of entrepreneurship education, however, all programs could
be classified in terms of inputs, process, and outputs (Marchigiano-Monroy, 1993), Inputs
include the issues of student population, instructors, and objectives. The process component
involves such issues as pedagogics, materials used, and location. Outputs can include intentions,
attitudes, skills, start-ups, satisfaction, and success. The remainder of the paper is organized
around these three components.

INPUTS

Four classes of fifth graders at an Ohio public school participated in a specialized program
designed to introduce young people to entrepreneurship awareness. A team-teaching approach
was used to introduce the students to the concepts of entrepreneurship and economics that were
deemed most important. One of the instructors was a university professor of entrepreneurship
and management and the other was the homeroom teacher. The two primary objectives of the
program were to create awareness of entrepreneurship as a career option, and to introduce the
students to the economics and entrepreneurship terminology that would be included in the 6th
grade proficiency exam.

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Journal ofSmall Business Strategy Volume 9, No. l Spr(ng 1998

PROCESS

The program included l0 segments that were approximately l hour in length and were spread
over a two-week time period. The program included lectures as well as in-class and home
assignments. The primary project that students were involved in was the development of a
simplified business plan.

During the first session, students were introduced to the basic factors of production and the
concept of how an entrepreneurcreates profit. As homework on the first night, each student was
asked to create a list of five products or services that they believed could be produced for a profit.

At the start of the second session, the homeroom teacher placed the students into groups of four
and five students. Prior to the start of classroom instruction, each student group was asked to
choose three of the products or services from the lists generated by each group member and to
draw picturesoftheproductsorwritedescriptionsoftheservices. A homeworkassignmentwas
then made which required each student to conduct three consumer surveys on each of the three
products. These surveys asked potential purchasers of the product or service whether they would
buy the product or service and how many they would buy during a specified period at three price
levels determined by the student group. Based on the consumer feedback, each student group
then chose one of the three products or services as a group product development project.

The third homework assignment attempted to illustrate the concept of specialization within
groups. The students were informed that they would each be assigned one of four "jobs" within
their group. These four jobs were CEO, Vice President of Research and Development, Vice
President of Marketing, and Vice President of Accounting and Finance. The role of each in the
development of the business plan was explained and each student was asked to complete a job
application and indicate their first and second "job" choice. The teacher then made work
assignments based upon these applications.

Students were given a packet and asked to work, as a group, and individually on the development
of their group business plan. Throughout the two-week period students were given assistance
on their individual projects and mini-lectures on concepts that they needed to use in the
development of the business plan. The primary elements of the business plan were a drawing
and/or description of the product or service, a list of requirements for production, a financial
plan, a marketing plan, and a summary argument outlining the benefits of the product or service
and its expected marketability.

Students were motivated by the fact that they were competing with the other student groups for
the best business plan. A panel of university business professors read each of the proposals and
the "winning" plan received a reward and recognition. Each group received written feedback on
their submission.

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Journal ofSmall Business Strategy Volume 9, No. I Spring l998

OUTPUTS

Assessment Method

In order to meet the goals of this research a two-part assessment instrument was used. The first
tested student knowledge of the concepts covered by the program. The second assessment
component examined constructs which have been linked to entrepreneurial success, such as need
for achievement (McClelland, 1961), internal locus of control (Brockhaus lk Nord, 1979), and
risk taking propensity (Begley tfc Boyd, 1987). A multiple choice exam and a survey of
constructs related to new venture creation, both developed by the National Council on Economic
Education(Choices Bc Changes, 1992) were used to meet the two assessment objectives. Student
was also asked to indicate if a) their mother owned her own business, and if b) their father owned
his own business. In order to obtain accurate responses to these two questions, students received
assistance from the test administrator regarding whether their parents could be classified as
business owners.

Each of the four classes of 5th grade students in the elementary school participated in the
research by completing the multiple-choice exam and the attitude survey. Two of the four classes
completed the exam and the survey prior to receiving the educational program in
entrepreneurship and economics and two groups completed the exam and the survey aller
receiving the educational program. The classes were randomly assigned to the
"assessment-before-education" and the "assessment-alter-education" groups. The use of
treatment and control groups permits a fuller appraisal of the impact of the educational
program.

The class sizes were approximately equal in size, academic ability, and gender composition. One
hundred six (106) children participated in the assessment. Of those, 54 were boys and 52 were
girls.

Assessment Results

Section I: Knowledge of Concepts

A majority of the students answered most of the 20 economics questions correctly. A summary
of the questions and the percentage of correct responses is found in the Appendix . The most
dilTicult questions for students were those that examined the concepts of capital resources
(question 8, 27 percent correct), the productivity of capital resources (question 17, 41 percent
correct), opportunity costs (question 4, 49 percent correct), and production (question 18, 51
percent correct).

On the other hand, nearly all students correctly understood the relationship between effort and
outcome (question I, 97 percent correct), the relationship between attending school and obtaining
a higher paying job (question 6, 96 percent correct), and the relationship between price and
demand (question 9, 93 percent correct and question 15, 92 percent correct).

For many of the test questions, there were only small dilTerences in the responses of the treatment
and control groups of students. However, there were significant dilTerences (p& .05) in the
responses of the two student groups to several questions. As indicated in Table I, students that
received instruction were more likely to understand the concepts of human capital (22 ye vs 4 yo

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Journal ofSmall Business Strategy Volume 9, No. l Spring 1998

correct responses), human resources(73% vs 43% correct responses), and entrepreneurship(69%
vs 51% correct responses). They also were more likely to correctly answer questions about
opportunity costs (59% vs. 40% correct response to question 4) and capital resources (37% vs.
17% correct response to question 8).

Table I
Si nificant Differences in the Knowled e Test Res onses of the Students That Did/Did
Not Receive Instruction

Percenta e of Correct Res onses

Students Receiving Students Not Receiving

Conce t uestion number Instruction Instruction

Human capital (¹5)
22%'%'uman

resources (¹7) 73%
43%'ntrepreneur(¹11) 69%'1%

'hi-square =10.31 (df=3, p&.02)
'hi-square =11.93(df=3, p&.01)
'hi-square = 8.30 (df=3, p&.04)

On only one question was there a significant difference(p & .05) in the answers of boys and girls.
Boys were more likely than girls to correctly answer that a house painter's skills are a human

resource (69% vs. 46%).

Section 2: Survey of Selected Constructs

The results from the survey of constructs(see Table 2) indicate that students strongly believe that
education improves skills (95 percent) and can help one to achieve their personal goals (91
percent). The vast majority of students also believe that they can make plans (87 percent) and
make choices (85 percent), and believe that they are impottant(88 percent), creative (84 percent),
and can work with other people (85 percent). The students were less sure that they were part of
the economy (45 percent).

There were only small differences in the responses of the treatment and control groups of
students, and on only one question was there a significant difference in the answers of the two
groups. Those that had received instruction in economics were less likely to believe that they
were workers ("I am a worker") (t = 2.80, p &.01).

There were some differences in the responses of girls and boys on the survey of selected
constructs, however there was a significant difference (p & .05) in the answers of boys and girls
on only one of the questions. Girls were more likely than boys to feel that they were important.

As mentioned previously, the fti)h grade students were also asketl to identify if their mother
owned her own business and if their father owned his own business. Twenty-nine of the 106
students indicated that at least one of their parents owned a business. There were some

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Journal ofSmall Business Strategy Volume 9, No. i Spring /998

Table 2
Results of Surve of Selected Constructs

Disagree or Not Agree or
Strongly Sure Strongly Agree
Disagree

I can make choices 2 13 85

I am a worker 6 33 61

I am not part 45 27 28
of the economy

Education improves I 4 95
my skills gs
knowledge

I am important 4 8 88

I do not have 63 21 17
control over my life

Success in life 67 26 8
usually comes
from being lucky

I can make plans 5 9 87
and set goals

I can be productive 5 25 71

Cooperation 10 15 76
Increases productivity

I am not creative 84 4 12

I can contribute 9 31 60
to the economy

I cannot work 85 7 9
with other people

Education can help 6 4 91
me reach my goals

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Journal ofSmall Business Strategy Volume 9, No. l Spring 1998

differences between the responses of these children and the answers of other students on the
survey of selected constructs. The children of small business owners felt more positively about
the benefits of education and their own importance and value to society. Furthermore, on all
positively worded items (e.g., "I am important"), students with parents that owned a business
were more likely than other students to agree with the statements (see Table 3).

DISCUSSION

This research has examined the introduction of entrepreneurship awareness education in an
elementary school. Based on the program assessment described, aRer receiving instruction in
entrepreneurship and economics, students more clearly understood the concept of
entrepreneurship, human capital, and human resources. Thus, students illustrated a higher level

of awareness regarding entrepreneurship.

ln addition, student and teacher comments indicated not only a higher level of awareness of
entrepreneurship, but a sense of truly enjoying being involved in the program. Students became
increasingly excited as they began to compete for the winning business plan. In fact, some
students indicated to the guest instructor that they have plans to begin a small part-time venture
during the upcoming summer months as a result of their increased understanding of
entrepreneurial efforts. Both the classroom teacher and principal were also quite satisfied with

the program.

It could be argued that there might have been more striking differences between the students that

had and had not received the educational program if the examination questions were more
difficult. A number of the questions were quite easy for students to answer even if they had not
yet received the instruction in economics and entrepreneurship. For example, one question asks,
"What will happen if the price of hot dogs goes up?" More than 93% of the children chose the
correct response, "Consumers will buy fewer hot dogs" (see Appendix).

There was only one statement where the responses of those students receiving entrepreneurship
awareness instruction prior to the assessment were significantly different from the responses of
the students who had not yet received instruction. In response to the statement, "I am a worker,"
students who had received instruction were more unsure about whether or not they agreed with
the statement. This uncertainty could have been a function of their understanding of the term
"worker." During the entrepreneurship awareness program students discussed the concepts of
management and leadership. Each student was assigned a leadership role for the purposes of
completing the business plan project. Thus, based on this assignment the students may have
defined worker as a laborer and may have viewed themselves more in a management or
leadership role than a "worker" role.

There were few striking differences between boys and girls on both the knowledge test and the
survey of selected constructs. However, on one construct, the responses of girls were
significantly different from the responses of boys. Girls were found to have a higher perception
of their importance than boys. This finding may be attributed to the age of the girls participating
in this research. Participating girls were 10 or I I years of age. They may have been
experiencing a period of peak self-esteem prior to the teenage years when perceptions of
self-worth typically plummet.

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Journal ofSmall Business Strategy Volume 9, iro. l Spring /998

Table 3
Results ofSurve of Selected Constructs Percent of Students that A ree/Stron I A ree
~inch s t

Students with Students with
Parents that Own Parents that
a Business Do Not Own a

a Business

I can make choices 90% 83%

I am a worker 69 58

I am not part 31 26
of the economy

Education improves 100 93
my skills and
knowledge

I am important 93 87

I do not have 24 13
control over my life

Success in life 10 7
usually comes
from being lucky

I can make plans 96 83
and set goals

I can be productive 83 66

Cooperation 90 70
increases
productivity

I am not creative 11 12

I can contribute 62 59
to the economy

I cannot work 4 10
with other people

Education can help 97 88
me reach my goals

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Journal ofSmall Business Strategy Volume 9, No. I Spring l998

Another important finding of this research is the influence of parental role models. Students
whose parents were entrepreneurs felt more positively about the benefits of education and felt
more positively about their own productivity, goal-setting capabilities, importance and value to
society. Although this study can only provide correlational and not causal results, this finding

suggests that entrepreneurial parents can have an influence on the attitudes and self-perceptions

of their children. The finding also tends to reinforce the results of previous studies (e.g.,
Matthews & Moser, 1996; Scott & Twomey, 1988) which have found that a family role model
is an important determinant of entrepreneurial behavior. Further research should attempt to
validate this finding and begin to examine the underlying factors that might cause children of
entrepreneurs to form attitudes that are different from other children.

An important long-term objective of this research is to provide a baseline of information about
participating students that can provide the opportunity to examine the effects of early
introduction to entrepreneurship awareness. A majority of these students will continue their
education together through the local middle and high schools. Thus, those that continue on this
expected educational path provide unique longitudinal research opportunities. On an alternating

years basis, students remaining in this population can be tested and their awareness and

understanding of entrepreneurship can be examined. The findings will be subject to the
limitations of this type of research, primarily subject mortality and dilferences in teaching styles
and content presented to participating students.

REFERENCES

Ashmore, C. (1992).Model entre reneurshi ro rams in the U S Pre-conference presentation
at the Seventh Annual National Conference of the United States Association for Small
Business and Entrepreneurship, Chicago, IL.

Begley, T.M. and D.P. Boyd. (1985). The relationship of the Jenkins Activity Survey to Type
A behavior among business executives. Journal of Vocational Behavior 27, 316-328.

Begley, T.M. and D.P. Boyd. (1987). Psychologicalcharacteristicsassociated with performance
in entrepreneurial firms and smaller businesses. Journal of Business Venturin 2(1),
79-93.

Brockhaus, R. H. and W.R. Nord. (1979). An exploration of factors affecting the entrepreneurial
d 3: 9 I 9 3 3 pl dff .~ndi ~ f 9
National Academ of Mana ement, 364-368.

Gartner, W.B. and K.H. Vesper. (1986). Experiments in entrepreneurship education: successes
and failures, Journal of Business Venturin 9 (3), 179-187.

Hood, J E. and J.E Young. (1993). Entrepreneurship'srequisite areas ofdevelopment: A survey
of top executives in successful entrepreneurial firms. Journal of Business Venturin 8
(2); 115-135.

Kuratko, D.F. & W.R. LaFollette. (1986). A small business management/entrepreneurship
curriculum: A dual progression experience. Journal of Business Education, 267-271.

Marchigiano-Monroy, T. (1993). Epilogue: Toward a descriptive national model of
entrepreneurship education. In Frank Hoy, Thomas G. Monroy, and Jay Reichert (Eds.)
The Art and Science of Entre reneurshi Education - Volume I, Berea, OH: Project for
Excellence in Entrepreneurship Education.

Matthews, C.H. and S.B Moser. (1996). A longitudinal investigation of the impact of family
background and gender on interest in small firm ownership. Journal of Small Business~M, 29M 3.

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Journal ofSmall Business Strategy Volume 9, No. l Spring l998

McClelland, D. C. (1961). The Achievin Socie . Princeton, NJ: Van Nostrand.
McMullan, W.E. and W.A. Long. (1987). Entrepreneurship education in the nineties. Journal

of Business Venturin 2, 261-275.
N 1 (C 9 E 1 Ed 1 .(1992).C~hi dCh .N Y&,
Scott, M.G. and Twomey, D.F. (1988).The long-term supply of entrepreneurs: Students'areer

aspirations in relation to entrepreneurship. Journal of Small Business Mana ement, 5-13.
Eh p A.(1977). Th d( ph d, 1 h( p . P~h( T d, 9.12.
Vesper K.H. (1982). Research on education for entrepreneurship. In C.A. Kent, D.L. Sexton,

and K.H. Vesper (Eds.), Enc clo dia of Entre reneurshi, 321-343.

APPENDIX

ECONOMICS AND ENTREPRENEURSHIP EXAM

Percent Correct (Correct Answer)
Question

97% ( C )
1. Instead of going out with her friends, Jane chose to stay at home to study for her math test.

Jane got a high score on the test. Why did she earn a high score on the test?
A. Because Jane is smart
B. Because Jane doesn't like going out with her friends
C. Because Jane chose to study
D. Because Jane's teacher likes her

7lo/ (C)
2. A teacher has five movie tickets to give her ten students. What is most scarce?
A. Teachers
B. Movies
C. Tickets
D. Students

75'/o (D)
3. On your way to the shopping mall, a friend asks you to play basketball. Another friend
wants you to go to his house to play video games. What must you do first?
A. Play basketball
B. Go to the mall
C. Play video games
D. Make a choice

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Journal ofSmall Business Strategy Volume 9, No. I Spring l998

49% (C)
4. On Saturdays Alicia usually goes to see a movie with her friends. However, last Saturday
she chose to visit her grandmother instead. What was the opportunity cost of Alicia's
decision?
A. Visiting her grandmother
B. The price of a movie ticket
C. Seeing the movie
D. Staying home with her parents and watching TV

I2ulo (B)
5. Jim wants to be a good cook. He is taking cooking lessons. Jim is improving his

?
A. Opportunity costs
B. Human capital
C. Work habits
D. Alternative choices

96% (C )
6. AI)er graduating from high school, Marcus found a better paying job than his sister who
dropped out of school. Why?
A. Marcus was luckier than his sister was
B. Men are always paid more to work than women are
C. Finishing school made Marcus a more productive worker
D. Marcus's sister had no choice

58% (B)
7. Identify which of the following is a human resource.
A. A hammer
B. A house painter's skills
C. A school building
D. A computer

27% (C )
8. What do we call a manufactured good that is used to produce other goods or services?
A. A human resource
B. A natural resource
C. A capital resource
D. An economic want

93% (A)
9. What will happen if the price of hot dogs goes up?
A. Consumers will buy fewer hot dogs
B. Consumers will buy more hot dogs
C. Consumers will stop buying hot dogs
D. Consumers will buy fewer hamburgers

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Journal ofSmall Business Srrasegy Volume 9, No. I Spring 1998

53% (B)
10. A video game company produced 10,000 copies of its most popular game, "Econ Whiz."
Before the holidays, the company received orders for 20,000 copies. What is this a sign of?
A. A surplus of "Econ Whiz"
B. A shortage of "Econ Whiz"
C. High prices for "Econ Whiz"
D. A shortage of video game players

60% (D)
I I. What do we call a person who organizes resources to make goods and services for a
profit?
A. An inventor
B. A consumer
C. A buyer
D. An entrepreneur

68% (A)
12. Which of the following is a result of limited resources?
A. We cannot have everything we want
B. We can always have everything we want
C. Producers can always make more goods and services
D. Entrepreneurs earn lower profits

g9% (C )
13. When buyers exchange their money to sellers for goods and services, we call this a

A. School
B. factory
C. Market
D. Street corner

32% (C )
14. Thomas Edison created the first electric light bulb. Over several years, he found ways to
improve his light bulbs and began selling them to people. What was Thomas Edison?
A. An innovator
B. An inventor
C. Both an inventor and an innovator
D. A capital resource

92e/o (A)
15. The grocery store cannot sell all of its apples. What can the grocer do to get people to
buy more apples?
A. Lower the price of apples
B. Increase the price of apples
C. Lower the price of oranges
D. Open a new store

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Journal ofSmall Business Strategy Volume 9, lVo. l Spring l998

80% (B)
16. John works for Mr. Stevens selling newspapers aller school. Yesterday, Mr. Stevens had

$ 15 in sales revenue from John's route. The papers cost Mr. Stevens $7, and he paid John $3
for his work. What did Mr. Stevens earn?

A. A capital resource
B. A profit
C. A loss
D. An innovation

41% (D)
17. It takes George one hour to wash his family's dishes by hand. When George uses the
dishwasher, it takes him only 30 minutes. Why does it take less time when George uses the
dishwasher?

A. George is a slow worker
B. George is not using his human resources productively
C. George is not a productive worker
D. George is a more productive worker when he uses capital resources

51% (B)
18. What do we call combining resources to make goods and services?
A. Financing
B. Production
C. Consuming
D. Marketing

57% (A)
19. Mr. Jones pays Sally one dollar every day to walk his dog. What does Sally earn for her
work?

A. Wages
B. Debts
C. Costs
D. Sales

65%( D)
20. Why do workers in a factory each perform ditferent tasks?
A. Because the boss tells them what to do
B. In order to receive wages
C. To charge a higher price
D. Because specialization increases their productivity.

From: Choices and Changeses Joint Council on Economic Education, New York, N.Y.

38