
Grades 3-5, 6-8
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Students will be able to:
In this economics lesson, students will calculate risks associated with starting a new business.
Warm-up
Start class with prompting them with the following questions:
Give students 3-4 minutes to compile a list of responses. Possible responses include: money, advertising, idea/product, passion, willingness to take a risk, education, hard work, time, location. After time is up, create a class list on the board of student responses and lead a discussion.
Modeling
Lead a class discussion to introduce the concepts of cost-benefit analysis. Discussion points include:
Model what it looks like to weigh the costs and benefits. Ask students to respond to the following prompt: What do you think are some benefits (pros/rewards) and costs (cons/risk) of starting your own business? Possible responses include: Benefits – make money, create business doing what you love, help others, be your own boss, choose who works with you, feels good when successful, set your own schedule; Costs – time, risk of failing, uncertainty of future, lose money, lack of knowledge about business/unsure.
Create a T-chart. Emphasize that if your benefits outweigh your costs than you should start a new business; however, if costs outweigh the benefits than you should not start your own business. Reiterate that each idea that the class has written down points towards a potential risk or cost and a potential reward or benefit. People who are considering going into business for themselves must weigh the costs against the benefits to decide if their idea is worth the effort. This is called a cost/benefit analysis. Discussion points include:
Emphasis that if your benefits outweigh your costs than your should start a new business; however, if costs outweigh the benefits than you should not start your own business. Reiterate that each idea that the class has written down points towards a potential risk or cost and a potential reward or benefit. People who are considering going into business for themselves must weigh the costs against the benefits to decide if their idea is worth the effort. This is called a cost/benefit analysis.
Group Activity
Use PBS’s BizKids Resource series to learn about what it takes to start a business and answer the questions provided on the worksheet. Students should work with a partner and require a computer with headsets to watch a series of several short videos about kids/teens that have started their own business on BizKids Business Profile Videos. Distribute a copy of the BizKids Video Worksheet to each student. Students should look up videos with their partner and answer the questions on the worksheet. Students are also required to take notes on the skills the kids needed and the lessons they learned in getting started in business. As an alternative, videos can be played for entire class. Lead a discussion over the worksheet to check for understanding and allow for more in depth discussion of the skills that may be necessary to start a business. Use the discussion points below:
Individual Activity
Have students complete Balancing Act. Within this activity, students should choose their favorite video from the previous activity and use that product to help weigh the costs and benefits in this activity. Using the knowledge and skills they learned from all of the videos, students should then identify the costs and benefits they need to be considered as if this was their personal business. Collect the worksheets upon student completion.
Students will complete the All In Business Formative Response worksheet. Collect student work. Look for examples of student understanding about the risks they would take and the things they would have to consider in order to structure a sound business.
Activity 1
Have students work in groups or individually. Explain the following:
The first decision you need to make is whether you will be in business on your own or in a partnership with someone else. Choose a partner or work individually. Now it’s time to build your plan. Research how to start your business plan by reading The Complete, 12-Step Guide to Starting a New Business from the Entrepreneur. Also,visit TeenBusiness: Entreprenuers Overview to review the section to help you become an entrepreneur. Your goal is to create an outline or mind-map to start getting your ideas out on paper.
Printed copies of the article and sections may be provided or students can complete their research via the web on a computer.
Grades 3-5, 6-8
Grades 3-5, 6-8
Grades 3-5, 6-8
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