Everyone wants to forget that our nation is in an economic recession. We presume that the current financial crisis is a myth. Almost akin to being drugged, we live in a complacent world, thinking it will just come around.
The bottom tier of our economy is maxed out. It is financially squeezed hard. The middle class is bearing more financial hardships than previous years in their life time. We cannot rely on our government to pull us out of these hard times. We must, like our human skin, tap into our innate abilities to regenerate.
As we approach another year of recession, do not shield your children from the pains of economic realities. The traditional algorithm of the typical middle class families goes like this: ” student loan, college education, jobs, student loan debt repayment”. It must be rehashed to take into account our present economic climate. The children of this generation must be taught the science of “economic survival”. Help them acquire job skills or start to “take business risks” as young as possible. They must learn how to make an economic contribution to your family’s financial situation.
Encourage your children to go into job internships or volunteer opportunities in their spare time instead of playing video games or watching tv shows. Give them an understanding of a key economic principle called “opportunity cost”, that is, the cost of lost time. Teach them now to face the challenges of the new economic horizon. The children who have job skills, resilience, and the “courage to take risks” will be those who will survive the future consequences of our nation’s ill-fated monetary and fiscal policies.
The Case of China and India
If we are going to search for tangible proofs of this model, we can find success stories in countries like China and India. In the case of China, private businesses are called small and medium enterprises (SMEs). SME’s account for 60% of industrial output. SMEs are also the fastest moving economic sector in China.
It is noteworthy that Chinese businessmen pay cash for their luxurious BMW cars. They apparently know the value of money. These Chinese businessmen understand how to avoid going into deep debts. For the Chinese people, they go into private businesses to survive. It becomes a matter of subsistence.
The Chinese struggled with government policies that are sometimes more unreasonable than the US, but they thrive amidst this scenario.
The same entrepreneurial scene occurs in India. India, on the other hand, took advantage of opportunities that emanated from their nation’s economic and political crisis. The Indians experience entrepreneurship as part of their daily lives. They see successes and failures around them. Even if the political climate in India is not conducive to business with bureaucratic red tapes, it did not prevent them from making a plunge in various businesses. The hard hit sector in their economy moved and acted in an “entrepreneurial spirit” to survive.
The Strategy for the US Economy to Recover Begins at Home
We should encourage our children to take the risks of starting a business of their own. Whether they will fail or succeed will be a “MBA education” in the practical sense. Corollary to that, your children will be making a contribution to the economic future of our nation. In the Hollywood film “The Social Network”, Facebook creator, Mark Zuckerberg was coding the Facebook software at the wee hours of the morning while his peers were busy drinking and partying. Ideas lead to innovation, which are critical ingredients in start-up businesses. The Internet is a very familiar comfort zone for this generation, though not the only niche in the market. Your children can start an Internet business.
But how can you distinguish the legitimate Internet business from scams?
It is recommended that you begin teaching entrepreneurship through a reliable business model. Many young entrepreneurs started with SBI Site Sell. The SBI business model for students will guide your children about the “ins and outs” of the online business. SBI synthesizes lessons learned from many Internet business models. SBI will help your child gain skills that they would normally get from business schools.
There may be other legitimate business models that you may come across. Research about the companies claiming that they can help you. Be sure to test them out before you make a final commitment. Take advantage of the company’s trial period so you can make an educated guess if this is the right business model for your child. SBI SITE SELL gives you are 45 day free trial period as their guarantee at $29 per month. Research for similar deals with SBI competitors
Entrepreneurship is a skill, almost analogous to “healthy risk taking”. It starts within families. Entrepreneurship must grow in an environment where the grandparents, fathers and mothers are entrepreneurs. Or they are in a community where business is fostered.
Both China and India economies are great examples to begin the study of entrepreneurship. These countries are heavily populated, which go against the arguments of environmentalists and non pro-life movement, that overpopulation leads to poverty and destruction of our environment. Human resources are valuable. It can save families and nations from financial hard times.
Entrepreneurship Riding Growth in China and India, Knowledge.Insead.edu
Entrepreneurship in China, Internationalentrepreneurship.com