ENTREPRENEURSHIP MERIT BADGE


The Boy Scouts of America introduces the new entrepreneurship merit badge. Entrepreneurship is one of the most important "engines" that drive our country's economy. Through entrepreneurship, new ideas are turned into new business products, new ways are discovered to provide services to people, and entire new industries are created. In recent years, the businesses of successful entrepreneurs have not only contributed to economic vitality, but also have created most of the new jobs that employ the people of our country.

As you earn the entrepreneurship merit badge you will examine what entrepreneurs do, their characteristics and skills, and the different ways they contribute to our society. You will learn about identifying market opportunities, creating and evaluating business ideas, and exploring the feasibility of a business idea as you develop a basic business plan. You will also have the opportunity to see how everything fits together as you start and operate your own business venture.

As you read the concepts, information, and activities in this manual, keep in mind that many Scouts who start a business to earn the entrepreneurship merit badge will probably operate that business for only one to three months. Some of the areas covered -- especially the financial areas -- may appear a little complicated when you first read about them. However, you will find that these are really not difficult to handle (and, in fact, can be fun) when starting up and running a small business for a short time.

Entrepreneurship is important for continued economic growth and community development. As entrepreneurs improve the quality of the lives of others and of their communities, they improve the quality of their own lives.

We hope you will enjoy your introduction to entrepreneurship and will come to understand and appreciate its potential for developing self-sufficiency and personal fulfillment.

The Entrepreneurship merit badge pamphlet, Supply Division catalog number 35008, is scheduled to be released on January 1, 1998.

Requirements:

  1. In your own words, define entrepreneurship. Explain to your merit badge counselor the role of the entrepreneur in the economy of the United States.
  2. Identify and interview an individual who has started his or her own business. Find out how the entrepreneur got the idea for the business and how the entrepreneur recognized it as a market opportunity. Find out how the entrepreneur raised the capital (money) to start the business. How well is the business doing? Report what you learn.
  3. Do the following:
  1. Write down as many ideas as you can think of for a business. Get ideas from your family and friends. From your list, select three ideas that you believe are the best opportunities for you.
  2. Explain to your counselor why you chose these three ideas rather than the others on your list.
  3. For each of the three ideas that you chose, prepare a list of questions that you would ask potential customers.
  4. For each of your three ideas, informally interview potential customers, using the lists of questions from requirement
  5. Report what you learn.
  6. Using the information you have gathered, choose the one idea that you feel is your best business opportunity.

  1. Conduct a feasibility study of your business idea by doing all of the following (briefly writing or explaining each item to your counselor):
  1. Good or Service
  1. Identify your business goals.
  2. Tell how you will make the good or perform the service. Determine whether it is technically feasible (practical or doable).
  3. Determine how you can make enough of the good or provide enough of the service to meet your business goals. Explain how you will accomplish this.
  4. Identify and describe the potential liability risks of your good or service.
  5. Determine what type of license you might need in order to sell or to make your good or service.

    1. Market
    1. Determine who your customers are. Identify the type of person who would buy your good or service.
    2. Describe the unique benefits of your good or service.
    3. Tell how you will promote and sell your good or service to potential customers.

    1. Finances
    1. If you are selling a good, determine how much it will cost to make one prototype.
    2. Calculate the selling price of your good or service. Explain how you determined the price.
    3. Tell how you will sell your good or service and make a profit.


    1. Personnel
    1. Determine what parts of the business you will handle yourself. Describe your qualifications for the work. Determine how your business responsibilities will fit into your schedule.
    2. Determine whether you will need additional help to operate your business. If you will need help, describe the qualifications your helpers should have and what duties they will perform.
  1. Do TWO of the following:
  1. Sketch a prototype of your good or write a description of your service.
  2. Create the prototype. List all of the materials you used to make your prototype. Calculate the cost of all the materials and labor to compute the total cost of making your prototype.
  3. Design a promotional poster or flier for your good or service.
  4. Project (estimate) your sales through the first three months of operation. Calculate the profit you expect to make.
  1. When you believe that your business idea is feasible, start your business. Show evidence that you started your business (sales receipts, for example, or photos of the good). Report to your counselor the results of your venture.




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