Entrepreneurship Earth: Entrepreneurship for Kids

Entrepreneurship Earth is the planet for builders. Captain Coin teaches entrepreneurship for kids by running a real-feeling business from the first idea to the first profit. Explorers learn about customers, pricing, costs and what it means to own a business.

Entrepreneurship for kids: start with a customer

Every business begins with a problem to solve for customers. For example, thirsty people at a park might want cold lemonade. An entrepreneur is someone who notices that need, makes a plan and takes a risk to start a business. Because customers choose what to buy, listening to them is the first step.

Revenue, costs and profit

Revenue is the money a business takes in from sales. Costs are what the business spends, such as lemons, cups and a sign. Profit is revenue minus costs. If costs are bigger than revenue, the business has a loss. That is why entrepreneurs track every dollar in a simple ledger.

Pricing and inventory

Price is what customers pay. If the price is too high, fewer people buy. On the other hand, if it is too low, the business may not cover its costs. Inventory is the products a business has ready to sell. Too little inventory means missed sales, while too much may go to waste.

Assets, liabilities and ownership

Assets are things a business owns, like a lemonade stand or cash in the bank. Liabilities are what it owes, like a loan from a parent. As businesses grow, they may hire employees and share ownership with partners. The U.S. Small Business Administration offers free guides for adult business owners.

Starting a business and forming an LLC

Ready for the real steps? The lesson How to Start a Business walks through plans, permits and bank accounts, and What Is an LLC? explains business structures for teens.

Practice on Entrepreneurship Earth

Run your own pretend business in Own a Business and try to make a profit five days in a row. Next, budget your earnings with Build a Budget.