Raising capital is always an important startup issue for many student entrepreneurs. I just came across this recent press release that could be of interest to student entrepreneurs looking to finance their businesses. If anyone ends up applying, let us know and we can write a follow up entry!

Institute for Entrepreneurship Engages Investment Banker to Raise $250 Million in Grants for Student-Initiated Businesses

PHOENIX — (BUSINESS WIRE) – The Institute for Entrepreneurship, an organization that facilitates the development of successful entrepreneurs through education, has engaged an investment banker to raise $250 million in capital, which will be used to fund small businesses created by college students.

Access to the University Entrepreneur Fund, is being facilitated through a private placement memorandum. Wayne Taylor, chief executive of Dream Dragon Productions, will assist the IfE.

“There has never been a fund, especially of this magnitude, which is geared toward the young entrepreneur,” said Peter J. Burns, III, founder of the IfE. “With a pot full of significant cash, administered by seasoned entrepreneurs and investors, we have an opportunity to literally change the face of America’s education and our economy, at the same time.”

The announcement is especially significant for colleges and universities, since the students will be selected for funding only from schools that offer a free-standing College of Entrepreneurship program.

One school, thus far, has licensed a College of Entrepreneurship from the IfE – Grand Canyon University in Phoenix, Arizona. Get more information about GCU here.

“GCU is the first school in the country that can reap the benefits of this funding windfall,” said Burns. “As a participating school, it will receive 25 percent of those student businesses that start at either the undergraduate Bachelors of Entrepreneurship level or the soon-to-be launched certificate-granting Executive Education in Entrepreneurship.”

About the Institute for Entrepreneurship

The Institute for Entrepreneurship helps bridge the gap between a great business idea and successfully operating in the business world. The founders of the Institute are revolutionizing entrepreneurial education, wedded to the belief that every person on the planet is a budding entrepreneur. The Institute also believes that it is up to existing entrepreneurs to facilitate the transformation of the next generation of emerging entrepreneurs. While there are some schools that purport to teach students some of the skills needed to start a business, little or no help is offered to assist the student in actually starting a real business upon graduation. Most business schools instruct students in theory and prepare graduates for on-the-job-training at existing companies. Our founders knew that what is needed is a program that prepares students to be entrepreneurs and start their own businesses upon graduation.

Evan Carmichael

I came across this press release for a competition that young entrepreneurs can benefit from if you are you looking for startup capital:

College and high school students are invited to compete for up to $7,500 in start-up capital in an annual business-plan competition co-sponsored by BizFilings and the National Federation of Independent Business, organizers said Wednesday.

Each entry must include a detailed plan, overview, and profile of an existing business, along with a market analysis, sales and marketing strategies, and a financial analysis.

The competition, which runs until May 1, is aimed at boosting entrepreneurial activity and expertise among college and high school students, organizers said.

“No matter what the outcome, students will gain valuable insights from simply participating in the competition,” said Troy Janisch, marketing director at BizFilings, a Madison, Wis.-based service that helps incorporate businesses. “Drafting a business plan is the first, and possibly most important step toward starting a successful business.”

Good luck and let us know if you decide to enter!

Evan Carmichael

The Oxford Mail recently wrote about a group of high school students who look it upon themselves to start a business during their regular academic year. The company was called Bizee Beads and the students made and sold items such as greeting cards and jewelry. They have generated 500 pounds so far.

While they may not be the most lucrative opportunities for students for immediate financial success, my own experience with Junior Achievement programs has been that getting the hands on entrepreneurial environment early on in life teaches you important lessons for when you go out and start your own business. You have the experience of creating a business plan, managing a team, and selling a product or service and you can do it all in a relatively risk-free environment with the advice of teachers and local business experts.

I have always said that my 3 years at Junior Achievement taught me more about running a business than all the courses I took in school and University because it was learn by doing, not by reading a textbook.

Have any of you had similar experiences?

Evan Carmichael

A question that many student entrepreneurs face is “Should I drop out of school to launch my business?” Let’s face it, school does take up a lot of time that could be spent developing and growing a business? So what are the pros and cons of dropping out to focus full time on entrepreneurship? I found a great post that discussed this topic and highlighted some famous young entrepreneurs who made the leap.

The Pros:

• You can do what you want.
  Everything that got you detention in school will get you funding in Silicon Valley. If you’re a non-conformist, you may have the right profile.
• You’ll get an alternative education.
  Young people should seize the fleeting opportunity to get a different kind of education.
• You’ll use somebody else’s money.
  You are building a resume and a company as well as creating valuable experiences on the dime of venture capitalists.
• You’re free to mark your own path.
  The journey is the reward, especially for “outcasts”, “geeks” and “nerds” who were ostracized in school and for free thinkers who can’t be strapped down by structure and a conventional career path.
• You may get your just rewards.
  Silicon Valley is a complete meritocracy – are you bright and do you work hard? Do you have innovative ideas? Then you may have a shot.
• You have more energy to work.
  Your youthful energy is an advantage.

The Cons

• You won’t be well rounded.
  You’ll miss out on teenage life that helps round you out as a person as your peers will be on a different wavelength than you. Plus, you’ll need to work harder without a diploma and a formal education.
• You’ll be lonely.
  You can always go back to school, but your social life won’t be the same as your old friends move on. Could loneliness be a part of this experience? Some successful dropouts say so.
• You can fail.
  The risks are as high as the potential rewards. Experiences of Valley dropouts vary significantly. So just because you decided to spend your time pursuing a dream doesn’t mean you’re guaranteed to do well. Not everyone can win the startup lotto.
• You may not be well adjusted.
  Young people thrust in a high pressure situation are bound to be shell shocked at a tender age. Even success can be too much to handle. I would liken this situation to young celebrities who face sudden fame, fortune and responsibility. Still, it could be a good problem to have.
• There’s a glass ceiling.
  In the Valley, young people are frequently lured by high starting salaries and low barriers to entry, but as they climb the corporate ladder, there’s a ceiling often hit by those who don’t hold degrees. There’s also that matter of proving yourself to skeptics when you don’t have that diploma.
• It takes a lot of sacrifice.
  There’s much sacrifice and determination involved in nurturing an entrepreneurial vision: the cramped rooms, long hours hunched over a monitor, all nighters and fast food. Sure you’ll probably have some of that in an educational setting, but not to the same degree nor at the same pace. At this time in a student’s life, is it worth choosing over high school or college? What, no frat houses, sorority clubs, partying?

What do you think? Is it worth dropping out of school to launch your business full time?

Evan Carmichael

After launching our Review Our Blog initiative yesterday I’m pleased to announce that we already have our first review from David B. Bohl who posted in his blog: Kuddos to Youngentrepreneur.

David is a small business coach who helps inspire others to define and create well-balanced, fulfilled lives and lifestyles. You can visit his website at http://reflectionscoachingllc.com/.

Thanks for the review David! If you are interested in doing a review, check out our Review Our Blog initiative for instructions.

Evan Carmichael

Here is a cool story about a pair of young entrepreneurs featured in the Portsmouth Herald.

Cory Nadilo (23) and his younger sister Kirby set up their own restaurant, Wings Your Way, in August of 2005. After a year and a half in operation the restaurant has become a hot spot for local university students and residents.

Cory graduated from Quinnipiac University with a degree in entrepreneurship and small business management (Can colleges and universities “teach” entrepreneurship?). Instead of getting a corporate job he went into business for himself launching Wings Your Way and has not looked back.

On top of the stress of managing his own business Cory also has to deal with the pacemaker that he uses to run his heart. Without the pacemaker, his heart would not beat at a proper rate. Along with most successful entrepreneurs, Cory does not focus on the negatives. “There are no limitations, except maybe I’ll beep when going through a metal detector,” he said.

How They Run Their Business

Cory and Kirby believe that having a strong team is critical to success. They also believe in working with family. In their operation, Cory runs the day to day of the business, Kirby handles the marketing and promotion, and their father, Rudy, deals with the back of the business. Together they form a winning combination that works. “We’re not a family business in the sense of a normal family business. There are no family politics involved. When we’re here, I’m in charge and everybody knows their role.”

The company now has 25 employees and is planning an expansion to create 15 additional restaurants through a franchising model.

If you have any experiences working in a business with family, I would love to hear from you in your comments!

Evan Carmichael

Do you want to get a direct link and free promotion from one of the most popular websites for entrepreneurs in the world?

If you write a review of the Young Entrepreneur Blog on your blog and include a link to us, we will show a snapshot of your website in our blog and link back to your site.

Simply post the review in your blog and email us at emailbizguy@hotmail.com to let us know – then we will put up the snapshot of your website and link to you!

Evan Carmichael

In continuing today’s theme on social entrepreneurship, I came across a great list of 58 ways small businesses can save the world. Here are the top 20:

1. Changing the office incandescent light bulbs to more energy efficient ones.
2. Recycling internal paper, by printing on both sides
3. Use email, not couriers
4. Encourage suppliers to invoice you electronically
5. Buy fair trade products (such as the office coffee)
6. Encouraging staff to catch public transport (trains and buses) to work if possible
7. Minimising the use of air conditioners wherever possible, or at least turn the thermostat up a degree.
8. Sponsor a child or family
9. Leaving lights and equipment off when we can
10. Ensuring all monitors are switched off when not in use
11. Organising to have a recycling bin for paper waste to be picked up by council
12. Buy organic fruit for staff snacks
13. Use mulch in the office garden
14. Use waterless urinals and dual flush toilets
15. Read online news instead of print newspapers
16. Printing stationery on recycled paper
17. Use cold water instead of hot
18. Take unwanted, re-usable items to your local charity shop
19. Stick a ‘No Junk Mail’ sign on your letterbox
20. Buy rechargable batteries for all electronic devices

Do you have any additional suggestions for how small business owners can make the world a better place?

Evan Carmichael

As a young entrepreneur from a developed country I’ve been invited to speak at a number of different forums and conferences to help young business owners from developing countries get their companies off the ground.

Brunei, for example, is a country that is heavily dependent on its oil reserves. They are actively trying to promote their youth to start new businesses as a way to achieve sustainability once their oil runs out.

There is also a rising trend of young entrepreneurs who start businesses not to make money but to solve a major social problem. It has never been easier to tap into resources and networks to make these non profits successful.

As the Imagine Blog points out:

The recent growth of social venture capital, micro-finance, non-profit tech companies, and other forms of social entrepreneurship was opening up exciting new opportunities for young people to do well and do good at the same time.

Traditionally corporations have focused on generating as much profits as possible. Are today’s young entrepreneurs going to be the ones who can successfully mix social responsibility and profit making?

Evan Carmichael

“I always wanted to do something to make a difference.”

Growing Up

Howard Schultz was born to a blue-collar family from Brooklyn in 1953. At the age of seven, when his father lost his job due to a broken ankle at a time when disability assistance was uncommon, Schultz experienced the difficulties of poverty and hunger.

He worked hard at sports and got himself a scholarship to Northern Michigan University. He earned his degree in business and graduated in 1975. An outstanding employee in his first job working in marketing for Xerox, Schultz was headhunted by the Swedish company Perstorp AB. He became the houseware firm’s vice president at twenty-six and oversaw their American subsidiary, Hammerplast USA.

As with Ray Kroc, founder of McDonald’s, who took an interest in the original McDonald’s buying up so many milkshake mixers, Schultz’s interest was piqued by the large number of espresso machines that a company called Starbucks was buying from Hammerplast. He got on a plane and flew to Seattle to find out more.

Starting the Business
Gerald Baldwin and Gordon Bowker, the founders of Starbucks, had opened their first store in 1971 close to the eclectic Pike Street Market. They sold gourmet coffee beans and sundry coffee-related accessories. When Schultz met them, Baldwin and Bowker were operating four stores. They asked Schultz to join them as a part owner to fill in the gaps of their knowledge of business with his deft understanding of marketing.