Getting Started

Introduction & Overview

A teenager mows lawns every Saturday and earns enough to buy a new bike. Another designs custom phone cases and sells them at school. A third starts a dog-walking service in the neighborhood. Each of them saw a need, came up with a solution, and took the risk of putting their own time and energy on the line. That is entrepreneurship in action — and it does not require a corner office or a million-dollar idea.

The Entrepreneurship merit badge walks you through every step of launching a real business, from the spark of an idea all the way to a written business plan. Along the way, you will learn how to spot opportunities, talk to real entrepreneurs, analyze a market, crunch the numbers, and promote your product or service. These are skills you will use whether you start a Fortune 500 company, run a side hustle in college, or simply manage your own career.

Then and Now

Then: Entrepreneurship in America goes back to the colonial era, when Benjamin Franklin — printer, inventor, postmaster — embodied the self-made business owner. In the 1800s, entrepreneurs like Madam C.J. Walker built empires from scratch, and young people regularly started businesses as apprentices or farmstead operators. The lemonade stand became a cultural icon of childhood business instinct. Before the internet, launching a company meant renting a physical storefront, printing flyers, and relying on word of mouth.

Now: Today, a teenager can launch a global business from a laptop. Platforms like Etsy, Shopify, and YouTube let young entrepreneurs reach customers worldwide without spending a dime on rent. The gig economy, crowdfunding, and social media marketing have lowered the barriers to entry dramatically. In 2023, the U.S. Small Business Administration reported that small businesses make up 99.9% of all American businesses and employ nearly half the private workforce. The tools have changed, but the core spirit — spotting a need and filling it — remains the same.

Get Ready!

Kinds of Entrepreneurship

Entrepreneurship comes in many forms. Understanding the different types will help you figure out where your own business idea fits.

Product-Based Businesses

These businesses create or sell a physical item — handmade candles, custom T-shirts, birdhouses, baked goods, or 3D-printed accessories. If you like making things with your hands or creating something tangible, a product-based business might be your path. The key challenge is managing materials, production time, and inventory.

Service-Based Businesses

Service businesses sell your time and skills instead of a physical product. Think lawn care, pet sitting, tutoring, photography, or car washing. The startup costs are usually lower because you are the product. The challenge is that your income is limited by the number of hours you can work — unless you hire help.

Digital and Online Businesses

From YouTube channels to app development to selling digital art, online businesses let you reach customers far beyond your neighborhood. The startup costs can be nearly zero, but standing out in a crowded digital marketplace takes creativity and persistence.

Social Entrepreneurship

Social entrepreneurs start businesses that solve a community problem while also generating revenue. A Scout who starts a composting service that donates proceeds to a food bank is a social entrepreneur. These ventures blend the drive to help with the discipline of running a business.

Franchise and Licensing

Some entrepreneurs buy the rights to operate under an established brand (like a fast-food franchise) rather than building something from scratch. While this path is less common for young entrepreneurs, understanding it helps you see the full landscape of business ownership.