Business Courses Give Kids a Leg Up

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The Forbes One

In 1987, Mariotti read the bios of the Forbes 400 and sent letters to 186 of the chief executives asking whether they would be interested in helping low-income children learn how to start their own businesses. He received one reply—from Raymond Chambers, the founder of Wesray Capital in Morristown, N.J. After the two met, Mariotti says Chambers pledged to give him $200,000 to fund one year. "He said, 'Let's see how it goes.'"

Since then, the program has reached more than 150,000 youths in 21 states and trained more than 4,100 certified entrepreneurship teachers. Moreover, NFTE has expanded overseas with programs in 13 countries including Belgium, China, Germany, India, Israel, and South Korea. NFTE now operates on a budget of $15 million and has attracted respected corporate donors such as Microsoft (MSFT) and the Goldman Sachs Foundation.

In NFTE's weekly two-hour classes, fledgling entrepreneurs learn business skills in semester- or year-long courses, after-school programs, and summer camps. Each student comes up with a business plan and participates in organized selling events at his own school. In 1997 a study by Andrew Hahn of the Center for Youth & Communities at Brandeis University found that 33% of the students who completed the NFTE program went on to start their own small businesses and 70% finished secondary school.

Malik Armstead completed the NFTE program in 1988 as a 17-year-old in Philadelphia, at the suggestion of one of his guidance counselors. "The program allowed me use both sides of my brain—the creative and the analytical," says Armstead, who read The Wall Street Journal in class and learned how to read balance sheets and income statements, how stock prices are determined, and how to develop a business plan. "I felt pretty inspired. I felt like a business student."

Giving Kids More Options

Moreover, he caught the entrepreneurial bug. Following the program, Armstead dabbled in a number of small businesses such as selling soda and candy in his high school. While at Morehouse College, he sold hand-painted jeans and T-shirts. After graduating, he got a job at Morgan Stanley (MS) in New York but says, "My dream was to own my own business."

In 1996 he opened a small takeout restaurant in Brooklyn, N.Y., which eventually grew into a successful catering business, restaurant, and bar called the Five Spot, which also offers live entertainment. Armstead says one of the most gratifying parts of owning his own business is his ability to give back to his community. "One of the biggest impacts from a social perspective is that we offer training and jobs to inner-city youth."

Like many participants, Armstead credits NFTE with changing his life. "It is just incredible. I thought you had to know someone to get in a business or have a ton of money. But [I learned] you can start on a micro-level and grow it from there. NFTE gets kids focused on creating their own businesses rather than just getting a job and working for someone. It gives them more options in life."

Perman is a staff writer for BusinessWeek.com in New York.