$15,000 for business beginners

By MATHEW DEARNALEY

Northland youngsters facing daunting career choices will be invited to become budding business entrepreneurs straight from school.

They will be offered interest-free loans of up to $15,000 if they have already demonstrated their business acumen in the classroom, and can convince a panel of experts that they have what it takes to succeed past the schoolgate.

The Enterprise New Zealand Trust already promotes courses in schools throughout the country to teach economic literacy and an understanding of how businesses work.

Its young enterprise scheme, paid by corporates, also encourages students to set up businesses in school time by forming business plans and issuing shares before manufacturing and marketing products.

Now the organisation wants to extend the concept into the real world, in partnership with the Northland Grow trust, a regional council offshoot financed by the proceeds of port company share sales.

It is also holding discussions with agencies such as Te Puni Kokiri and the Poutama Trust to talent-spot the most enterprising youngsters and offer them loans to carry on their businesses after leaving school.

And it is considering applying for money from the Government's new development agency, Industry New Zealand.

The loans will be for two years, with the money to be repaid into a pool to support succeeding waves of young entrepreneurs.

Enterprise New Zealand Trust executive director Ken Baker says that Northland, despite its many economic and social difficulties, is already leading the country in its support for school-based courses.

"The attitude is there - the region and its communities have a positive attitude towards making Northland grow," he says.

"The Government talks about job creation but why not provide another option? These kids have done the hard yards, so why not tap into that talent? We do it with rugby players so self-employment should also be an option.

"They have shown their products are viable so why not let them create their own jobs?"

Mr Baker, a former teacher and economic historian who has also served as a finance industry spokesman, says this has to be a surer recipe for success than waiting for people in their 40s to be made redundant before starting businesses which are often doomed to fail.

He hopes to have the scheme ready, even if only in a limited form, for this year's crop of school-leavers, whether or not there are any takers in the first round.

His trust is also extending its school courses in Northland to the primary level.

On the risk of turning children into little mercenaries, he says primary schools which have embraced enterprise teaching elsewhere in New Zealand have reported a greater cooperative spirit and less bullying.

Youngsters use unlimited imagination to dream up products such as video-simulated overseas trips to sell for mock money, which can in turn be used to buy other goods at school market days.

Products developed by Northland secondary students have ranged from tourism CD-Roms at Springbank School in Kerikeri to "Bust'd Out" beanies and seventh-form leaving packs at Tikipunga High School in Whangarei.

Mr Baker says there is nothing elitist about enterprise courses, with almost 70 per cent of secondary schools using at least one of the trust's programmes.

Maori pupils account for 30 per cent of those in primary school courses and the Poutama Trust, with a Maori development injection of $28 million, is a big sponsor.

Winners of Poutama's young Maori enterprise awards have included students at Te Rere Kohu School, at East Cape. They grew herbal plants and then sold them, with instruction books on how to turn them into traditional Maori medicines.

Poutama spokeswoman Jeanna McRae says there has to be more participation so young Maori can develop their entrepreneurial talents and "go out there and do it for themselves."

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