Entrepreneurship: Business Ownership and Community Economic Power

Aurora Entrepreneurship standard: Business is not just about individual profit. The strongest businesses in African American history were built on community interdependence — customers, suppliers, workers, and owners from the same community, creating a closed economic loop. We study entrepreneurship through this lens: What does the business produce? Who benefits? Who builds wealth?

Grade Band: K–2 — What Is a Business?

A product is something you can hold and take home. A service is something someone does for you. Draw a line connecting each business to the right type:

You are setting up a small stand at the community market. Answer these questions:

What will you need to make or get it? _______________________________________________

Grade Band: 3–5 — The Business Plan and Black Wall Street

Business	Type
A bakery that sells bread	Product / Service (circle one for each)
A haircut shop
A bookstore
A lawn-mowing service	Product / Service
A lemonade stand

Black Wall Street — Greenwood District, Tulsa, Oklahoma — 1906–1921

Documented community of 10,000+ residents | Over 300 Black-owned businesses

Documented achievement: The Greenwood District of Tulsa, Oklahoma, was documented as one of the most prosperous Black communities in American history. Residents called it "Black Wall Street." Documented businesses included grocery stores, hotels, law offices, doctor offices, a hospital, a library, a school, two newspapers, and a bus system — all Black-owned. Money spent in the community circulated among Black-owned businesses before leaving the district. Economic historians documented that one dollar circulated in the Greenwood community approximately 36 times before leaving — compared to once or twice in other communities.

Primary source: Tulsa Race Massacre Commission Report (2001), Oklahoma Commission to Study the Tulsa Race Riot of 1921; Library of Congress American Memory Project.

What does "one dollar circulating 36 times" mean for a community's economic strength?

Create a simple business plan for a product or service your community actually needs:

Grade Band: 6–8 — Market Research, Pricing, and Co-op Structure

Business Plan Section	Your Answer
Business name:
What do you sell? (describe the product or service)
Who is your customer?
What does it cost you to make/do it? (materials, time, supplies)
What will you charge?
Profit per sale = Price - Cost = $_______ - $_______ = $_______
How will people find out about your business?

Key idea: A cooperative business (co-op) is owned and democratically controlled by its members — workers, customers, or producers. Profits are distributed among members rather than going to outside shareholders. Worker co-ops are one of the oldest models of community economic ownership.

Before starting a business, entrepreneurs research the market. Design a 5-question survey to find out whether your community needs a new grocery store:

Who would you survey? How many people? _______________________________________________

How would you make sure your survey represents the whole community, not just your friends?

Cost-plus pricing: Price = Cost of production + desired profit margin
Example: It costs $4 to make one jar of hot sauce (ingredients + jar + label). You want a 50% margin. Price = $4 + ($4 × 0.50) = $4 + $2 = $6.00

Competitive pricing: Research what competitors charge and price above, at, or below their price based on your positioning.

Value-based pricing: Charge based on the value to the customer, not the cost to produce. A wedding cake might cost $60 to make but sell for $400 because of the occasion's value to the buyer.

Your community co-op bakes and sells bread. Each loaf costs $2.50 to produce. The grocery store nearby charges $4.00. The artisan bakery charges $7.00. What would you charge, and why?

Which model would better serve a community of 50 families who want to run a grocery store together? Explain your reasoning using at least two features from the table:

Grade Band: 9–12 — Full Business Plan and Pitch

Feature	Worker Co-op	Traditional Corporation
Who owns it?	Workers / members	Shareholders
How are decisions made?	One member, one vote	Board of directors (elected by shares)
Where do profits go?	Distributed to members	Dividends to shareholders + reinvestment
Goal	Member benefit + community	Shareholder return
Example	REI, Ocean Spray, Mondragon	Amazon, Walmart, Target

Key idea: A business entity structure determines how a business is owned, taxed, and how liability is handled. Common structures: Sole Proprietorship, LLC (Limited Liability Company), S-Corp, C-Corp, and Cooperative. Each has different legal and tax implications. For community-focused businesses, the LLC and worker cooperative are the most commonly chosen.

Section	Your Content
1. Executive Summary What is the business? What problem does it solve?
2. Market Analysis Who are your customers? What is the market size? Who are competitors?
3. Product/Service Description Exactly what will you sell? What makes it different?
4. Pricing and Revenue Model How much will you charge? Show the math (cost + margin = price).
5. Startup Costs What do you need to buy or set up before your first sale? Total: $_______
6. Break-Even Analysis How many units must you sell to cover all costs? Show calculations.
7. Legal Structure Will you form an LLC, co-op, or other structure? Why?
8. Community Impact How does this business benefit your community economically?

Entrepreneurship: Building Businesses That Build Communities

Grade Band: K–2 — What Is a Business?

Grade Band: 3–5 — The Business Plan and Black Wall Street

Grade Band: 6–8 — Market Research, Pricing, and Co-op Structure

Grade Band: 9–12 — Full Business Plan and Pitch