Entrepreneurship · Grade 12

Active learning ideas

Start-up Costs and Funding Sources

Financial planning is often the most intimidating part of entrepreneurship for students. This topic demystifies the process by focusing on start-up costs and the various ways to fund a new venture in Canada. Students learn to distinguish between capital expenditures (one-time costs like equipment) and operating expenses (ongoing costs like rent). They also explore the 'funding ladder,' from personal savings and bootstrapping to government grants, bank loans, and angel investors.

• Ontario Curriculum Expectations
• Expectation D1.1: Estimate the start-up costs for a proposed venture.
• Expectation D1.3: Evaluate various sources of financing available to Canadian entrepreneurs.

• 30–75 min
• Pairs → Whole Class
• 3 activities

Activity 01

• Stations Rotation
• 60 min · Small Groups

Stations Rotation: The Funding Fair

Set up stations representing different funders: a Bank Manager, an Angel Investor, a Government Grant Officer, and a 'Family & Friends' group. Students rotate through, learning the specific requirements and 'cost' of money from each source.

What are the typical start-up costs for a new business?

• Remember
• Understand
• Apply
• Analyze
• Self-Management
• Relationship Skills

Activity 02

• Inquiry Circle
• 75 min · Small Groups

Inquiry Circle: Start-up Costing

Groups are given a business type (e.g., a food truck, a graphic design firm). They must use real websites to find the actual costs for equipment, licenses, and initial inventory, creating a detailed 'Day 1' budget.

How do entrepreneurs secure funding in Canada?

• Analyze
• Evaluate
• Create
• Self-Management
• Self-Awareness

Activity 03

• Think-Pair-Share
• 30 min · Pairs

Think-Pair-Share: Bootstrapping vs. Investment

Students read a short case study of a founder who chose to grow slowly without outside money. They individually list the pros and cons, then pair up to decide if they would make the same choice for their own venture.

What are the pros and cons of equity versus debt financing?

• Understand
• Apply
• Analyze
• Self-Awareness
• Relationship Skills

A few notes on teaching this unit

---

Watch Out for These Misconceptions

• You need a bank loan to start any business.

  Many businesses start through 'bootstrapping' (using personal savings and early sales). A 'Bootstrapping Challenge' where students must plan a launch with $0 can help them see the power of sweat equity.

• Investors just give you 'free' money.

  Equity investment means giving up ownership and control, while loans require repayment with interest. Using a 'Term Sheet' simulation helps students understand the long-term costs of different funding types.

---

Methods used in this brief

• Stations Rotation
• Inquiry Circle
• Think-Pair-Share