Description: An opinion piece in the Globe and Mail this past week offered that cutting student debt may be an excellent policy alternative for generating entrepreneurship in Canada. Over the past few decades, government support for higher education has declined. Combine this with higher tuition and it means students are graduating with higher debt loads. It’s difficult to start a business after graduation if you’re burdened with student debt.
Date: November 4, 2020
1) Are you going to be carrying a student loan when you graduate? How will it impact your decisions?
2) What do you think? Will addressing student debt promote entrepreneurship and economic growth?
3) The story of True Buch Kombucha featured in the opening of Chapter Three in Wiley’s Financial Accounting: Tools for Business Decision-Making discusses the entrepreneurial adventures of Conrad and Louisa Ferrel. What is one important lesson future entrepreneurs can learn from these experiences?
Justin Vogels Chloe Viola Roland Von Harpe
1- Our group was split. Some of us will be graduating with student debt but one of us has a parent that works for mount Allison so does not have to pay tuition and also will be graduating without debt. For the person without student debt they said that it gives them freedom to go pursue grad school without the burden of student debts. The other student said that they are un college so could immediately start teaching classes or flying to receive income and start paying off their debt.
2- We agree with the article in saying that having student debt limits the amount of risks that people will be willing to take after they graduate. Being an entrepreneur is definitely a big risk, so people will be scared away from it by this having large student loan debts.
3- Maintain a high level of organization and stay on top of our books. Be very conscience of your costs, as this is the most important thing that will cause your new business to succeed.
Keara Mahaney, Xinyi Li, Liv Lopez
1. All of our group members will not carry student loan debt upon graduation. Because of this, it will allow us to spend more time applying for jobs well suited for our degree than worrying about having to pay off the loan.
2. We think addressing student debt will promote economic growth. The purpose of higher education can be many things but putting a student graduating from university in a considerable amount of debt should not be one of them. The burden of having debt can change the individual’s preferences towards risks. When one of the key components of entrepreneurial spirit is risk-loving. An average worker/entrepreneur performs better at work when under less pressure. It will also encourage more people to get higher education. Student debt is a big reason many people don’t go to university or college. One of the factors that promote economic growth is the education of the workforce.
3. In the story of True Kombucha, the owner’s top priority was keeping good accounts. An important lesson for future entrepreneurs is to keep your books organized and current. It is important to know where things stand in terms of profit margins and cost of goods sold. You also need good quality statements to provide to banks if you want to get good loans.
Pushkaraj Jadhav, Su Young Kwon, Justin Leblanc
1. Our group will not be graduating with student loan debts which definitely prevents us from having a huge burden while making decisions for post-graduate education or applying for jobs that are well suited for our degree.
2. We completely agree with the article, that not having a student loan debt will promote an entrepreneurial drive in students and lead to economic growth. Starting a business is generally risky and involves an investment of time and personal money. Having a student loan debt will make it difficult for students to make that required investment and will discourage them from approaching entrepreneurship. Removing this burden off students will reduce expenses considerably and it will be easier for students to step into the business sector.
3) A lesson for future entrepreneurs from the True Kombucha story, is to keep their accounts organized and current. It’s very important to understand where the company stands in terms of costs and expenses, and the amount of profit made. Keeping good accounts can help you control your costs and that’s crucial for a business to succeed.