Do The !*& Math

I just finished judging three business plans submitted to a local university contest. It was great fun to read how these young folks want to make money, create a happy world, and save the environment all at the same time. It was discouraging to evaluate the financial analysis.
Each team of three “founders” had at least one graduate with a BS in finance, business, management, or the like. The other two founders were typically experienced in the craft of the business. Not a one of these contestants produced a financial statement indicating an understanding of cash flow, equity, and (gasp) profitability. In one case, the math was even incorrect.
I know we quit creating winners and losers in our kids’ sporting events in order to be able to teach that everyone is a winner. And I know that winning and losing as an adult often times (rightly or wrongly) is based on the accumulation of money. Did we take the “Everyone is a winner” attitude too far and forget to teach them how to count, hoping perhaps that if we de-emphasize money we can all feel like winners in the real world? Are we too focused on sustainability and community to figure out how to make a living in our businesses? Or have we just quit demanding the basics in our college programs?
Small business is the backbone of the American economy. I have spent over thirty years supporting business owners in their quest to create profits and consequently jobs. They are my heroes, and their contribution to our collective well-being is grand in both scale and social value. Somehow the thought of a business actually making money has become a bad thing, with social considerations touted as more important. But society can’t benefit without a strong economy, and a strong economy comes from thriving, profitable business.
Maybe I am unreasonable to expect that a BS in business would confer an understanding of basic business economics. Maybe I should be more supportive of the young entrepreneur’s dream to make the world a better place by offering their talents despite an inevitable failure. It just becomes confusing to me as to where in that process these young dreamers get their “I’m a winner” trophy.
Let’s do all of our kids a favor and teach them how to do the math. In and of itself, the numbers carry no judgment.