Looking for a lesson that ties Common Core Standards in Reading Informational Text with Economics? This lesson spotlights the life of Milton S. Hershey and allows students to learn about the risks and rewards of entrepreneurship through a biographical sketch of one who experienced many bitter disappointments and sweet successes.


Benefit, Business, Capital, Costs, Entrepreneur, Entrepreneurship, Profit, Risk


  • Describe an entrepreneur.
  • Identify benefits, costs, risks, and rewards involved with entrepreneurship.
  • Reflect on the life of Milton S. Hershey and use this reflection to identify the successes, failures, risks, and rewards of entrepreneurship.





 Tell students that the goal of this "Spotlighting Entrepreneurs" lesson is to help them learn the economics of being an entrepreneur by introducing them to a famous American.

Ask students to describe an entrepreneur. (Allow time for students to share thoughts.) Explain an entrepreneur is a person who accepts the risk of business failure and success.  This person discovers new ways to combine resources to provide goods and services that others value in profitable ways.

Ask students if they have ever thought of starting their own business like a lemonade stand. (Allow students an opportunity to share.) Continue the discussion by asking why someone would want to start his or her own business. (Encourage students to share. Responses may include they: see opportunities to help others, like being their own boss, want to earn profits, like being creative, want to introduce new goods in the marketplace, and want to find ways to reduce costs.)  Ask students if they think it is easy or hard to start a business and explain why. (Allow students to share but many will probably feel it is hard or challenging. Entrepreneurs do not know if (1) they will be successful or fail, (2) they do not know if consumers will value their product, (3) they do not know if others will help them finance their business to produce/provide goods and services, pay expenses, etc.)

Tell students that today they will learn the economics of entrepreneurship by researching the background of a gentleman who overcame many obstacles and persevered, "kept on keeping on," becoming a successful entrepreneur.









Milton Hershey took another risk and started a company to manufacture caramels using the methods he had learned in Denver. He needed more tools and equipment.  Economists call this capital assets used to produce something else.  He looked for financing.  It was difficult given his past failures.





Milton's company was experiencing great success; however he didn't stop and rest. He considered his production alternatives and determined that his resources could best be used in producing chocolates. So, he sold his caramel company for $1,000,000 and shifted his production focus from caramel to chocolate.




In the meantime, Hershey had searched for a suitable location to expand his chocolate company. He decided on Derry Township, Pennsylvania as the perfect location since it was convenient to the port cities that could provide cocoa beans and sugar and was surrounded by dairy farms and a hardworking labor force.  Later, the town would be named Hershey in honor of the town's founder.





(1) What special skills and initiative did Milton Hershey have? [He had a special talent and much experience in candy making and was determined to create the best products for the market. Candy making was his passion. He invested many long hours and persevered through many challenging times.]

(2) What risks did Hershey encounter as an entrepreneur? [He worked long, hard hours. He invested his personal money and financial backing into each business he started. He didn't know if his product would be in demand.]

(3) Entrepreneurs aim at making a profit.  Earlier in the lesson, we learned that profit is the money remaining after expenses have been subtracted from sales. Did Hershey always earn a profit? How do you know? [No, several businesses he started suffered financial losses, which caused him to close those businesses. He did earn a profit in the Lancaster Caramel Company and Hershey Chocolate Company.]

(4) How was Milton Hershey successful? [He earned a profit in his last businesses. He developed a quality product that was affordable to many consumers. He shared his success with his employees. He spent his life doing something he loved.]

(5) If Milton Hershey had not taken the risks to become an entrepreneur, how might your life be different? [We might not have the chocolate products we have today. His long hours and vision made chocolate affordable for us today and provided consumers with a quality product.]




(1) If someone asked you the meaning of the word entrepreneur, what would you say? [An entrepreneur is a person who takes the risks to start a business. This person likes the risks and rewards of being the boss and the opportunities to develop new products for the market.]

(2) What were some of the risks Milton Hershey took as he became an entrepreneur? [Hershey risked his own money and the financial backing of others. He worked many long hours . He had to do a lot of work using his own resources before being able to make his products available in the marketplace.]

(3) What were some of the rewards Hershey experienced? [He created a quality chocolate product for the marketplace. Milton provided chocolate that was affordable for all consumers.  He worked for himself and challenged himself.  Milton established a town to support his workers through the profit he earned.]

(4) Milton Hershey failed in business several times before he became a successful entrepreneur. In order to be successful, an entrepreneur must earn a profit. What does that mean?  [Profit is determined once you know the total sales and the total expenses. An entrepreneur would subtract the expenses from the sales and that shows whether there has been a profit or loss. In order to stay in business, an entrepreneur needs to earn a profit to maintain the equipment, pay employees, pay the costs associated with producing the product, and earning an income.]

(5) What entrepreneurial characteristic do you admire most about Milton Hershey? [Answer may vary. He loved what he did. He provided a quality product for the marketplace. He persevered through many hard times. He was kind to his employees.]





Interview a local entrepreneur.

Each student will interview an entrepreneur and find out the risks and rewards associated with starting a business. Challenge students to find out when and why the entrepreneur decided to start his or her own business. (If it is not easy for students to find entrepreneurs to interview on their own time, invite one to class.)

If I Were an Entrepreneur

Challenge students to develop a plan for a business they would like to start. Have them identify the product they would provide in their business, their target market, and "how" they would get started in business.

Investigate Hershey Chocolate Company.

Find out more about Hershey's Chocolate .


  to lear.