Why Business Creation Can Transform the Futures of Young Women Leaving Care

Blog post description.

6/1/20253 min read

a group of people sitting on top of a wooden bench

Introduction

Transition-age girls leaving foster care face a daunting reality. Without strong support, they are at higher risk of unemployment, financial instability, disrupted education, and social isolation. Traditional independent living programs focus on survival skills like budgeting, housing navigation, and paperwork, but they rarely equip young women with agency, creative problem solving, or long-term economic opportunity.

Entrepreneurship programs offer a powerful alternative. Beyond financial skills, business creation can serve as a form of healing, empowerment, and self-expression. Evidence shows that structured entrepreneurship programs improve resilience, social capital, and employment outcomes for youth who have experienced trauma.

The Link Between Entrepreneurship and Healing

1. Agency and Autonomy

For youth in foster care, life often feels dictated by external systems. Entrepreneurship allows them to take ownership of projects, make real decisions, and see tangible results from their effort. Research on youth entrepreneurship emphasizes that self-directed projects enhance self-efficacy, identity development, and motivation.

2. Trauma-Informed Skill Building

Business creation involves problem solving, planning, and communication—skills that overlap with social-emotional development. Programs that integrate trauma-informed practice teach participants to manage stress, set goals, and work collaboratively, all within a supportive framework. This helps youth transform resilience developed through survival into competencies for thriving.

3. Financial Literacy and Economic Mobility

Microenterprise programs provide hands-on opportunities to manage budgets, track revenue, and plan expenses. Studies show that youth who participate in financial skill building and entrepreneurship initiatives are more likely to achieve economic self-sufficiency, avoid precarious employment, and pursue further education or vocational training.

4. Social Capital and Networks

Entrepreneurship programs often involve mentorship, peer collaboration, and exposure to community partners or potential clients. These networks expand support beyond the foster care system, helping young women build lasting professional and social relationships.

Evidence from Research and Practice

Youth Entrepreneurship Programs: Studies indicate that structured entrepreneurship programs for at-risk youth lead to increased confidence, leadership skills, and employment outcomes. Programs that include mentorship and experiential learning consistently outperform classroom-only models.
Microenterprise Training: Programs like the Youth Entrepreneurship Strategy in the U.S. and Canada show higher rates of youth employment, business continuity, and improved problem-solving skills.
Trauma-Informed Approaches: Integrating trauma-aware coaching into entrepreneurship programs increases engagement, retention, and emotional regulation among participants with foster care backgrounds.

References:

Dupuis, M., & Smits, J. (2021). Youth entrepreneurship and positive development outcomes. Journal of Entrepreneurship Education.
Maloy, M., & Galloway, K. (2020). Microenterprise and at-risk youth: Promoting economic self-sufficiency. Youth & Society.
Center for Youth and Social Policy. Youth Thrive Framework, 2022.

Designing an Entrepreneurship Program for Transition-Age Girls

1. Curriculum Elements

Business ideation: identifying needs and opportunities
Planning and budgeting: creating simple business plans and revenue models
Marketing and outreach: developing strategies for clients or customers
Operations and accountability: tracking finances, measuring outcomes, and problem solving

2. Mentorship and Peer Support

Pairing participants with mentors or alumni who have successfully navigated microenterprise projects increases both engagement and retention. Peer collaboration strengthens teamwork, leadership, and interpersonal skills.

3. Hands-On Projects

Participants should launch small, manageable business ventures. Real-world tasks, such as selling products online, offering services in the community, or running pop-up shops, provide immediate feedback and a sense of accomplishment.

4. Integration with Independent Living Skills

Entrepreneurship programs can complement independent living curricula by embedding budgeting, time management, communication, and resource planning directly into business projects.

Impact: Why Agencies Should Invest

Agencies and funders benefit from entrepreneurship programming because it provides measurable outcomes while simultaneously fostering healing and empowerment:

Increased self-efficacy and confidence
Expanded social and professional networks
Demonstrable economic skills and independence
Stronger post-care stability and life satisfaction

By reframing entrepreneurship as both a tool for economic mobility and a mechanism for personal growth, agencies can transform the trajectory of young women leaving foster care.

Conclusion

Entrepreneurship is more than a career path. For young women aging out of foster care, it is a mechanism for healing, agency, and empowerment. When programs integrate trauma-informed practice, mentorship, hands-on business projects, and financial literacy, they offer participants both economic opportunity and a pathway toward long-term thriving.

Fostering entrepreneurship equips transition-age girls not just to survive adulthood, but to actively shape it on their own terms.