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American Business

Scouts BSA · Merit Badge · Careers

Printable worksheet (PDF)

Almost everything you buy, use, or hope to do for a job connects to a business. This badge shows you how businesses start, make money, treat people fairly, and grow. It's a great head start if you ever want to run your own business someday.

Why it's worth it

Every shop, app, and team uniform you see exists because someone figured out how to pay for it, sell it, and keep it running. American Business teaches you to read the numbers behind that: what a profit really is, why one store thrives while another closes, and what owners owe their workers and customers. It's useful whether you want to start your own business, run a club's budget, or just understand the paycheck you'll get from your first job.

Start this week

  1. Pick one business you visit often, like a pizza place, a bike shop, or a grocery store, and write down three questions you have about how it works.
  2. Ask your Scoutmaster for the name of an American Business counselor, and send them a short message with a parent copied to set up a first meeting.
  3. Look at a receipt from a recent purchase. Circle the price, the tax, and anything else on it, and guess how much of that money the store actually keeps.
  4. Read the news with a parent for a few days and save one story about a company hiring, closing, merging, or changing prices.

Requirements · 6

Every official requirement and part, numbered to match Scouting America, in plain language. Sign off against the official wording (opens in a new tab) (updated 2023).

  1. Requirement 1

    Free enterprise, history, and labor

    Tips for this section: Pick a local shop you know and think about how it fits into free enterprise. Ask a grown-up who belongs to a union what it does for its members.

    1. Requirement 1a

      Explain four features of the U.S. free enterprise system, tell how freedom differs from license, and say how the Scout Oath and Law relate to business

    2. Requirement 1b

      Describe the Industrial Revolution and the key developments that began the modern U.S. industrial era; discuss three people who greatly shaped American business or industry and what each did

    3. Requirement 1c

      Name and describe the five primary areas of business to your counselor

    4. Requirement 1d

      Explain the history of U.S. labor unions and why it matters that unions and employers cooperate; name two major unions that exist today

    5. Requirement 1e

      Discuss with your counselor how business affects the economy locally, nationally, and around the world

  2. Requirement 2

    Money, structure, and insurance

    Tips for this section: Ask a parent or family friend to walk you through a simple income statement or balance sheet. Sketch one for a pretend lemonade stand to see how the pieces fit.

    Example for this section: Build an income statement for a pretend car wash: $300 in sales, minus $40 for soap and sponges and $60 for a sign and a hose, equals $200 in profit. Then list one risk, like a rainy weekend, and how insurance or savings could cover a bigger loss.

    1. Requirement 2a

      Explain the three basic financial statements (income statement, balance sheet, statement of cash flows) and discuss with your counselor how each helps leaders decide better

    2. Requirement 2b

      Explain how rising or falling interest rates, taxes, and government spending shift the flow of money to and from companies and industry

    3. Requirement 2c

      Explain how a sole proprietorship, partnership, or LLC raises capital, and explain four ways a corporation raises capital

    4. Requirement 2d

      Name five types of insurance that are useful to a business and describe what each one is for

  3. Requirement 3

    Profit, ethics, and how businesses operate

    Tips for this section: Compare buying the same item online and in a store. Talk about which business seems more honest, careful, or earth-friendly and why.

    Example for this section: Compare a small bakery and a big online seller. The bakery might win on freshness and knowing customers by name; the online seller on price and convenience. Then talk about one ethical choice each faces, like honest ads or how they handle packaging waste.

    1. Requirement 3a

      Explain the role profit plays in business

    2. Requirement 3b

      Describe green marketing and sustainable business practices to your counselor

    3. Requirement 3c

      Explain how ethics affects business decisions

    4. Requirement 3d

      Discuss how running a brick-and-mortar business differs from running an online one

  4. Requirement 4

    Describe what the U.S. Department of Labor does, and discuss two of these with your counselor: FLSA, OSHA, FMLA, or ERISA

    Tip: Look up the Department of Labor online and pick two labor law topics, like child labor or workplace safety, that matter to teens.

    For example: Pick two of the four laws and tie each to teens: the FLSA sets how many hours someone under 16 may work on a school day and which jobs are too dangerous for young workers, and OSHA sets workplace safety rules, like required protective gear. Explain why each rule exists.

  5. Requirement 5

    Pick a business and research how it handles each primary area of business (accounting, finance, economics, marketing, management); share your findings with your counselor

    Tip: Choose a business you can actually learn about, such as a family friend's company or a nearby store. Prepare questions on each area before you talk with them.

    For example: Choose a family-run restaurant and make a one-page chart with five rows: accounting (who tracks money), finance (how they paid to open), economics (what happens when food prices rise), marketing (how people find them), and management (who makes the schedule).

  6. Requirement 6

    Business careers. Choose 1 of 2

    Tips for this section: Make a short list of questions about how the person got started and what a normal day looks like. Take notes so you can share what you learned.

    Example for this section: Interview a business leader with a parent present. Good topics: their first job, a mistake that taught them something, how they decide what to charge, and what a regular Tuesday looks like for them.

    1. Requirement 6a

      Pick one primary area of business and find three careers in it; research the education, training, and experience one of them needs, then discuss it with your counselor and say why it interests you

    2. Requirement 6b

      Interview a business leader about their company and career path, discuss how ethics shapes business decisions, and share what you learned with your counselor

Places to visit

Ask an adult to set it up, and go with your family, den, patrol, or crew.

  • A locally owned shop or restaurant

    Seeing the back room, the storage, and the schedule board shows you how much happens before a customer ever walks in.

    How: Have a parent call during a slow time and ask the owner or manager if they'd give a 20-minute behind-the-scenes look to a Scout working on a merit badge.

  • A chamber of commerce or small business development center

    Their staff help people start businesses every week and can explain business structures, permits, and where new owners find money.

    How: A parent or your counselor can call and ask if someone could meet with a small group of Scouts, or if they host events for young entrepreneurs.

Where it can lead

  • AccountantKeeps a company's financial statements accurate; this badge's balance sheets are the first step.
  • Small business ownerRuns everything from hiring to marketing; many start with a skill they already love.
  • BookkeeperRecords daily income and expenses for businesses; often learned through a certificate or community college course.
  • Marketing specialistFigures out who customers are and how to reach them with ads, social media, and events.
  • Human resources specialistHandles hiring, training, pay, and making sure the business follows labor laws.
  • Insurance agentHelps businesses and families protect themselves against losses like fires and accidents.

Ask yourself

  • What kind of business would you most like to understand from the inside, and why that one?
  • When you hear the word profit, what did you think it meant before this badge, and what do you think now?
  • Which part was hardest to wrap your head around: the numbers, the laws, or the people side of business?
  • If you started a small business next summer, what would it be, and who would you ask for advice?
  • What did you learn about how the businesses in your town treat their workers and customers?

Good questions to ask a business owner or manager

  • How did you decide what to charge for what you sell?
  • What was the hardest month you've had in business, and how did you get through it?
  • What do you look for when you hire someone for their first job?
  • How do you decide whether to sell online, in a store, or both?
  • What do you wish you had learned at my age about money or work?

Helpful reads

For leaders & parents

  • Invite a local business owner to a troop meeting to share how they started and what keeps them going.
  • Encourage scouts to run a small fundraiser and treat it like a real business, with a budget and a final tally.

People & places that can help

Pairs well with

Into this? Explore more

Tips, examples, and questions are ideas from experienced leaders, not extra requirements. Your unit leader or counselor decides when a requirement is complete.