Tag Archives: barriers to entry

Lessons in Entrepreneurship: Lemonade Stand Edition

Jennifer Hughes is in charge of issuing permits for Montgomery County, Maryland’s government. She told WUSA, a local tv station, that it is “technically illegal to run even the smallest lemonade stand in the county, but inspectors usually don’t go looking for them.” Some enterprising children recently set up some lemonade stands outside of the US Open, which is played in Montgomery County. They plan to donate the money they make to charity. Officials quickly shut down the stands and fined the childrens’ parents $500.

After a round of bad publicity, the County rescinded the fines. They are also allowing the children to re-open the lemonade stands, so long as they’re on an out-of-the-way road.

It’s good that these children are learning about entrepreneurship and running a business at such a young age. One worries, though, about the lessons Montgomery County is teaching them.