Most kids naturally seem to have a few basic defensive skills, even if they were never formally taught. Once you get possession, the other side is going to try to take the ball back. Most folks refer to them as receiving and shielding skills. Once they realize that they have the skills to keep an opponent from stealing the ball, they will gain the confidence to lift their heads up and find another player to pass off to. Until your players can hold a ball 1v1 in a grid about 10 feet by 10 feet for a count of around 7-8, they are not going to have enough confidence to do very well on the field.
Different coaches have different philosophies on how to teach dribbling.
This approach works for some kids who are naturally graceful and quick. This is a great warm-up. But don't put the cart before the horse. Convince them that they can dribble and the fancy moves will take care of themselves. The next thing to learn is basic defense including simple delay as well as ball-stealing.