An entrepreneur is a person who undertakes an innovation in economics and business expertise in an effort to change modernism into financial goods. Entrepreneurship results in invigorating an organization or may result into a new association. Currently, the most common type of entrepreneurship involves starting a new business which includes the political and social forms of free enterprise activity (Hess 93). The main source of finance available to an entrepreneur is personal saving, bank loan, family and friends and credit cards. The entrepreneurship actions are significantly different depending on the inventiveness and organization concerned. They range from small projects to higher project that enhance creating job security for the jobless. High value entrepreneurial endeavor seek venture capital inorder to uplift the capital for the business. For instance an investor in high value entrepreneurial business looks for a return of approximately 20-30 percent or more and an all-embracing participation in business (Kuratko 234). The administration agencies, Non- Governmental Organizations (NGOs), industry incubators and science parks are among the organizations that are involved in supporting the entrepreneurship. Recently, entrepreneurship has been widespread to include aspects not related to business development that lead to business initiatives. Peter Drucker and Frank Knight argued that entrepreneurship is all about taking risks (94). The behavior reflects on the kind of individual willing to put their career and pecuniary security in the business, take risks on their wealth and time placed on uncertainty. These uncertainties include ambiguity which cannot be calculated statically, risk that can be measurable, and true uncertainty that is impossible to predict and estimate (Skloot 123).
In American life an entrepreneur is regarded as an important player in the business society and as a major tool in economic growth and job creation. Entrepreneurship is an activity that involves developing economic growth in developing and developed countries. It’s created wealth and promotes capital formation in the country by reducing unemployment and poverty level. In addition, entrepreneurship is the process of discovering prospects in the market and arranging resources necessary based on a business idea. Thus, entrepreneurship is the ability to take risk independently while making profit in the market.
Entrepreneurial Culture in America
United States remains the most entrepreneurial country all over the world. Research showed that from 1996 to 2004 America created an average of fifty five thousand small businesses monthly that grew at a high rate. For instance, Wal-Mart is one of the biggest companies that was founded in 1962 and did not sell its shares to the public until a decade later. Cultural entrepreneurship in America provides an interesting prospective of high value culture and foundation institutes. The American economy is an engine of creation of wealth all over the world and its economy has led to long-term growth rates and average living as well catering for 1/3 of the global economy. Entrepreneurship in American has been the major booster of American flexibility and dynamism in the economy (Skloot 84). The United States has been able to boost its entrepreneurial activity through creation of a culture that fosters experimentation and taking of risks, availability of capital for new businesses, and a regulatory structure for controlling entrepreneurship. America leads all the industrial economies in the globe with a higher percentage of American adults being entrepreneurs. A survey carried out by the Global Entrepreneurship Monitor (GEM) in 2005 indicated that approximately twenty three million populaces were involved in entrepreneurship with 12.4% of the population being adults.
Entrepreneurship can be classified into; high expectation and lifestyle. In the lifestyle category are the majority who come up with ideas to employ themselves while the high expectation category has those that become entrepreneurs to help in expansion of companies (Lerner, Hardymon and Leamon 89). A research carried out by Global Entrepreneurship Monitor showed that 2.9 million of the American population is carrying out high expectation form of entrepreneurship. Entrepreneurship in America is aimed at creating job opportunity, innovation and productivity growth (Rowh 68). New companies in the United States create new job in their respective states, for instance between 1980 to 2001 research shows that new jobs were attributed to the young firms (with a maximum of 5 years in business). While the mature companies with five years and above reduced their number of employees. Research shows that in the last 2 decades a small percentage of the high expectation entrepreneurs had created 80% of the available job opportunities. Productivity growth in respective states happens when old firms are destroyed and new firms are opened (Furchtgott, Bruce and Even 56). The entrepreneur is the cause of the growing productivity around the United States. In the United States 25% of the most productive companies grow faster than the less productive this is in contrast with the European setup where the less productive companies grow faster (Kuratko 43). The United States’ laws that are entitled to the labor flexibility, insolvency and completion allow the less productive companies to fail and hence leading to their low growth. Technological advancement in the United States has led to increased innovation. Small firms in America are the source of the changing innovation since the large firms have been noted to be depending on the small firm for proposals and technologies.
Who are the entrepreneurs in the United States?
The immigrants and American women have a higher level of entrepreneurial engagement than the non-immigrants. However, American men are more entrepreneurial than men from other countries apart from those from Canada. In 2005, it was approximated that 350 out of a hundred thousand migrants started new jobs per every month while in the same year only two hundred and eighty in 100,000 residents. In the United States less than 12% of the populaces are the immigrants and in the past fifteen years 25% of new open public companies and 47% of private companies were done by foreigners. About 7.7 million of the women owned business in the United States generate 1.1 trillion dollars annually (Cuban and Shapiro 128). In the past decade it has been noted that women-owned companies are growing two times faster than other firms in the United States. 20% of the women owned companies are owned by black women (Sbragia 45). This shows that the foreigners and Black American women are the most entrepreneurial people in the United States and hence contributing to the productive growth of the country. The definitive success of business entrepreneurship in a new business depends on a supportive trade environment and access to risk principal. In the United States they have adapted legal and regulatory frameworks which include patent protection, policies on technology and contract enforcement (Sbragia 23). The USA is ranked as the third country in the world business-wise due to its entrepreneurship. United States have a capital risk infrastructure, more money and investors that help to enhance entrepreneurship. On the other hand, entrepreneurship in the United States is supported by the funds that are easily accessible to all the investors (Hess 44).
Intensifying global business, nurturing start-ups and by-products, advancement in technology, increased number of skilled personnel, and emerging opportunities in the markets has been the key contributor of investments in the United States as the government tries to promote equal entrepreneurial opportunities for all. Recent research by the Small Business Administration found that most entrepreneurial areas in the United States had 125% more employment, 109% more productivity and 58% more salary growth than in the less entrepreneurial regions (Lerner, Hardymon and Leamon 67).
Significance of Entrepreneurship in the United States
In the United States there is a close relation between the industries and the universities. Universities equip the investor with adequate knowledge and technological skills while the industries provide access to venture capital and business incubators that help in fostering entrepreneurship. For instance, when Google came into public, Stanford University expanded by around 200 million dollars and was focusing on expanding entrepreneurship to educate the investors (Kelly 107). This shows that entrepreneurship helps to foster growth in the education sector.
The presence of an immigrant policy in the US has boosted the expansion of entrepreneurship in the states as foreigners are good entrepreneurs. Vivek Wadhwa from Duke University carried out a survey indicating that fifty two percent upcoming business ideas in the Silicon Valley were discovered by immigrants about 5 years ago. In addition, the American entrepreneur has always been interested in teaching them a new thing so as to improve the existing product in the market (Watkins, Edwards and Thakrar 99). American has been facing frequent threats to its extraordinary entrepreneurship ecology such as the problem of patent trolls. However, the /11 attacks by terrorist have made the United States to be more strict in terms of its immigration policy. For instance, at the beginning of 2011 one million immigrants were still waiting to be issued with citizenship of the United States. Out of the eighty five thousand visas that are issued to skilled worker required in the market annually, only 10000 visas can be applied for. Despite this, America plays an essential role in spreading of entrepreneurial culture all over the world. Most people admire its capacity to create world- dynamic entrepreneurships such as expensive universities, Silicon Valley cluster and Bill Gates (Weinstein 94).
America is using most of its financial wealth in developing entrepreneurship in the country. For instance Kauffman Foundation spends 90 million dollars annually from assets of 2.1 million U.S dollars to improve entrepreneurship by sponsoring academic research and global week entrepreneurship and in training entrepreneurs.
Social Entrepreneurship in America
Social entrepreneurs are individuals who help in solving societal problem such as poor nutrition, poverty and pollution. Social entrepreneurship is the most promising entrepreneurship in the United States (Druker 89). They are thirty thousand such growing enterprises around the United States and they bring revenue of forty billion U.S. dollars. The social entrepreneur has caught the attention of business enterprise capitalists such as Acumen Fund, an unprofitable invests that tries to alleviate poverty. In January the leaders of the social enterprise community were requested to nominate candidates in their operation in tackling social needs while making profit.
Government policies in the United States help to foster entrepreneurial activity that helps in reducing poverty, fostering stability, and enhancing economic growth. These policies can be classified as either passive or active policies. The active policies are meant to help specific businesses while the passive policies help in maintaining a favorable environment for entrepreneurship (Furchtgott, Bruce and Even 47).
Access to capital, legal protection, and tax policies are the most successful strategies for encouraging entrepreneurship in the United States. United State has adopted tax deduction for business, business tax rate diminutions and tax waivers for venture and education that are encouraging entrepreneurship (Weinstein 75). The government has also balanced the goals of promoting entrepreneurship with those for raising revenue to ensure a positive balance between the two. In the United States the government has come up with agencies for small business that assists the entrepreneur with funds and guarantee loans. The United States government caters for the loans if the entrepreneur fails to repay the loan. In addition, the United States government has offered protection for the entrepreneurs in the countries and hence allowing it to flourish (Watkins, Edwards and Thakrar 116).
The government of the United States has also helped to foster entrepreneurship by valuing private entrepreneurs through simplifying the process used to acquire relevant skills. It has also made relevant business information available to the prospect entrepreneur through small business agencies (Cuban and Shapiro 54).
Entrepreneurship is an act of innovation that involves application of new ideas inorder to improve the organization. For an entrepreneur to be successful, they need to be in a favorable environment that enhances creativity and development. For an entrepreneur to be successful they must have adequate financial resources from their own saving, family and friends, banks loan, and credit cards. In the United States the government enhances entrepreneurship by providing its citizen with infrastructure, funds, and relevant business knowledge. Many universities such as Harvard universities have been opened to foster entrepreneurship in the country (Druker 156). Black American women and immigrants in the United States are the most entrepreneurial people in the United States.
Entrepreneurship has created job opportunities in the states and hence promoting economical growth in the country. The United States has been able to carry out entrepreneurial activity due to its interest in inventing new ideas and abolishing the older ones when they become redundant. Silicon Valley in the State of California is one of the major sources of job creation in the United States (Walker 88).
The United States has come up with policies of balancing entrepreneurship with tax which has been achieved by reduction of tax. Also the government has taken initiative to educate its natives on the importance of entrepreneurship through Small Business Administration. Also the agency assists upcoming entrepreneurs with loans and funds that are vital in entrepreneurship. The government of the United States has come up with policies of promoting entrepreneurship in the country; these are categorized as the passive and active policies (Kelly 36). Entrepreneurship in the United States can be hindered by terrorist attack and this makes the government not to issue citizenship to many foreigners. Hence terrorism can hinder the productivity growth in the United States.
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