Entrepreneurship is a catalyst for economic growth. It is the duty of any government with the heart of progress, to see that the wealth is evenly distributed to the rich and poor. For any country who wants to make a huge difference in the world, capitalism becomes a must. This is so that every citizen is given the opportunity to take a shot at life with its opportunities.
In a globalized economy as America-with its entrepreneurial mentality, this has held sway for quite some decades now. Good news is that it is still holding sway. No people keep an economy in the path of increase like entrepreneurs
The entrepreneurial industry no doubt contributes positively to the American Economy. The United States of America has a GDP of $14.7 trillion, showing that the economy actively produces goods and services. Also 52.8% of the employed is absorbed by companies with 500 employees.
According to the Kauffman Foundation Study,
“The BDS Series tracks the annual number of new businesses (startups and new locations) from 1977 to 2005, and defines startups as firms younger than one year old.
Furthermore; “And it’s not just net job creation that startups dominate. While older firms lose more jobs than they create, those gross flows decline as firms age. On the average, one year old firms create nearly one million jobs, while 10 year old firms generate 300,000.The notion that firms bulk up as they age, in the aggregate, not supported by data. ”
Small business firms drive the financial system by providing jobs for over half of the nation’s private workforce. The figures from the (Small Business Administration) SBA show that small businesses increases employment by 853,074 during 2001-2002.
If the private sector is recording tremendous effects on the economy, wouldn’t it be darn right to talk in favor of it? Today, small business owners are the ones who make the American dream possible. If the facts above are anything to go by, then here below are the features that make the private sector different from their public counterparts.
The innovative ability innovative ability possessed by small business owners in the U.S. has caused positive effects on the American economy. Little wonder these ventures churn out different brands and products that have continued to improve and fuel the economy as well as the living conditions of the citizens of America. Creativity drives innovation. Hence the creative skill portrayed by these entrepreneurs is what makes the huge difference between the private and public sector.
CEO of the Kauffman foundation Carl Schramm said in his manifesto, he stated that;
“For America to thrive, or even survive, we must see expanding entrepreneurship as our nation’s competitive advantage that needs to be fully exploited”
This manifesto further shows how exporting entrepreneurship overseas is vital to America’s continued economic growth, opening markets abroad, while increasing a healthy competition at home. He shows why spreading entrepreneurship must be a pillar of the American policy-above military and political solutions.
The presence of myriad businesses, products and services makes it readily available for entrepreneurs in America today, to compete favorably against one another, thereby getting better. Even in the midst of heavy tax rates and a slim profit margin, healthy competition haven’t ceased from existing. With the public sector the reverse is the case, as there isn’t anyone to compete with but themselves.
It is the duty of every entrepreneur to seek and build a brand that would stand the test of time. This is what a majority of small business owners have done. They have consistently come up with brands that could be relied upon any day. No wonder brands like McDonalds and Starbucks have come to stay. This has caused the people to be more acquainted with these private brands than the public ones.
4. Risk Takers
Entrepreneurs are known as ardent risk takers because they face risks with their ventures. Their ability to make huge investments, experience gains and losses makes these business owners standout. With the Obama’s strict policies, the risks include; market uncertainties, production uncertainties and resource uncertainties. You would agree with me that these entrepreneurs are going through ‘the school of the hard knocks’.
Sam Patterson puts it this way in his article;
“They take risks without any certainty of reward. They push forward new technology. They try things that others might consider unlikely to succeed, and occasionally this result in successes that would never have even been attempted otherwise”
Their risk-taking prowess makes it easier to forge ahead in business despite the strict regulations that are.
5. Opportunity for Personal and Professional Growth
The private sector makes available a career path for anyone who will be willing to seize the opportunity; unlike the public sector jobs, where one is stuck in a dead end job. No one grows beyond the level of a mediocre without constant improvement in all frontiers. Furthermore, the experiences these small business owners face everyday toughens them and at the same time shapes them to be better business men and women.
Are You Still In Doubt About Who Drives The Economy?
No doubt Obama’s government provides infrastructure, defense and what have you. But the undeniable fact remains that these small business firms pay those heavy taxes on business income and corporate income. Also don’t forget in a hurry those on personal income, lands and houses.
Do not be deceived about who runs the economy; because the very moment entrepreneurs decide to fold up, then we would be left with little or no American economy at all.
If you still are in doubt, think it this way; Have you ever thought what could happen if these taxes weren’t collected? How will the economy be like? Would that still make the United States of American economy a world power, or will we still be grappling with the effect of an emerging nation?
Your guess sure is as good as mine.