Where Have All the Entrepreneur Gone?
Economic experts determine nearly 1 million entrepreneurs are missing from the economic landscape. The turn of the millennium induced the frantic pace of the dot com boom entrepreneurship rose to all-time highs. The number of entrepreneurs resides well short of optimal growth. Entrepreneurs represent an integral part of American culture and economy. The cooling of entrepreneurial endeavors inhabits a grave warning for the slowing of economic conditions. The three chief factors diminishing entrepreneurs include
- Suppressive Economic forces lead to ambiguous uncertain evaluations of future demand
- Education inequality, exponential rise in tuition costs saddle many graduates with student debt
- Wage Inequality causes the Entrepreneur to average older
The Great Recession
A dramatic decline in entrepreneurs highlights the impact of the economy on entrepreneurial endeavors. The economic down turns of 2008 irrevocably altered the course of entrepreneurship in America. The largest swath of entrepreneurs arises from the economic middle class. The shrinking middle class garners consistent media coverage. As wage inequality the amount of entrepreneurs diminishes.
Many entrepreneurs, with a few high profile exceptions, earn a college degree and spend several years in Corporate America. After the experience of working in large corporations many young entrepreneurs formulate ideas for development of a small business venture.
The cost of tuition in America rose by 250% since the beginning of the millennium. The skyrocketing cost accompanied by tuition rise, limits the attainability of a college education to families with college educated parents. The current system enforced not natural aptitudes but the socioeconomic demographic born into. Children with parents holding at least a bachelor’s degree are 60 times more likely to attain a degree themselves.
Entrepreneurs are Aging
As of 2012, the most current years of figures available the average age of an entrepreneur rests along 31 years of age. Prior to the 2010 decade the average age of an entrepreneur inhabited an average 25 years of age. It isn’t that current young people aren’t innovating, the economic downturn exerts strong suppressive force for entrepreneurship.
Entrepreneurs Have Less Capitol
Entrepreneurs require adequate initial investment capitol towards starting a business. Often the best source of startup capital arrives from homeowner equity. As the cost of homeownership approaches record highs, many young entrepreneurs effectively cannot put up a home as collateral. Attaining a house, after the large amount of defaults during the latter part of 2000s decade, occupies a higher level of difficulty for would be entrepreneurs.
Why Entrepreneurs Are Economically Important
Entrepreneurs Drive Economic Gains
Entrepreneurs embody a substantial engine driving economic progress. Many people, outside of presidents, codified in American culture are entrepreneurs. Historical figures including, Henry Ford, Andrew Carnegie, and John D. Rockefeller are the core of historical American Entrepreneurial spirit. In recent memory, entrepreneurs in California, developed semiconductor manufacturing companies, over decades transformed into the famous Silicon Valley. The concentration of semiconductor companies in California’s San Francisco Bay Area, all entrepreneurs, provided fertile grounds for developing a robust industry.
Entrepreneurs Alter the Economy
Many people, outside of presidents, codified in American culture are entrepreneurs. Historical figures including, Henry Ford, Andrew Carnegie, and John D. Rockefeller are the core of historical American Entrepreneurial spirit. The industrial magnates during the turn of the 20th century widely receive credit for building America into a robust economy. Henry Ford bought land in Michigan specifically because it was unfertile land. Henry Ford created and economic engine in previously economically unimportant land into a thriving economy.
Carnegie receives credit for single handedly expanding American Steel Industry into world class territory. Pittsburgh, the base for Carnegie’s steel operations experienced large reversals in fortunes. Pittsburgh became so indebted to the steel industry founded there NFL team Pittsburgh derived the name from the dominate industry in the city.
In recent memory, entrepreneurs in California, developed semiconductor manufacturing companies, over decades transformed into the famous Silicon Valley. The concentration of semiconductor companies in California’s San Francisco Bay Area, all entrepreneurs, provided fertile grounds for developing a robust technology industry.
Entrepreneurship exerts a disproportionate influence on the American economy prosperity. Nearly a Million entrepreneurs are missing from economic projects. Encouraging entrepreneurship fortunately becomes possible with a few key changes in economic policy.
Greater access to Education
The single greatest influential factor on entrepreneur growth rests on the attainment of college education. Barring a few notable examples including; Bill Gates, Steve Jobs, and Mark Zuckerberg, the majority of future entrepreneurs receive at least a bachelor’s degree. The exponential growth of college education prohibits a large group of children who lack a college educated parent. Prospective students from low to middle income households after attaining college degree are saddled with student debt. Excessive student debt exerts negative pressure to engaged in less risk by staying in a corporate America.