This paper analyses and presents how the rest of the world now influences the United States as its entrepreneurial activity rises and decreases. The result of the analysis shows that the United States are still dominated by emerging countries in entrepreneurial activities. This is a result of weak cultural support, software industry, and high-growth markets. However, in start-up skills, competitiveness, and emerging technology the United States remain strong. Taxes in the United States decreased in 2018 compared to 2017. This may be the consequence of the reduction of the number of new business and entrepreneurial activity.
Zoltan and Laszlo indicated that even though the United States seem to be among the top entrepreneurial economies, its performance is based on the sub-index of expectations but remains slightly on the sub-indexes of attitudes and operation. On institutional variables the US-output tends to be better than on individual variables. A country cannot be strong without a strong economy especially in the private sector. All countries are living by its population via the payment of taxes (tax on company income, tax on salaries and wages, value added tax, tax on dividend).
The government redistributes this under different payments (paying its employees, supporting the poor via subsidiaries, payment for health insurance, payment for military expenses, investing in public assets). It is clear that taxes are the main source of revenue for the government. When people are rich, they make their government rich through their contribution. There may be a positive correlation between the amount collected by the government and the number of employed people and the number of companies.
Contents
1. Overview of Entrepreneurial Activity
2. International Comparisons and Business Creation
3. Entrepreneurship, Taxation and Economic Effects
Objectives and Topics
This essay examines entrepreneurial activity in the United States in an international context. It asks why emerging countries may outperform the United States in new business creation and considers the relationship between entrepreneurship, economic conditions and government revenue.
- International comparisons of business start-up activity
- Entrepreneurial strengths and weaknesses in the United States
- Innovation, business formation and job creation
- Entrepreneurship and government tax revenue
- US revenue figures for 2017 and 2018
Excerpt from the Book
United States Entrepreneurial Activity Analysis
Paul (2007) recognized the importance of new startups in job creation, productivity enhancements, innovation, as well as a route for social mobility. He added that United States contributed in entrepreneurship by increasing investments in R&D and higher education.
Jim (2015) made an analysis of the entrepreneurial situation in America. According to him, America ranked at 12th regarding business startup activity. Some countries like Hungary, Denmark, Finland, New Zealand, Sweden, Israel and Italy had higher startup rates than America did. The report of World bank (2019) on doing business ranked United States at 8 th position after New Zealand (1), Singapore (2), Denmark (3), Hong Kong SAR, Denmark, China (4), and Korea Republic (5), Georgia (6), Norway (7). According to Jim (2015) compared to the past 35 years, the number of business closures is greater than the number of business births since 2010. According to him, since 1977 until 2018, per year, startups outpaced business failures by about 100,000. Jim (2015) criticized a misunderstanding of the concept of entrepreneurship. He indicated that the leadership believes that the answer to economic growth and ultimately job creation was more innovation, and they continued to invest billions in it. Nevertheless, an innovation was worthless until an entrepreneur creates a business model for it and turns that innovative idea in something customers will buy. According to Jim (2015) it seems that there inappropriate strategies. Leaders did not think about different strategies, and continued marching down the path of national decline, believing innovation will save us. Jim (2015) is afraid of the situation of the business deaths. He said that when small and medium-sized businesses died America dies with it.
The question that one may ask is why United State is outperformed by new emerging countries in new business creation. Zoltan and Laszlo (2010) indicated that even though the United States seems to be among the top entrepreneurial economies, it performance is based on the sub-index of expectations, but remain slightly on the sub-indexes of attitudes and operation. Regarding start-up skills, competitiveness, and emerging technology, the United States remained strong, but weak in cultural support, software industry, and high-growth market. On institutional variables, U.S. output tends to be better than on individual variables.
Section Summaries
1. Overview of Entrepreneurial Activity: The essay introduces US entrepreneurial activity and its international context, identifying start-up skills, competitiveness and cultural support among the factors considered.
2. International Comparisons and Business Creation: The discussion draws on published assessments of start-up rates, business closures and entrepreneurial conditions to consider the role of entrepreneurship in economic growth.
3. Entrepreneurship, Taxation and Economic Effects: The essay discusses connections between business activity and public revenue and presents a comparison of selected US tax revenues in 2017 and 2018.
Keywords
entrepreneurship, United States, business creation, start-ups, international comparison, innovation, competitiveness, entrepreneurial skills, business closures, tax revenue, economic growth, OECD data
Frequently Asked Questions
What is this essay about?
It examines entrepreneurial activity in the United States in relation to international competition and economic conditions.
What are its central themes?
The essay addresses business creation, innovation, entrepreneurial strengths and weaknesses, taxation and the potential economic consequences of declining entrepreneurial activity.
What is the main research question?
It asks why emerging countries may outperform the United States in new business creation.
What method does the author use?
The author discusses published assessments of entrepreneurship and compares selected US revenue figures using data attributed to OECD.Stat.
What does the main discussion cover?
It considers international start-up comparisons, the relationship between innovation and entrepreneurship, and the possible connections between business activity and government revenue.
Which keywords characterize the essay?
Key terms include entrepreneurship, business creation, start-ups, innovation, competitiveness, tax revenue and economic growth.
Which years are compared in the revenue table?
The table compares selected US tax revenue figures for 2017 and 2018.
How does the essay distinguish innovation from entrepreneurship?
Drawing on Jim's discussion, it considers the entrepreneur's role in creating a business model that turns an innovative idea into something customers will buy.
- Quote paper
- Antoine Niyungeko (Author), 2020, Entrepreneurial Activity in the United States. Why are the United State Outperformed by New Emerging Countries in Business Creation?, Munich, GRIN Verlag, https://www.grin.com/document/956951
