The Global Entrepreneurship Monitor, a project that makes assessments of various activities by different entrepreneurs across the country, with their different characteristics and their role in the nation’s economic growth has in its 2011 report, made a very interesting observation. Having conducted a study together with the Babson and Baruch Colleges, it has come to the conclusion that America has topped the list of Innovation driven entrepreneurs.
With Americans being least afraid of failures and over twenty nine million American adults getting involved in some entrepreneurial activity, the country has been soaring with activities by entrepreneurs. This has resulted in an increase in the Total Entrepreneurship Activity in America which has risen up to a percentage of sixty three. This is the highest level of Total Entrepreneurial Activity when compared to other developed economies across the globe.
Also, a study reveals that over 39 percent of these different entrepreneurial activities are on the road to creating more jobs within the next five years in America.
Another interesting factor revealed here is that most of these startups in America focus on their business at the domestic level. When it comes to internationalization, America proves to be one among the lowest with just a thirteen percent of its entrepreneurs receiving more than a quarter of their revenue from overseas sales.
“It’s important to recognize the size and diversity of [the United States], as well as the fact that there are only land connections to Canada and Mexico. … Western Europe has common borders and people with multiple language abilities.” The report states, as put forward by bostinno.com.
“We saw an unprecedented jump in entrepreneurial activity in 2011,” commented the GEM Report’s lead author, Donna J. Kelley, Associate Professor of Entrepreneurship at Babson College. “Most of these entrepreneurs were in the process of just getting started, which means a lot of people took the leap into entrepreneurship during 2011. In addition, compared with 2010, more people reported that they were intending to start businesses in the next three years, showing a more positive future outlook for entrepreneurship in the United States after two years of declining indicators.”, as reported by sacobserver.com
“Importantly, necessity-based entrepreneurship accounted for a lower proportion of entrepreneurial activity in 2011,” continued Kelley. “In the depths of the recession, we saw a tremendous increase in people starting businesses out of necessity. In 2011, the entrepreneurship rate was pulled up primarily by those starting businesses to pursue promising opportunities–a strong sign of entrepreneurial activity occurring as a result of optimism, not desperation.”