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What’s Really Wrong With America’s Economy – Not Enough Startups ?

What’s Really Wrong With America’s Economy – Not Enough Startups ? There is nothing we have to debate about how national economy influences and directs each individual’s life. This also happens in the giant country like US. Once their economy stumbles on a dynamic issue, the whole people there would be able to feel the waves. In fact, there is currently a graveled track the US economy has to tackle. And it has something to do with the nation’s general productivity and hard regulation.

The American economy has been relying on innovations especially on the fast growing young companies. Buying out such small young and potential startups is an underlying secret of enormous success of big companies. This directly or indirectly brought the American economy to the front page of global markets. But the recent government data shows a different picture. The share of young (less than an year) private firms  is just 8% since 2010 while it was 12% in 1980s. The startup rate fell down to second-lowest on record in 2014. There is little sign of a postrecession rebound as per the recent Census Bureau figures.

How Productivity Matters :

It is discovered that startups are the future of many countries’ economic stability. New companies that keep emerging and rising in every year help the country decrease unemployment as well as support the larger-scale companies. All of them are hand-in-hand to guarantee their country’s economic stability.

Just imagine if in your neighborhood, there are more people open stores for providing food to people in that particular area. What do you get? Obviously more food and also more job opportunities, right? That’s roughly how significant productivity is.

Unfortunately, US has recently found it hard to move with sufficient number of startups. And that seems to bring issues to their economy. Also read USA Job Market & Economy – Still A Heaven?

What Makes The Problem?

But what if productivity of potential entrepreneurs are depressed? The pressure can come in many forms, such as the depressing ‘enjoyable’ employment contract which has long buried entrepreneurs’ dream to build their own firms.

So, it is not like US citizens are lack of skills and competences to start their business. But, their current environments disable many opportunities for these future business people to take. Consequently, self-employment becomes less attractive for entrepreneurs even the great ones.

Moreover, there is another challenge faced by new players to involve themselves into the niche. Hard regulation—it is proven that there are abundant of challenging regulations that ‘hinder’ new entrepreneurs to grow with their business.

There are a number or examples showing how hard it is for new players to provide their startups with everything they require in order to grow. Lack of venture capital and opportunities are also apparent. That is why those startups that succeed to grow are those being developed in less hard regulation.

Therefore, it is pretty clear for America to refresh their regulation and economic pace in order to deliver better opportunities for new entrepreneurs. Top 5 Best Paying Jobs In Future explains the Job market in a global platform.

 

Tags : Not Enough Startups in USA, USA Startups Trends, USA Startups are Less, USA Top Startups

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