Less entrepreneurship, growing economy

-
Data obtained by the Federal of reserve show that the proportion of Americans that get into entrepreneurship and set up their own business is shrinking. This means that people don't have to start their own company which is a necessity in case they can't find a job.

In other words, the more good jobs are generated in a country, the fewer people decide to go into business for themselves. This is a sign for a healthy and growing economy which is effective enough to offer employment to its citizens.

On the other hand, when companies are growing in size, then they become more efficient. They buy everything they need in large volumes taking advantage of economies of scale. As an example, think of a large store that employees lots departments and can replace many independent entrepreneurs. Therefore, if we can develop high growth companies, the job market will grow too and less people will get forced to start their own business.

America, carry on!

Comments

  1. Anonymous10:53 AM

    Interesting you should say that...

    Especially since statistics have shown that the US economy has lost a total of 260,000 jobs since the beginning of 2008.

    ReplyDelete
  2. Anonymous2:15 PM

    I think it would be very difficult to argue with the goal that we should "develop high growth companies". I'm less convinced by the stance in favor of large companies, though.

    I've worked in many large businesses, in the US and the UK, in the role of both a line manager and a consultant. It seems to me that, by the time a company grows "large", the ability of the average manager to handle the more complex problems inherent in such a structure, especially communicating with and motivating the employees, is stretched too far.

    Self-employed people at least have a clear motivation - survival!

    But whether it's large or small, growth is essential.

    ReplyDelete
  3. Anonymous11:59 PM

    The U.S economy is now facing lot of difficulties,it is necessary to take quick action against the situation.

    ReplyDelete

Post a Comment

Popular posts from this blog

Never a Better Time to Buy Abroad

-
Image
Buying properties abroad can be nerve-wracking, especially in today’s economic climate. The fact that you will be dealing with a wholly different market from the UK, and you have little interaction or immersion with different areas, can make selecting and committing money to a property incredibly daunting. Now is the best time to start considering making an investment in holiday property though. The Great British Pound is slowly growing in strength against the Euro, in fact buyers can expect to buy 25% more Euros per pound than they could three years ago, when the exchange rate was almost equal. It means that you get a lot more for your money. This is coupled with a housing crash in many European countries. Spain in particular is a hotspot for those looking to purchase a holiday home. Due to the severe economic downturn in the country, house prices have plummeted, with some Spanish banks offering some properties discounted up to 70% against their 2008 price. Head of Savills ...
Read more

Got a Holiday Flat or House in London or Weymouth?

-
Image
If you have a Holiday flat or house in London, this could be the right moment to make some extra cash. With the Olympic Games starting the 27 th July and ending the 12 th august 2012, many visitors are looking for a place to stay. Especially if you are close to the Olympic Games complex (Stratford), this could be quite profitable. The overall market prices in London have already risen by 16% from 2011 to 2012 according to some Real Estate Agencies . House prices have risen by 1.4% since 2010  in almost all areas of England.
Read more