Learn 8 reasons why entrepreneurship is better in the United States. If you are planning your own business you have probably started looking at the business market as a whole, which includes the number of people who are entrepreneurs in America as well as globally.
Why entrepreneurship is better in united states? There are various reasons why entrepreneurship is better in USA, check out the below top 8 reasons:
- The American Dream
- Americans Believe in Individual Freedoms
- The Celebration of Inclusivity
- The Ease of Doing Business
- The Ease of Getting Startup Capitol
- America Embraces Innovation
- Networking and Building Relationships
You may be wondering why entrepreneurship is better in the United States, and it seems like a large percentage of the workforce in America either runs their own business, has in the past, or has plans to do so in the future.
Do you wonder why this is?
Keep reading to find out 8 different but important reasons why entrepreneurship is better in the United States and why you should also strongly think about becoming an entrepreneur.
8 Reasons Why Entrepreneurship is Better in the United States
1. The American Dream
The American Dream and what it means to people could perhaps be the biggest reason why so many people decide to run their own businesses.
The American dream teaches everyone from a very young age that regardless of where they were born or what family they were born into, they can do whatever they set their mind to in life.
Believe it and achieve it.
This is a very simple but powerful phrase that all Americans understand. If you set your mind to something and work hard, you can make your dreams come true.
Whether you want to open a nail salon or run a construction company, the dream is not as important as the hard work and dedication you put into it.
In America, it is not supposed to matter how much money your family has, your race, your age, or your sex – if anyone can find success in society here as long as they work hard, are productive, and put the correct amount of effort into whatever dream they are trying to accomplish.
Part of the reason Americans start so many businesses is that they have been taught from a very young age to believe in themselves and to always chase after their dreams.
They are not held back by self-doubt or worries about failure as they can see how the businesses they are thinking of doing will succeed!
Education can play a part, but just as the American dream is a living and changing idea, so is education. Traditionally, when you thought of the type of education to run a business it would be from a major college or university and the degree would either be in the field of your business or a general business degree.
Some people still do choose to go to college first and either get real-world experience in the area their future business will be in, but many do not.
A large percentage of small business owners in America only have high school diplomas. Going to college is not a prerequisite of owning a business, however, it can help some individuals.
For some people, the education they have is working in a particular field for years and learning on the job. World and life experience can also be considered an education. However, people do many things to educate themselves outside a traditional school setting these days.
People can read everything they can find on the type of business that they are starting – including articles, blogs, books, e-books, and manuals. Next people can watch tons of videos online these days to learn any skills they do not have.
Finally, if you do not have the time for 2 – 6 years of additional schooling you can always take individual classes.
You can take classes at local community centers, colleges, and universities, online both through traditional education centers or through websites that specialize in having members teach classes on subjects they are experts in.
3. Americans Believe in Individual Freedoms
You will hear Americans talk about their rights and overall freedom a lot. Truth be told, the rights we have in America are actually pretty similar to many other first-world countries.
The difference is the level of importance that is placed upon our rights and individual freedoms in America which molds how we think about them.
Since Americans tend to identify with their nationality and the rights and freedoms that come with being an American they think about these rights and apply them to their everyday life as well as how they think about things.
They may believe that America is the best country in the world and as an American, they should always have the best of everything – which certainly includes the right to start and operate their own business.
This gives them an extra layer of self-esteem and confidence that doing whatever you set your mind to and doing it well is part of what it means to be an American. They may also feel like if other people can do it, why can’t they?
All of these thoughts and beliefs work together to create more people in America that want to at least try to be an entrepreneur.
4. The Celebration of Inclusivity
America is commonly referred to as the great melting pot – it is a country where people have different ethnic backgrounds, religious beliefs, and different values and backgrounds. Because of this simple fact, the business world is also more inclusive.
Most people do not stop to think about their own ethnicity before starting a business. They do not consider themselves outsiders and worry about how the public will react to them owning a business.
Sure, America is not perfect, but a good percentage of the population do not care who runs a business and don’t decide whether to shop somewhere or hire a contractor based upon their background or sex.
These thoughts and feelings have been ingrained in most Americans and because of how inclusive this country is more people are brave enough to take the first step in becoming a business owner than they would in other places.
5. The Ease of Doing Business
The ease of doing business is generally based upon the different things a business owner will need to deal with from starting a business to the everyday actions needed to run a business. Some of these categories include:
- Time to plan your new business
- Start-up costs
- Construction Permits for a Physical Location
- Turning on Utilities
- Registering Commercial Real Estate
- Getting Lines of Credit
- Doing Business Across Borders
- Paying Taxes
- Enforcing Contracts
When you are looking at the above you need to think about how difficult these things may be in America versus another country.
For the most part, this list is quite doable in America. Time and money are always the most important and difficult things to deal with – but most people can deal with the financial aspects of running a business.
If you do not have the start-up costs for a business there are many things you can do to change this. You can look into getting a loan. You can look into finding investors to raise the capital.
Depending upon your own circumstances you may also qualify for various grants for a new or existing business to either help get off the ground or stay afloat during tough times.
Finally, the ease of doing business in a specific country is directly related to that country’s government.
America has a lot of going for them when it comes to how the government can help with new businesses as well as how much their government can possibly detract from a new business.
Usa.gov has a whole business section on their website to assist in everything from how to finance your business, how to start a business, and understanding small business taxes.
Besides the help the government can give you, it is also important to note that in America you do not need to worry about a corrupt government overtaxing you, threatening your livelihood for no reason or arbitrarily shutting you down or ruining your business just because they can.
6. The Ease of Getting Startup Capitol
We started discussing startup capital in the ease of doing business, but there are many ways both traditional and modern to get money to start your business. Here are some ways you can consider:
- Family and Friends – Ask for help from your family and friends. You can either do this with investing opportunities or loans. When it is a loan you may have the added bonus that family and friends may not charge interest or have an easy repayment plan.
- Crowdfunding – Crowdfunding is a modern way to gain financial backers from people you may not even know. You would pitch your business idea and growth potential on a crowdfunding site and investors could give your financial support as well as social media marketing support!
- Find Investors – Look for your own investors before starting your business. Although this can involve a lot of work in the beginning there are a lot of advantages. Typically, when someone declines they will tell you why (or you can just ask) which will give your valuable information on how to make your business plan even better. You will need to pitch possible investors, therefore you will have all the details worked out in a more detailed way than you may have otherwise!
- Enter a Contest – There are really contests for everything! You can find a contest or competition that pits potential investors against each other and the winner gets whatever the contest is offering – a set cash prize, a certain amount of investors, or free marketing.
- Even if you do not win you will learn why you didn’t – whether someone else just had a better idea, or what flaws are in your own idea. Also, depending upon how publicized the contest is, it is possible to still use it to get investors for your startup.
- Find Ways To Self-Fund – If you have run out of options of finding the money in other places, you can fund it yourself. Here are some ways to do that:
- Take out a business loan
- Take out a second mortgage
- Use Your Credit Cards
- Use Your Savings
- Sell Personal Assets
- Do a Side Gig
You may like to read, Top 10 most successful businesses to start.
7. America Embraces Innovation
America is all about new and different -especially if these new and different ideas or products can make our own lives better.
To understand this, one only needs to go back to the US Constitution and read the first amendment. Our freedom of speech allows us to have the option to be innovative and different.
Americans embrace what is different and unique in individuals as well as in companies. This allows people to start businesses that stray away from the traditional and people understand in America it is okay to be different in so many ways.
People show their individualism in the clothes they wear, their hairstyles, their cars and homes, and the hobbies they choose.
So if you have a business that is innovative and either helps or gives something to specific sections of the population, in America you should go for it. You do not need to worry that it is not mainstream enough.
Check out, How to Be an Entrepreneur without an Idea.
8. Networking and Building Relationships
In many places people who run businesses that are either directly competing or are just in the same industry look at each other as competitors, possibly in even harsher terms.
Americans understand the value of networking and building relationships with people they are competing with. It is not just you against them situation.
Most of the time, there is room in the market for many businesses that are doing relatively the same thing.
By building a relationship with others in your field you may learn something – whether it is about the market, where to find better suppliers, or how to do something quicker or more efficiently.
You will have the opportunity over time to team up and release a product or even just a marketing campaign that will benefit you as well as your competition.
Whatever relationships you build will also allow you to connect with someone who really understands what you are going through.
They may be able to help you out, give you input you had not thought of before or just be a sounding board when other people who do not run their own business or are not in the same industry just do not understand your frustrations or where you are coming from.
After reading all 8 reasons why Entrepreneurship is Better in the United States you should better understand the advantages of starting a business in America versus anywhere else!
Bijay is an entrepreneur and start-up founder having more than 14 years of IT industry experience. He is the co-founder of TSInfo Technologies, a SharePoint development company.
A dedicated professional and very passionate about public speaking and also wrote thousands of technical blogs in various technologies. He also wrote a lots of blogs on entrepreneurship, investment, startup, business, manage money tips, etc.