Why we are different

Why is America so much more entrepreneurial than many other parts of the world? I would like to think it is our economic and political systems, but given the drastic change we’ve witnessed over the past fifty years that is not a big a factor as it once was. We continue to move toward a more socialistic system. What keeps us entrepreneurial is our culture. Sadly, the changes we have seen on our political and economic systems will, over time, influence this culture. What is interesting to me is to see how the Europeans, who the more socialistic leaning in this country seem to fawn over, are desperately trying to figure out how to create a more entrepreneurial culture. The 2004 European Commission Report titled “Helping to Create and Entrepreneurial Culture: A Guide on Good Practices in Promoting Entrepreneurial Skills and Attitudes through Education” is a good example of their attempt to foster more new enterprise. But the fact is that culture is so very hard to change. That is good for us, as it may buy us time in this country, but not so for the Europeans as they struggle to be the relevant economic super power they dreamed of becoming through their economic unification.
Thanks to the National Dialogue on Entrepreneurship for providing this link.

Way back to the future

I was rummaging through my virtual attic again this weekend and came across a fascinating study published by the National Commission on Entrepreneurship. The study, from August 2001, looks at the origins of the Fortune 200 companies in 1917 and 1997 to see how these leading companies were formed.
?Of the 1997 Fortune 200 companies, 197 of them were traced back to one or more entrepreneurial founders. Many of the 1997 Fortune 200 were also among the largest corporations in 1917.?
This is an amazing statistic. Although almost all of the Fortune 200 companies have entrepreneurial roots, many were already large companies sixty years earlier. That is why the current entrepreneurial economy needs to be encouraged and supported. Our economy has ridden a wave of entrepreneurial activity that has its roots in the late 1800?s! These companies are no longer creating new jobs for America. They are a noble bunch, but their time is passing.
So how do we recreate the era that spawned such an entrepreneurial revolution? First, we need to celebrate, not demonize free enterprise. We are brainwashing our children into thinking that business is bad. Our children are inundated with the message that business pollutes, oppresses the poor, and hoards scarce resources. While businesses do need to be accountable, the vast majority of economic activity is good.
Second, we need to help train and educate today?s entrepreneurs. Study after study is showing that this drastically improves a new venture?s chances for success.
Finally, get government out of the way. Ever increasing governmental intervention in the economy preserves the old, often in spite of markets that tell us these companies have seen there better days, and inhibits the new. ?It has become more difficult for an entrepreneur to lead a new company into the Fortune 200,? reports this study. While some still believe that the government can guide and direct economic development, only three companies, Fannie Mae, Freddie Mac, and Union Pacific trace their roots as being governmentally founded.
I know that I have said much of this before, but this is the only way that we can assure that out of the activity of our entrepreneurial economy today, the new pack of leading companies for our future can be allowed to develop.
We are in a period that has the potential to rival the entrepreneurial economic expansion of the pre-1900?s. Politicians need to remember that entrepreneurial economic activity is like a golf swing. The more you try to force it, the worse the result. Swing easy and freely and the ball will go forever.

Employment update

The Joint Economic Committee has released more employment data that supports the fact that our economy is indeed expanding:
Highlights:
* From February to March, total non-farm payroll employment increased in 37 states, decreased in 12 states, and remained unchanged in 1 state.
* Compared with February, manufacturing employment increased in 22 states, decreased in 17 states, and remained unchanged in 11 states.
* Since this point last year, unemployment rates have decreased in 44 states, increased in 5 states, and remained unchanged in 1 state.
You can see the complete report here.

Avoid the noise in marketing strategies

An important aspect of bootstrap marketing is to choose a media where you are not competing with too many other businesses for customers’ attention. Small Business Trends offers some interesting thoughts on the current challenge small businesses face with Internet search engines. They offer several options that can make the use of the Internet work for your venture.
But remember, think like your customer. Not every business needs a web site (I must be getting old, as I remember giving the same advice about yellow pages advertising years ago). Know how your customer makes decisions about you versus your competition and choose a marketing media that makes sense for that behavior. The cost of a web presence can add up quickly, so make sure it is an investment that will bring you customers.

So you need an idea for a business to start?

Thanks to Dane Carlson for leading me to his blog Business Opportunities. His blog provides many great links to the creatively-challenged but doggedly determined would be entrepreneurs to explore as possible ideas for businesses to start. Dental equipment repairs, wine bars, and elder care are just a few of the opportunities he links you to at this site.
Of course, like with any idea, even already developed ones like these, you still need to go through a very thorough opportunity assessment and develop your own business plan for your specific market. Also, make sure it is something that really interests you and that you can be passionate about. There are too many ups and downs to pursue some idea just because it makes financial sense. Starting a business is more like a marriage than simply finding a roommate to share an apartment. It becomes part of every waking moment of your life (and often many of your sleepless ones as well), so make sure you find an idea that you can stay emotionally committed to over the long haul.