Why is it that some countries seem to have more innovation and growth in their business sectors then others? It might be that these countries are willing to foster an entrepreneurial spirit that spurs new technology and subsequent growth.
According to report from the Panel Study of Entrepreneurial Dynamics from The University Of Michigan, "There is now substantial recognition of the contributions
of entrepreneurship to innovation, job growth, and improved
productivity. This also appears to be true for countries,
as those with higher levels of new firm creation seem to have higher
levels of subsequent economic growth (Council on Competitiveness, 2007; Reynolds, 2007a)."
This is also true in countries where the spirit of entrepreneurship is strong. A number of Asian countries, particularly China and India, exhibit high levels of economic growth due in part to the level of new firm creation.
While the United States is a haven for new firm creation it pales in comparison to China and India where the level of high growth start-ups is roughly six times as many in the the United States
- China and India 15 million compared to 3 million high growth potential start-ups.
- China and India also have a larger labor pool to draw from with eight times as many workers in the eighteen to sixty four year old age range.
- China and India also have ten times as many entrepreneurs, 200 million compared to 20 million for the United States.
- The World Bank estimates the GNP of China to be at 6.5% this year, India currently stands at 5.8% and the US is still contracting at 5.5 % which is slightly better than previously expected in the global economic slump.
Resources:
US Department Of Commerce.
Picture: Cattle Drive in Mackay,Idaho
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