Importance of Entrepreneurship to Economical Emergence of a Nation (Case Study of the USA)

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O Cameroon, cradle of our parents. Land of promise for a few and land of doom for the majority. Those who see the promises are the few courageous ones. And the majority who see Cameron as the land of doom do so through the eyes of the economy which is a lil bit shy of pathetic.
The Cameroonian economy is both underdeveloped and developing (a lil bit faster than snail pace) and it is my believe the most developed economies in the world were once down the scale as the present state of Cameroon. But what is the formula used by these "emerged" economies? Let's take a look at how the United States of America (capital of the free World) attained and surpassed the vision of Cameroon.
Of the 27.9 million businesses in the United States, approximately 27.8 million, or 99.7 percent, are considered small. Although there is no universal definition of a small business (the U.S.
Small Business Administration has more than 800 definitions of a small business based on industry categories), a common delineation of a small business is one that employs fewer than 100 people. They thrive in virtually every industry, although the majority of small companies are concentrated in the service, construction, and retail industries. Although they may be small businesses, their contributions to the economy are anything but small. For example, small companies employ 49.2 percent of the nation’s private sector workforce, even though they possess less than one-fourth of total business assets. Almost 90 percent of businesses with
paid employees are small, employing fewer than 20 workers, but small companies account for 43 percent of total private payroll in the United States. Because they are primarily labor intensive, small businesses actually create more jobs than do big businesses. In fact, between 1993 and 2013, small companies created 63 percent of the net new jobs in the U.S. economy.
The ability to create jobs is not distributed evenly across the small business sector, however. Research shows that the top performing 5 percent of small companies create 67 percent of the net new jobs in the economy, and they do so across all industry sectors, not just in “hot” industries,
such as high-tech. These young, jobs creating small companies are known as gazelles, businesses that grow at 20 percent or more per year for four years with at least $100,000 in annual sales.
Nearly 85 percent of these high impact companies are located in urban areas. Not surprisingly, cities with high levels of entrepreneurial activity boast higher levels of job creation than those that are home to heavier concentrations of existing businesses. “Mice” are small companies
that never grow much and don’t create many jobs. The majority of small companies are mice.
In fact, 75 percent of small business owners say they are not seeking rapid growth for their businesses and want to keep them small. The country’s largest businesses, “elephants,” have continued to shed jobs for several years.
Small businesses also produce 46 percent of the country’s private GDP and account for 47 percent of business sales. In fact, the U.S. small business sector is the world’s third-largest “economy,” trailing only the entire U.S. economy and China! One business writer describes the United
States as “an entrepreneurial economy, a system built on nimble, low-overhead small companies with fluid workforces, rather than the massive conglomerates that upheld the economy for decades.”
Small companies also are incubators of new ideas, products, and services. Small firms create 16 times more patents per employee than large companies. Traditionally, small businesses have
played a vital role in innovation, and they continue to do so today. Many important inventions trace their roots to an entrepreneur, including the zipper, laser, brassiere, escalator, light bulb,
personal computer, automatic transmission, air conditioning, and FM radio.
I am certain after reading this short piece, you must have realized that the secret ingredient in the making of these emerged economies attractive especially to those of us who have it as a vision.
The key word here is Entrepreneur; one who creates a new business in the scaring face of risk and uncertainty for the purpose of achieving profit and growth by identifying significant opportunities and assembling the necessary resources to capitalize on them.
Mehn that was too long and big, an entrepreneur is one who starts a business no matter the consequences.
Would you want to know more about the benefits of Entrepreneurship? Benefits of Entrepreneurship  

Reference Text: Essentials of Entrepreneurship and Small Business Management. 8th Edition


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