The Global Entrepreneurship Monitor (GEM) recently released their 86 page report on the state of entrepreneurship across the world. The research program, initiated in 1997 as a joint venture between academics at London Business School in the United Kingdom and Babson College in the USA.
According to GEM, the U.S. showed a clear advantage over every other region in the world when measuring the extent to which existing social and cultural customs favor emerging activities to find new methods of conducting business. Moreover, the culture of the United States is one where risk taking and high levels of innovation are greatly encouraged and not looked down upon in our society.
United States Ranks High For Entrepreneur Opportunities
Per the GEM’s report, the United States received a score over 4 (out of 5), while the closest region in comparison (Asia Pacific & South Asia) received a score just under 2.5. The responses are measured on a 5-point scale where a score of 1 is completely false and a 5 is completely true. In this case, a score of 4 or 5 would indicate the factor as positive for entrepreneur opportunities, while a score of 1 or 2 would indicate the factor as negative for entrepreneurship. It is clear that the culture of the United States is one of the best in the world for engaging in startups and entrepreneur opportunities.
Entrepreneur Opportunities Need Financial Backing
According to the SEM’s report, the eye-opening statistic from across the world accentuates two crucial factors for a business closing. The first is lack of sustained profitability. The second is the inability to raise sufficient capital. In fact, in every part of the world except for Asia Pacific and the South Asia region, over 50% of businesses closed their doors due to one of these two reasons.
The key for these entrepreneurs is to locate and develop alternative financing strategies. While most businesses are still bootstrapping, they need to stay focused and encouraged as more borrowers and lenders are getting creative. Crowdfunding, peer-to-peer lending sites and Dell Innovators Credit Fund are just a few examples of innovative funding sources that are increasingly available to entrepreneurs and SMB owners.
Human Resources Represents Another Challenge
One key discovery through Dell’s “Go Local” nine-city tour was that entrepreneurs also struggle with finding good talent. Much can be gained by understanding how to maximize current and potential human capital within a business and extended entrepreneurial world. Online and in-person networking opportunities have never been so valuable to help expand a business. Moreover, personal development training programs will need to be sought to elevate the knowledge and skill sets so as to take advantage of bigger opportunities.