Academic journal article American Academic & Scholarly Research Journal

Entrepreneurial Climate Creating Entrepreneurs

Academic journal article American Academic & Scholarly Research Journal

Entrepreneurial Climate Creating Entrepreneurs

Article excerpt

Abstract. The United States of America produced more entrepreneurs and created more industries than the European Countries and any other country in the world in the last two hundred years. The computer industry, the automotive industry, the entertainment industry, the airplane industry are a few examples of industries which started in the US instead of the old continent, Europe. The US had contextual factors to create these entrepreneurs and industries. The pragmatism, the melting pot, the religious factors, individualism and frontierism are the five transferable factors that every country may use. In this paper, these five factors and the entrepreneurial climate as the function of these factors will be explored.

Keywords: Entrepreneurship, American entrepreneur, frontierism, entrepreneurial mind, innovation.

1 INTRODUCTION

The United States of America produced more entrepreneurs and created more industries than the European Countries and any other country in the world in th e last two hundred years. The computer industry, the automotive industry, the entertainment industry, the airplane industry are a few examples of industries which started in the US instead of the old continent, Europe. The US had specific contextual factors to create these entrepreneurs and industries.

As being an interesting question "why these industries emerged in US and not in Europe" is to be answered in this research . In literature there are some works analyzing the rise and fall of countries but not industries. One of them is Kennedy (1988)'s "The Rise and Fall of Great Powers"; the other important work is Diamond (1997)'s "Guns, Germs, and Steel." The third work is written in a book named "The Wealth and Poverty of Nations" written by Landes (1998).

Kennedy (1988) explains the rise and fall of nations with a simplistic model. The nations that have economic-power can gain military-power as well. When they lose their economic power, they lose their military power in parallel. However this model does not explain why certain industries emerge and develop in one country.

According to Diamond (1997), the rise and fall of nations is comprehensible based on geographical functionality. The comparative advantage in the availability of agricultural production in some countries helped them to progress into industrial production. They used less time for agricultural production, and used their time to develop science and technology. Consequently they had the chance of developing economic and military power. This explanation again does not help to analyze why US did better than Europe, because in both sides they were able to use modern agricultural techniques, science and technology.

Landes (1998) claims that nations that can produce production tools and know-how rise in comparison to the nations that cannot. The base for production of production tools and know-how is private property rights, patent rights, and individual freedom. Because only free people can innovate, protect and sell their ideas in a market. This explanation models why democratic countries are in better position today, and undemocratic countries are living poverty; but does not explain the advantageous position of US in contrast to Europe.

2 THE CONTEXTUAL FACTORS THAT SHAPED AMERICAN ENTREPRENEURS

There are some certain factors that shaped American Entrepreneurs and that give opportunities to them to found new industries. Some of these factors are contextual factors especial to the United States. These factors clarify why some certain industries had been founded in US instead of elsewhere.

The Contextual Factors that Shaped the American Entrepreneur :

* The widespread use of English language

* Geographical and demographical magnitude

* Frontierism

* Melting Pot

* American Individualism

* American Dream

* Protestant Work Ethics

* Pragmatism

* Private Property Rights

* Intellectual Property Rights

2. …

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