| The American economic system of capitalism is | | | | entrepreneurs will not give up. They have the genetic |
| unique in the industrialized world. Forms of capitalism | | | | makeup necessary for any entrepreneur to succeed. |
| exist in many countries, and the one general statement | | | | They will keep trying. |
| that applies to its usage is that capitalist countries are | | | | I can attest to the difficulty of being an entrepreneur in |
| always more prosperous than non-capitalist states. | | | | other capitalist countries. I have started businesses in |
| That being stated, why is American capitalism so | | | | England, France, Sweden and Spain. When seeking to |
| advanced, successful, admired and feared? | | | | organize in these capitalist (to a varying degree) |
| We all know that America offers the most dynamic | | | | countries I was amazed at how difficult it was to |
| advanced economy in the world. Brands such as | | | | satisfy the state. Upon reflection, exploring and |
| Coca-Cola, McDonalds, Estee Lauder, IBM, MicroSoft, | | | | experiencing the vagaries of these bureaucracies, I |
| Kentucky Fried Chicken and hundreds more are | | | | discovered a blunt answer for the very high real costs |
| badges of the amazing success of the American | | | | to enter a new business: these states use extreme |
| model in achieving worldwide prominence. Each of | | | | hurdles to minimize the chance for failure. |
| these enterprises were born of entrepreneurial roots, | | | | Fortunately it is just the opposite here in America. Small |
| grown with care, and gracefully matured into powerful | | | | business incubators, regional business development |
| engines of profit. Other countries can proudly point to | | | | centers, university entrepreneurial programs and |
| their own corporate successes (Finland and Nokia, | | | | mentoring organizations encourage the attempt to |
| France and Schlumberger, Chanel, Ireland and | | | | create opportunity for new enterprises. The result is a |
| Waterford, etc.) No country, however, sports the depth | | | | wildly vigorous stream of new product, invention, |
| and variety of colossal world brands as the United | | | | service and enterprise seeking to capitalize on the |
| States. | | | | American economy's vigor and need for constant |
| So what accounts for the amazing growth and | | | | sources of growth. All of this occurs while the risk of |
| breadth of successful American enterprises in a very | | | | failure remains daunting for new start-ups. |
| competitive global marketplace? And, what makes the | | | | The growth of the American economy can be |
| American field of play so different and compelling as a | | | | attributed to the constant stream of small companies |
| job, profit and opportunity generator? There are many | | | | supplying ingenuity, new products and rapidly growing |
| reasons that can explain parts of the template for | | | | sales and income streams. Virtually no new jobs have |
| success. However, an alpha element is that the United | | | | been added in Europe over the past two decades. In |
| States system does not permanently cripple an | | | | 2005, America generated over two million new jobs |
| entrepreneur who has experienced failure, even | | | | alone. |
| several failures. | | | | Growth of the United States economy is not being |
| Many successful entrepreneurs, while enjoying the | | | | driven by the mature multi-national companies |
| fruits of their successful efforts, have also suffered | | | | associated with prosperity in the past. IBM, GE, General |
| the agony of failure. The American model does not | | | | Motors, Delta, Delphi, and dozens of other formerly |
| insure the right to succeed, jut the right to try. This is | | | | powerhouse firms are downsizing, firing employees |
| not true in most other capitalist countries. Failure is not | | | | and trying to re-invigorate their static business models. |
| an option. Barriers to entry are high. Taxes, fees, | | | | The growth of thousands of small businesses entering |
| regulations and restrictive covenants are almost | | | | this vibrant marketplace is the real generator of |
| universally more difficult than in America. | | | | growth, jobs and profits. The reality that many fail and |
| The opportunity to fail is not something that any | | | | a few succeed is the strength of the system. |
| entrepreneur initially considers as an asset. However, it | | | | The high barriers to entry applied by so many of our |
| must be considered that most new enterprises do not | | | | capitalist competitors minimizes their ability to be |
| succeed. Business closings and bankruptcy is very high | | | | creative, innovate and take appropriate risk/reward |
| for new enterprises. Many entrepreneurs, having | | | | decisions in this brutally competitive global market. This |
| suffered the disappointment of failure, simply move on | | | | attempt to insure success is actually the death knell of |
| and look for a regular source of income. Real | | | | real opportunity. |