U.S. entrepreneurs specialize in building innovative businesses that keep the economy dynamic and productive, according to the seventh annual U.S. Global Entrepreneurship Monitor (GEM). GEM is directed by Babson College and London Business School.
More than in any other nation, U.S. entrepreneurs are motivated by opportunities in what GEM researchers call 'high-potential entrepreneurship' — fast growing, new ventures involved in the latest technologies and knowledge-transfer businesses. Nine out of ten U.S. entrepreneurs are "opportunity entrepreneurs"; only one in ten U.S. entrepreneurs start a new business out of necessity, where there are no better choices for work.
Expectations of new job creation from startups and established businesses hit record levels in 2005. There are significantly higher numbers of start-ups and new business owners providing jobs compared to 2003 and 2004. This positive trend indicates a favorable change in the U.S. business environment towards more and larger, new businesses.
U.S. entrepreneurs need $70,200 to start a business. Entrepreneurs contribute 67.9% of that amount to their ventures. Informal capital — $92.7 billion in about 3.3 million companies at $27,100 per company — is sufficient to meet the demand in the US.
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