Why is it more difficult to become bigger and stronger in the start up company

NetEase Francisco June 16th MIT news, "Technology Review" (Technology Review) released "New York guest" writer James · Sumwiecki (James Surowiecki) the article said that although the past few years has attracted venture capital venture entrepreneurs will be sought after, but the company bigger and stronger the difficulty is bigger. What is the reason behind this? What does it mean for the future of technological innovation?

the following is the main content of the article:

look at the situation in the United States in recent years, the city, it is easy to think that we are living in the entrepreneurial countries. Thanks to digital tools straight down the cost and increasing popularity, and the difficulty of raising early stage decreased, we witnessed the "economist" said the "Cambrian explosion moment": digital industry startups such as emerged like bamboo shoots after a spring rain, every kind of products and service are numerous".

, for example, between 2007 and 2012, more than doubled the number of Silicon Valley companies who received seed funding from investors. In the past 5 years, the United States has reached a staggering $238 billion of venture capital, the current Unicorn (valued at $1 billion start-up companies) as many as 200 companies.

reduce the number of entrepreneurs

, however, many economic researchers are now talking about a much more bleak story: the number of American entrepreneurs is actually shrinking, and has been shrinking for decades. Two economists, Ian · Hathaway (Ian Hathaway) and Robert · (Robert Litan); Litan wrote in a 2014 Brookings paper, 1978 to 2011, less than a year the proportion of American firms fell by nearly half, during the period from 2007 to 2009 the economic recession is falling sharply, then only a slow recovery. According to the U.S. Department of Commerce, since 2000, the number of new businesses created by Americans has fallen sharply, and the proportion of U.S. employees who work for less than a year is also.

it is true that in 2013 the number of Americans who founded businesses was much less than that of the population in the year of 1980. This is not only because of the aging of the U.S. population – compared to the past, the age of all Americans seem to have weakened entrepreneurial intentions. As Mr Hathaway and Mr Tan say, this decline has been seen in all sectors of the U.S. economy, even in the high-tech sector".

is it possible to say that the United States is no longer willing to venture?. The number of new companies is really low, but this is largely due to the reduction of what economists call "food and clothing" companies. The founders of the company do not want to do bigger and stronger, they just want to do their own thing, to get some degree of financial independence, no need to look for someone else to work face, and so on. In recent years, the data show that the kind of entrepreneurs to reduce.

< >

Comments

Leave a Reply

Your email address will not be published. Name and email are required