WHY ARE AMERICANS AFRAID OF STARTUP?

To become the next Bill Gates or Mark Zuckerberg, Americans need courage and start a company. But they did not do that. What is the reason for this?
According to CNN, startup in the US is at the lowest level in nearly 40 years. Only 452,835 new businesses were born in 2014, according to the latest census data released by the country. This is much lower than the 500,000 to 600,000 new businesses that open each year in the US from the late 1970s to the mid-2000s.
“There is a long-term decline in entrepreneurship,” said by Arnobio Morelix – senior research analyst at the Kauffman Foundation, which tracks startups. The Great Depression is a “killer” for startups. Americans don’t start new companies because they have little money and the courage to do so in those bleak economic days. At that time, there were expectations that American business spirit would increase again when the economy recovered.
The big question is why this situation is and how it affects jobs. Historically, new US businesses are the ones that hire the most employees. Here are a few key reasons, according to experts like Morelix and Zandi.
1. “Walmartization” of the United States: There is a big change in the chains nationwide, escaping from small and old shops. Small businesses find it difficult to compete with Walmart affiliates on price, because they lack the infrastructure needed to source cheap goods from abroad. Software outsourcing and automation also “robs” the jobs of young companies that used to do business by providing local accounting.
2. Regulation: Opening a business, even just a simple store, requires more and more licenses and licenses. Think of the fact that there is no new bank since the crisis and when Wall Street Financial Reform and Consumer Protection (Dodd-Frank) were passed. Businesses also put a lot of “do not compete” words in their contracts, to prevent current employees from quitting and starting their own businesses, at least for a few months or years.
3. Big companies doing more business: The startup culture is now imbued with large companies, such as Google and Tesla. They have a wide range of research and testing businesses where young people are interested in joining instead of doing it on their own.

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