The American Dream


Published: November 17, 2019

In the 21st Century

Entrepreneurship and the Small Business Owner

The comments of Wicks (2003) and his argument on the works of Ford Motor Company, and how Henry Ford started the middle class with the manufacturing jobs he supplied to the Detroit area and later nationwide would have a phenomenal economic effect on the world and its economy. As one who lived in the Detroit area for forty years, this researcher can attest to a workforce that Ford built, and the uneducated or non-college individual was the middle class in Detroit. Detroit was the home of what was called the Big Three (General Motors, Ford Motor Company, and Chrysler), at one time, three of the most massive corporations in America. The automotive industry is arguably an American innovation and the builder of a middle class that started its demise in the 2000s, and when it fell, it took with it the middle class-the factory workers. To this day, America has not recovered from the loss of the factory worker. The financial crisis of 2007-2008 hit Detroit hard, and if not for the government bail-out, this crisis would have devastated an industrial and, if left onto its self as some wanted, could have very well bankrupted America.

Ford was the only one of the trio in the auto industry that was financially self-contained and did not need any help from the government to keep its doors open, unlike GM or Chrysler (Wicks, 2003). Alfred Marshall, a theorist who wrote several books on economics, his influence on conventional economics was the development of comparative statistics methodologies for examining the adjustment of industries from an equilibrium standpoint that characterized firms that were experiencing a demising continual increase or decrease to return to scale. Later his works would become controversial, and his work suggests revising for clarifications of meaning that was, promoted (Ajiakpor, 2004).

Marshall’s view of entrepreneurship had different parts or tasking entrepreneurial activity that in the process of equilibrium and full competition, there was no spot for the entrepreneur as an economic actor or creator in the marketplace (Ajiakpor, 2004). Israel Kirzner, who viewed innovation or for the most part, most changes were merely an incremental improvement on what was already in the domain, such as the replacement of a metal part with plastic. Moreover, millennial entrepreneurs like Mark Zuckerberg, whose creation of Facebook and social media is still writing history on its usage from advertising to marketing because this is where the younger generation hangs out. Moreover, Facebook has been shown in the past to affect the presidential election, a propaganda tool for one of our adversaries to control our democratic way of life for political purposes (Chepurenko, 2015).

Summary

 Since the formation of the US, which goes back to 1776, most of the founding fathers were entrepreneurs. The word entrepreneur borrowed from the French in 1850 (Engelman, 2018). Entrepreneurship and small businesses are not necessarily the same; both have risks; however, innovation is not always present with a small business owner, whereas change is paramount to entrepreneurship. Furthermore, there have been three industrial revolutions, and arguably, we are in the fourth.

The origin of entrepreneurship, how it molded the structure through innovative individuals to assist government organization with the boosting of the economy due no government has all the resources to take care of its people as the communist nations have found for there will be protest due to shortages of one sort or another. The freedom to control one’s destiny is a prevailing attitude of what people want, and entrepreneurship is the vehicle that can get them this freedom, not perfect, but is the standard of developed countries. Entrepreneurship has many theories and theorists who add to research and understanding what entrepreneurship is and how it can contribute to society. Entrepreneurship and its various stakeholders, communities, development of jobs, and yes, pay taxes to the government, which protects it from foreign adversaries. Consider separating this sentence into separate clauses.

Contemporary Small Family Business

Thus, this researcher sees an area that needs exploring whom these 400,000 entrepreneurs have failed? So who are these people, what percentage was non-white, family businesses, or ethnic origin including, what was the educational attainment, and did they have experience in the field they were starting the business? These are appropriate research questions that future research needs to explore. Ma, Zhao, Wang, and Lee (2011) argue most studies in this area are focusing on demographics, and social impact on ethnic entrepreneurship and not on the roles entrepreneurs play in the business environment. Are there any studies that show the percentage of non-whites that start a new business, what percentage are immigrants and other research questions to find some consensus on why a massive amount of failures. Recently attention on small family-owned companies, researchers are looking into there importance in how they not only perform to non-family business but the various strategies that are, used in the operation of the firms (Ibrahim, Angelidis, & Parsa, 2008).  

Ibrahim et al. (2008) argue that there is unbalanced research on the more critical organizations over that of small family businesses or small businesses. Research has shown that family businesses are responsible for some 64% fo the GDP and 62% of the workforce (Ibrahim, Angelidis, & Parsa, 2008); worldwide, the family business employs half of all worldwide employment. 84.4% of manufacturing companies in Germany are family-controlled (Ibrahim et al. 2008) Ibrahim (2008) continues with that, not all family businesses are small, examples include Walmart, Fiat, BMW, and 34% of Standard and Poor’s 500 are family businesses, who own some 18% percent of the outstanding stock. When one defines what a family business is, it is, centered on the governance of, or the management which is in the hands of family members who intent is to shape the vision of the firm to influence the firms to sustain the wishes of future family members not yet known (Ibrahim et al., 2008). Then there is another area that needs researching, and that is the percentage of the ethnicity of the non-white family business that starts businesses in America.

Ethnic Entrepreneurship

There appears to be an ethic problem here in America, where the slogan of what now printed on Lady Liberty challenged. This great republic of ours has a history of immigrants, whether they were brought here unwillingly, or came through Statin Island because the U.S. needed immigrant workers. Thus, we are born to research that needs conducting, studies on what percentage of non-white workers and business startups that are non-white, and what percentage of those are in the 400,000 business failures ranks. Ibrahim et al. (2008) show that family businesses have a competitive advantage over those who are not family-oriented. Family businesses will cater to their customers differently as they get to know them by name, understand their concerns, and more friendly interaction to resolve them.

Sarfati (2009) argues that America has lost its competitive edge in high-skilled workers or workforce with its domestic citizens, and it needs immigrants to be a superpower continually. He states that America rose to its economic power or global recognition through its highly skilled workforce. Just the addition of one year of education raises the GDP 5% since 2008 (amid the Great Financial Meltdown of 2007-2008) the Baby-Boomers are retiring, and this leads to a drain on the educational pool, and skilled workers left in the workforce replenishing. Sarfati (2009) contends that other advanced countries or economies are seeking foreign talent while the U.S. has become dysfunctional in this area what has made it the economic power that it is. Ethnic entrepreneurship needs more work in this area of research showing how this diversity in talent and culture has continued an economic effect on the American economy. Ethnic entrepreneurship and its reduction or limitation will have a financial drain on the global standing in the not too distant future.

Entrepreneurial Education

Guo, Chen, and Yu (2016) examines the worth of education in the U.S. as one obtaining a college education, and its impact on entrepreneurship. The research question is, is it worth it? Their research proved that obtaining a college degree will enhance one’s opportunity to being a successful entrepreneur. Their research study on a sample study of 1.2 million people who incorporated over those who were not. Their findings were that if one had finished a four-year institution, one’s economic parity over those who only went to a two-year institution or did not graduate from a four-year institution, would make more money or were prosperous in the commercial environment more often. Although the study in this area is mixed, the relationship for those who had gone to college and graduated over those who had no college education or did not graduate is favorable to those who did over those who did not (Guo et al., 2016).

These findings are consistent with minorities, who have gained a higher education are more likely to succeed as entrepreneurs over those who lack knowledge and experience, and who did not invest in themselves, or that of human capital (Guo et al., 2016).  When referring to human capital, it consists of skill sets, knowledge, investment in formal training, work, and other experience that boost one’s economic being. The reality of discrimination is still alive; however, subtle, in its new application, entrepreneurship is a way for those who have been discriminated against as a way for them to participate in the American Dream of working for themselves (Guo et al., 2016).  Moreover, and sharing the risk of being responsible for there own destiny over someone else controlling them. Thus, the more education one has, the more of the opportunity or chances that entrepreneurship would be the likely chosen career, for this career choice builds wealth, over being a worker for someone else (Guo et al., 2016).                                                           

Summary

Continued research, in the direction of entrepreneurship, is needed. The research question of why do so many entrepreneurs fail is one that needs an answer. Haag (2013) made a statement that of some 600,000 new businesses that start annually, and of them, some 400,000 fail within five years, why is the failure so blatant? These questions need answering, for the answering of the said question,  increased entrepreneurial success, and point to areas that entrepreneurs should avoid. However, the shunning of a college education should not be one area that one should be; avoided at all costs. Evidence has shown that the more education one has, the better the success ratio one has in the operation of there enterprise or small business.

Entrepreneurship is an economic boost to national economies; it is a builder of jobs and entrepreneurs make more than those who work for others, and the builders of enormous wealth. Those who do not have a college education (four-years or more) are more prone to failure as an entrepreneur than not. There seems to be a move by this current administration against immigrants, is there reduced admittance to the U.S.; however, evidence shows that immigrants are the backbone of what and have helped America to be a superpower in the global environment. The truth of the matter is, anyone beyond the Native Americans is foreigners or immigrants to America, so is this not being hypercritical on who is an immigrant in America? Moreover, in words inscribed on Lady Liberty, “Give me your tired, your poor, your huddled masses yearning to breathe free. The wretched refuse of your teeming shore. Send these, the homeless, tempest-tossed to me; I lift my lamp beside the golden door!” (Lazarus,    1883).