Cultural Diversity of Entrepreneurship
Cultural diversity plays a significant role in entrepreneurship, impacting the way businesses are created, operated, and succeed in various regions and markets around the world. Here are some key aspects of the cultural diversity of entrepreneurship:
- Young Entrepreneurs
- Women Entrepreneurs
- Minority Entrepreneurs
- Immigrant Entrepreneurs
- Part-Time Entrepreneurs
- Home-Based Businesses
- Family Businesses
- Corporate Castoffs
- Corporate Dropouts
- Social Entrepreneurs
Young entrepreneurs are leading the way in business startups. Many young people, dissatisfied with their corporate prospects and eager to take control of their destinies, are choosing entrepreneurship as their main career path. Generation X (born between 1965 and 1981) is especially entrepreneurial, with about 80% of all startups attributed to them, making them the most entrepreneurial generation ever.
The trend shows no signs of slowing down, even among teenagers and those in their early 20s (the Millennial Generation, born after 1982), who are increasingly interested in entrepreneurship. Entrepreneurship camps for young aspiring business owners are popping up nationwide, helping them realize their dreams.
For instance, Natalie Morris, a high school sophomore, created a successful line of custom purses and handbags, earning her the South Carolina Young Entrepreneur of the Year Award. With young talents like Morris, the future of entrepreneurship is promising.
Women entrepreneurs have made remarkable strides despite workplace discrimination. Small businesses have played a leading role in empowering women economically. Many women have found that starting their own businesses is the key to breaking the “glass ceiling.”
In fact, women are starting businesses at a rate twice the national average. While these businesses tend to be smaller and require less startup capital, they have a significant impact. With nearly 11 million women-owned companies in the United States employing over 19.1 million workers and generating over $2.5 trillion in annual sales, women now own about 48% of all privately held businesses in the country.
Although they grow more slowly than businesses owned by men, women-owned businesses have a higher survival rate and are often led by highly educated individuals with managerial experience in their respective industries.
Another rapidly growing segment of the small business population is minority-owned businesses. Hispanics, Asians, and African Americans are the minority groups most likely to become entrepreneurs and minority entrepreneurs are launching businesses at a rate that is 1.5 times the national average. Like women, minorities cite discrimination as a principal reason for their limited access to the world of entrepreneurship.
Minority-owned businesses have come a long way in the last decade, however, and their success rate is climbing. A study by the Small Business Administration reported that minorities now own 15 percent of all businesses.
Minority-owned businesses generate $591 billion in annual revenues and employ more than 4.51 million workers with a payroll of more than $96 billion. The future is promising for this new generation of minority entrepreneurs, who are better educated, have more business experience, and are better prepared for business ownership than their predecessors.
The United States has always been a melting pot of diverse cultures and many immigrants have been drawn to this nation by its promise of economic freedom.
Unlike the unskilled “huddled masses” of the past, today’s immigrants arrive with more education and experience. Although many of them come to the United States with few assets, their dedication and desire to succeed enable them to achieve their entrepreneurial dreams.
Starting a part-time business is a popular gateway to entrepreneurship. Part-time entrepreneurs have the best of both worlds: They can ease into business for themselves without sacrificing the security of a steady paycheck and benefits. Approximately 15 million Americans are self-employed part-time.
A major advantage of going into business part-time is the lower risk in case the venture flops. Many part-timers are “testing the entrepreneurial waters” to see whether their business ideas will work, whether there is sufficient demand for their products and services, and whether they enjoy being self-employed. As they grow, many part-time enterprises absorb more of the entrepreneur’s time until they become full-time businesses.
Home-based businesses are booming. Fifty-three percent of all businesses are home-based, but about 91 percent of them are very small with no employees other than the principal. Several factors make the home the first-choice location for many entrepreneurs:
- Operating a business from home keeps start-up and operating costs to a minimum.
- Home-based companies allow owners to maintain a flexible lifestyle and work style. Many home-based entrepreneurs relish being part of the “open-collar workforce.
- Technology, which is transforming many ordinary homes into “electronic cottages”, allows entrepreneurs to run a wide variety of businesses from their homes.
- Many entrepreneurs use the Internet to operate e-commerce businesses from their homes that literally span the globe.
In the past, home-based businesses tended to be rather unexciting cottage industries such as crafts or sewing. Today’s home-based businesses are more diverse; modern home-based entrepreneurs are more likely to be running high-tech or service companies with millions of dollars in sales.
The average home-based entrepreneur works 61 hours a week and earns an income of $63000. Studies by Link Resources Corporation, a research and consulting firm, suggest that the success rate for home-based businesses is high: 85 percent of such businesses are still in operation after three years.
Family businesses are a vital part of our economy, making up 90% of all U.S. businesses, employing 60% of the workforce, creating 78% of new jobs, and contributing to 50% of the nation’s GDP. Some are even among the Fortune 500 companies.
However, they face a significant challenge: management succession. Only 30% survive to the second generation, 12% to the third, and a mere 3% to the fourth generation and beyond. To prevent unnecessary conflicts and losses, founders should plan for management succession well before retirement.
“Copreneurs” are entrepreneurial couples who co-own businesses based on expertise, not gender. This sector is growing rapidly. While managing a business with a spouse might seem challenging, many copreneurs find it rewarding.
Successful copreneurs build a strong foundation by assessing personality compatibility, respecting each other’s talents, sharing goals, viewing themselves as equal partners, having complementary skills, open communication, clear roles, separate workspaces, boundaries, humor, and recognizing that it’s not suitable for every couple. Copreneuring may not work for everyone, but for many couples, it leads to successful businesses.
Concentrating on shedding the excess bulk that took away their flexibility and speed, many large American corporations have been downsizing in an attempt to regain their competitive edge. For decades, one major corporation after another has announced layoffs, and not just among blue-collar workers.
Companies are cutting back their executive ranks as well. Millions of people have lost their jobs and these corporate castoffs have become an important source of entrepreneurial activity.
Some 20 percent of these discharged corporate managers have become entrepreneurs and many of those left behind in corporate America would like to join them. Many corporate castoffs are deciding that the best defense against future job insecurity is an entrepreneurial offense.
The dramatic downsizing of corporate America has created another effect among the employees left after restructuring: a trust gap. The result of this trust gap is a growing number of dropouts from the corporate structure who then become entrepreneurs.
Although their workdays may grow longer and their incomes may shrink, those who strike out on their own often find their work more rewarding and more satisfying because they are doing what they enjoy.
Other entrepreneurs are inspired to launch their companies after being treated unfairly by large, impersonal corporate entities. Because they have college degrees, a working knowledge of business, and years of management experience both corporate dropouts and castoffs may ultimately increase the small business survival rate.
Social entrepreneurs use their skills not only to create profitable business ventures but also to achieve social and environmental goals for the common good.
Their businesses often have a triple bottom line that encompasses economic, social, and environmental objectives. These entrepreneurs see their businesses as mechanisms for achieving social goals that are important to them as individuals.
What is the cultural diversity of entrepreneurship?
Here are some aspects of the cultural diversity of entrepreneurship: 1. Young Entrepreneurs 2. Women Entrepreneurs 3. Minority Entrepreneurs 4. Immigrant Entrepreneurs 5. Part-Time Entrepreneurs 6. Home-Based Businesses 7. Family Businesses 8. Copreneurs 9. Corporate Castoffs 10. Corporate Dropouts.