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Comparing doing business in europe and the us

Foreign Business

Executive synopsis

The focus of this daily news is the worldwide business and entrepreneurship. The paper is aimed at performing a comparison analysis from the entrepreneurship in Europe and in america. The daily news will evaluate various factors influencing the entrepreneurship in Europe and US. To be able to achieve, the paper will certainly support the argument with facts from a relative analysis of numerous industries with the United States and Europe. Finally, the newspaper will attract the conclusion based on the point built throughout the paper.


In the intercontinental business environment, each region, continent and region is unique in its very own way. That they differ when it comes to opportunities, features, and infrastructures. When picking the business place to go for their investment, entrepreneurs consider various elements that can help the success and profitability with their business within a given nation (Styles and grey, 2006, s. 11). Depending on the industry and area of field of expertise, the United States plus the European Union will always be the target of types of entrepreneurs. This paper for that reason is intended to evaluate the entrepreneurship in Europe compared to the Us.


The term entrepreneurship simply means the willingness and the capacity to produce, organize, develop and take care of the business assets with the aim of making profits (Styles and Gray, 2006, p. 14). Entrepreneurship can also be defined as starting a business or taking on risks hoping to obtain growth in the future or the commitment to turn the idea into a successful company or business. Entrepreneurship encompasses the complete activities involved with a provider’s operations from the initial level of generating smart ideas up to the execution and marketing the business enterprise or reaching customers (Styles and Gray, 2006, p. 18).

You will discover four types of entrepreneurship depending on the scale of their actions, the level of their existence cycle and their areas of specialty area. These types of entrepreneurship are small enterprise entrepreneurship, the scalable startup entrepreneurship, the best company entrepreneurship as well as the cultural entrepreneurship.

Entrepreneurs happen to be people who possess some unique and specific features that differentiate them from the other people (Ahmadkhani et ing., 2013, s. 8). These types of characteristics range from the creativity, creativity, perseverance, and risk choosing. In addition , internet marketers are folks who see problems as opportunities, and while other folks are stressing, they seek solutions (Dahl strand and Stevenson, 2010, p. 19). This means that internet marketers are risks takers and in addition they have the ability to look into the future. For example, entrepreneurs will be people who are able to see the potential in points that seem to be valueless (Ahmadkhani et approach., 2013, p. 22). They will therefore venture into the future without the fear of the uncertainty.

How does a failing affiliate marketer become a business owner in the US and Europe ” obstacles and incentives

Becoming a powerful entrepreneur is an excellent task since it involves many factors that range from the personal and specific skills and capabilities to the industrial and business environment factors (Cumming and Li, 2013, l. 5). To be able to understand what it will require to become a business owner in the United States and Europe, it is vital to understand each on the specific level by seeking to describe the obstacles and incentives of entrepreneurship.

Entrepreneurship in the usa


Being the world’s highly effective economy, america offers endless opportunities and motivation to entrepreneurship (Bjerke, 2007, p. 20). For example , operating in the united states economy gives entrepreneurs use of the most fully developed venture-capital industry. In addition , the United States has enormous resources with regards to qualified and skilled individual capital and also other natural solutions that are necessary for business (Cumming and Li, 2013, s. 9). America is advanced in various regions of business including the entrepreneurial culture, the business infrastructures as well as economic sector (Johnson, 2004, g. 7). This kind of facilitates the success of organization transactions and enhances the financial security of entrepreneurs (Bjerke, 2007, p. 24). The company environment in america provides internet marketers with enough freedom on their business functions and the ability to run their business in manners that prefer them. Additionally it is important to point out the strong relationship involving the business industrial sectors with the US universities (Cumming and Li, 2013, s. 21). This kind of enhances the entry to the most recent innovation and it is rational to say that the US colleges are the monetary engine of this country.

The facilities offered to business owners in the United States entice thousands of business owners from all over the world to invest in the nation (Bjerke, 3 years ago, p. 29). For example , the US is the hub of heightened technologies. In addition, the migrants policy of the United States encourages entrepreneurship in many ways as it brings new talents, new minds and new innovative developments from around the globe to the US (Johnson, 2004, p. 13).

Limitations of entrepreneurship in the United States

However the United States is known as a country of immense opportunities for entrepreneurship as previously mentioned, there are also a few drawbacks that reduce and affect the prospect of becoming good entrepreneurs in the area (Ogbolu, Singh and Wilbon, 2015, p. 35). These limitations are the cost of time, the higher taxes, and the working costs that are extremely loaded with the US in comparison to other countries. The higher level of competition is yet another big problem that business owners are up against in the United States (Zahra et ‘s., 2009, p. 16). Competition is a threat to business owners most specifically startups or perhaps small business that have limited resources and experience in the industry. This impairs their particular profitability in lots of ways and can make closure of business (Zahra et approach., 2009, g. 20). Different limitations happen to be requirements related to the safeguard of the environment and corporate cultural responsibility. In the US, the well-known issues of green business is changing the business environment as they are making companies and business people to introduce innovative ways of doing their businesses taking into consideration the effect of their actions on the environment (Saha and Darnton, june 2006, p. 54). This increases the cost of working in the US and it has a great role to experience in the with regard to products or services proposed by the company to its consumers.

Entrepreneurship in Europe


Entrepreneurship is one of the main contributors towards the European economic climate. The business people in Europe are enthusiastic by numerous opportunities and business environment that favor entrepreneurship. Several member countries of the European Union introduced inspiration based policies for the entrepreneurial economic system. In addition , there is also a wide industry of products or perhaps services in Europe that is available for all types of products (Corbetta, Minichilli and Salvato, 2013, p. 20). The getting power of the population and the growing economy are factors impacting on the entrepreneurship in European countries. There are many work at home opportunities in European countries that effect and catch the attention of many entrepreneurs by around the world. Through the cultural industry up to the food business opportunities, there is no doubt that the Western market is one of the most promising spots for successful entrepreneurship (Smallbone and Welter, 2012, l. 15). The business enterprise environment in Europe offers security for the business enterprise and there are enough infrastructures several types of business groups. Various plans introduced and implemented by governments add significantly in protecting the eye of entrepreneurs in The european countries (Corbetta, Minichilli and Defalcato, 2013, p. 24). Also, it is important to which there accessibility to highly skilled and qualified labor force enhances the probability of doing business in Europe.

Restrictions of entrepreneurship in Europe

Some of the limitations to entrepreneurs in Europe include the declining economic system, the aging populace, the intercontinental business coverage and the working costs (Smallbone and Welter, 2012, g. 17). In the European economy, it is not easy intended for startups to survive due to numerous reasons. Much like in the United States, the expense of operating in The european union is quite large and the requirements of beginning a business will be challenging. This is usually a limitation to small business owners who have not any sufficient capital to meet those requirements when it comes to standards required and other statutory requirements. Furthermore, the expenses of time are extremely full of Europe and for that reason it takes huge capitals to get entrepreneurs to attract qualified workers (Corbetta, Minichilli and Defalcato, 2013, p. 28). It is necessary to note that due to the amount of technology in Europe, the technical assistance is key to the successful entrepreneurship. On the other hand, the competition in Western european business environment is excessive. Even though this can enhance the top quality of services and products offered by businesses in The european countries, it can set a lot of pressure on companies, especially when competing in prices (Smallbone and Welter, 2012, s. 18). Therefore , companies that contain no solid business collection may not endure which might be a limitation to entrepreneurship in Europe.

Case study analysis: A comparative examination between Start-ups in the United States and Europe

US vs Europe

Before talking about the difference between sectors on both equally sides there are some tips to consider. There is a massive difference between the US Startups and Europe Startups. This is intended to demonstrate the most attractive place for entrepreneurship between the United states of america and The european countries since use of funds is one of the major problems of Startups (Duong, 2016, para. 1). From the investors’ perspective, generally there exist 3 key distinctions between US and Europe star-ups.


When compared to US online companies, the new entrepreneurs in European countries have the ability to raise money than those in the United States. This is due to the fact that Europe has a large number of angels who are going to invest in start up unlike in the usa where business people are struggling to raise money or have limited funds (Duong, 2016, em virtude de. 2). For example , there are several start-up capitals in Tel Aviv, Birmingham, and Bremen that end up with a remarkable network of crucial players to get a startup community. This clarifies that startups in The european union have many options than startups in the United States.

Earnings First Versus Growth initially

Contrary to in The european countries where it truly is easier to supply funds for startups, the us is the best in financing the growth stage (Zahra et ing., 2009, p. 18). There are significant enterprise capitals for the growth level of companies in the United States within Europe. This is due to the fact that the us is a big market and companies require enough assets to be competitive. Therefore , shareholders are willing to spend money on these little enterprises in their growth stage hoping that they may grow and turn global businesses (Duong, 2016, para. 4). Different reviews revealed that Western european investors concentrate on revenue than growth that makes it challenging for startups to get endeavor capitals to get growth stage. This gives the US Startups the competitive advantages to master the global sector and to sink into the market effortlessly.

Sequential Go-to-Market strategy

Another aspect that plays a role in the growth of entrepreneurship in the United States than in The european countries is the character and the attributes of the industry. For example , america market is one particular unique industry that is easy to operate in, unlike the European industry that is seen as diversity. This kind of diversity plays a role in the sluggish growth speed of new businesses in The european union. Startups will be faced with the requirement to build up relationships in different countries as well as the need to translate items into a lot of languages employed in different countries of The european union is a big challenge when compared with US online companies (Duong, 2016, para. 5). This means that in Europe, it can be difficult or possible to access almost all countries at the same time through internet sites or any different platform. Startup companies in The european countries are also up against the difficulties of going through new geographic markets since it requires those to have a fresh experience, changing products to the markets as well as forming partnerships (Zahra ain al., 2009, p. 126). These are the main differences among US startups and the Western european startups. In fact , the reason for slower growth speed of Western european startups is that there are no venture capitals for development stage. In addition , the market structures are quite different that difficulties and drawbacks inside the European marketplaces may prevent the development and growth of the startups (Duong, 2016, em virtude de. 6). Therefore, the fear of uncertainty in Europe potential clients the endeavor capitals to consider the revenue initially than expansion whereas alternatively, the US shareholders are quite upbeat on the long term growth and profitability as compared to the present plus they are ready to consider possible hazards in taking the startup to another step.

The auto industry European countries Vs US

In contrast, the US auto industry is definitely miles in advance and provides a cost edge over the Western european industry since the later contains a growing efficiency and scientific competence. Lately, the US suppliers have been elevating their production than any kind of its competitors (Schulz, 1997, p. 6). This means that the united states is ahead in all aspects such as technical and better quality process than its competition such as The european union and The japanese.


Given the findings above, there is no doubt the fact that United States gives more chances for internet marketers than The european union. This can be seen as the features offered to startups in the US to grow and also to expand unlike in The european countries where there are not any investors whom focus on growth. In addition , you will find more limitations to entrepreneurship in The european countries than in the us (Schulz, 1997, p. 9). Furthermore, the comparison among automobile companies indicated the US is miles ahead of its competitors such as The european countries and The japanese.


Figure one particular: Illustration of nations with the most venture capital investment

The illustration over demonstrates the positioning of the United States on a global scale in terms of capital raising investment. Since indicated, america is the largest country of investment compared to the economic strong countries of Europe and Asia with likes of India, His home country of israel, and Canada. This is a clear indication in the advantages and opportunities designed for startups in the usa than in some other country.

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Category: Business,

Topic: Business environment, Business owners, European countries, European Union, United States,

Words: 2462

Published: 12.30.19

Views: 401

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