EY: Three reasons to be an entrepreneur in the US
As the starting ground for some of the world's biggest and most popular new businesses, the United States has a lot to offer up and coming entrepreneurs.
With the likes of Uber, AirBnB, Pinterest and WeWork first gaining 'unicorn' status in their home states of California and New York alone, the business reach and precedent for success set by US enterprises is a convincing factor in the country's attractiveness for entrepreneurs.
According to the EY G20 Digital Entrepreneurship Barometer, there are three factors for which the US is the leading startup destination.
1. Entrepreneurial culture
A positive public perception of entrepreneurship, a good understanding of technology and clarity in intellectual property (IP) rights makes the US a friendly place for startups.
Silicon Valley and New York City are globally renowned as prime locations for starting an enterprise, particularly in the technology sector. According to the 2016 Kauffman Index of Startup Activity, Austin, Texas is also a rising star, with a higher percentage of the population becoming entrepreneurs.
Vinny Catricala CA, Driver Operations and Logistics Manager at Uber, spoke to CA Today about the startup culture in the New York technology scene.
He said: “You’re encouraged to be yourself. We’re more about the results you’re delivering and the quality of your work versus your appearance or facetime in the office. In the tech culture, there’s no beating around the bush. You’re encouraged to be direct rather than sugar coat the situation, and the best idea always wins."
2. Digital skills and entrepreneurial education
Access to educational resources, including tech and science skills, is leading young people to successfully start a business, according to the EY Barometer parameters.
The Network for Teaching Entrepreneurship (NFTE) is a New York-based organisation that provides entrepreneurial education to children in low-income communities. The programme was recognised by EY as one of the more impactful innovations in encouraging young people into their own businesses.
3. Digital knowledge base and ICT market
Talent and a prevalent network of entrepreneurs, particularly in 'clusters' within start-up hub cities, boosts the entrepreneurial ecosystem by providing easier access to mentoring and investment opportunities.
The Kauffman Index identifies a total of 40 metropolitan areas in the US that provide such opportunities, naming the following top five cities:
- Austin, Texas
- Miami, Florida
- Los Angeles, California
- San Francisco, California
- Las Vegas, Nevada