In the Eyes of the World, the U.S. Is the Peak of Entrepreneurship
Two weeks ago, in Milan, Italy, the Global Entrepreneurship Congress brought together entrepreneurs, support organizations, policymakers, researchers, and others from over 170 countries. The annual gathering aims to share lessons about what is or is not working in different countries to help entrepreneurs.
In addition, this year the GEC helped demonstrate two things. First, it illustrated the power of the entrepreneurial spirit around the world to offer economic hope. Second, amidst concerns over American decline and retrenchment, the GEC is a reminder that the United States continues to be admired and emulated for its entrepreneurial capitalism.
It often feels like the United States has reached a moment of "peak entrepreneurship." In Silicon Valley many argue over whether we're in another startup bubble, as venture capital funding and angel investing have risen rapidly and valuations of tech startups keep ballooning. Only a few years ago, accelerator programs were nearly non-existent-now, there are hundreds around the country. Every week seems to bring a new Startup this-or-that and, on college campuses, entrepreneurship is among the fastest growing curricular areas. Surely, all this will soon run out of steam?
The GEC helps curb such cynicism-some of the world's most distressed places sent representatives to Milan, who spoke powerfully about what entrepreneurs could accomplish for their country.
In Greece, for example, entrepreneurship has traditionally been conflated with corruption and the informal economy. The economic depression and sovereign debt crisis have overturned this view and, in an economy struggling to provide meaningful job opportunities, entrepreneurship is now seen as a key solution to Greece's troubles. Over a dozen accelerators and incubators have been formed in just the past few years.
In another challenging environment, Ukraine, entrepreneurship organizations are making astounding progress in supporting entrepreneurs, connecting mentors and investors with entrepreneurs, and building on the country's legacy of strong education and information technology skills.
At GEC, an individual from Palestine discussed his efforts to build a vibrant entrepreneurial ecosystem amidst political strife, as did someone from Lebanon. The minister of small business development in South Africa spoke powerfully about entrepreneurship as a way of building bridges across gender and ethnic divides. These efforts are not confined to developing countries-the South Korean government is making a major push to encourage startups there and two new philanthropic foundations have been established to support entrepreneurship.
In many of these places, entrepreneurship is viewed as the last best hope for stimulating economic growth and challenging stagnant political institutions. Here, one might see new opportunities for American policy. In his newest book, foreign policy expert Joseph Nye asks, "is the American century over?" Nye answers in the negative in part because of America's cultural pull, or "soft power." Entrepreneurial capitalism in the U.S. is a large piece of that attraction.
Entrepreneurship is not exclusively an American phenomenon (it is a French word, after all), but it is closely identified with the United States. Both the Obama and Bush administrations recognized this and established efforts to promote entrepreneurship around the world.
More can be done. In many countries, the challenge is not appreciation of entrepreneurship-it is government resistance to entrepreneurs and protection of established companies. At a time when U.S. foreign policymakers are tying themselves in knots over the Asian Infrastructure Investment Bank, promoting pro-entrepreneurship policy reform across the world will leverage American soft power and benefit the American economy, too.
On the domestic front, policy changes will signal to the rest of the world that America takes seriously its perceived status as a beacon of entrepreneurial hope. The United States reaps credibility because of the number of people who come here to study and the number of immigrants who build successful American companies. Yet the failure of the U.S. government to reform immigration law-and, in particular, create new pathways for more immigrant entrepreneurs-undermines that status.
Additionally, two free trade agreements being negotiated-the Transatlantic Trade and Investment Partnership and the Trans-Pacific Partnership-will likely carry huge benefits for young, small, and growing companies in the United States. The Administrator of the Small Business Administration, Maria Contreras-Sweet, recognizes this opportunity and has been working to make sure the trade agreements include supportive provisions for American entrepreneurs.
The GEC is a reminder of the power of human abilities unleashed through entrepreneurship. In war-torn countries, in economic basket cases, and in places barely hanging on as nations, entrepreneurship can unify and provide hope. Next year's GEC will take place in Medellin, Colombia, where entrepreneurship has helped rescue the city from drug kingpins.
We may or may not be approaching "peak entrepreneurship" in the United States, but America remains, in many eyes, the peak of what entrepreneurship can achieve. Our leaders should take note, and take advantage.
