Article Summary – Entrepreneurs Could Push Economy Forward
Source: Entrepreneurs Could Push Economy Forward
Author: Tammy Joyner and David Markiewicz
Are there any positive results that stem from one of the severest recessions in history? As the U.S. economy slowly heals, are there signs that it will not only recover, but be stronger than before?
Many are watching a trend of rising entrepreneurship that may do just that. In the article, Entrepreneurs Could Push the Economy Forward, authorsÂ Tammy Joyner and David Markiewicz highlight the phenomenon that many Americans –who either have been laid off or who are choosing to leave corporate Americaâ€”are choosing Â entrepreneurship through franchises in record breaking numbers. This article brings to light several very positive developments in the economy that have come about as a result of the rising growth of franchises.
Why is the franchise growth movement of particular interest to economists?
It could be the very solution for not only the lagging economy but also the millions of workers who are critically unemployed–or those unemployed for six months or longer, which make up nearly half of all Americans without a job. Experts cited in the articles claim that entrepreneurship in franchises could be the very key to leading the economy to recovery.
How does this recession differ than past recessions?
In the past, it has been the auto and bank industries which have helped pull the economy out of recession. However, due to devastating blow these industries have taken during the past recession, it will be highly unlikely this time they will lead the nation out of economic duress.
This historic shift from industries to rising entrepreneurs is what will drive the economy to recovery in the future.Â Franchises are an immense part of new businesses driving this shift to entrepreneurship. Experts believe that this movement from the past industrial capitalism to complete entrepreneurial capitalism is an event to be marked on the historic economic timeline.
Why is this movement to franchises so appealing to entrepreneurs?
Franchises are recently offering a myriad of incentives, including lower entry fees and startup costs, to entice new entrepreneurs. And it is working. New business creation is the highest it has been in fourteen years, and even higher than the peak of the tech boom. It is of particular interest to the author that many new entrepreneurs are Americans ages 55 years and older.
Due to the difficulty of raising capital for startup from bank lenders, the lower costs offered by franchises reduces many of the barriers to entrepreneurship. Furthermore, some royalty fees are being waived to entice new owners are well.
As the U.S. economy starts to heal, the authors believe that it is the entrepreneurs who will ultimately bring this nation out of recession using the tool of franchises as the key to accomplishing economic stability and success.