Is American Entrepreneurship Dead?

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How to revive entrepreneurship in America

For the first time in 35 years, American businesses that fail outnumber new businesses being formed, which has led many to question the future of American entrepreneurship. In a recent article, Gallup CEO Jim Clifton cites some hard truths about the net decline in American Entrepreneurship, including the fact that “four hundred thousand new businesses are being born annually nationwide, while 470,000 per year are dying.” That information, coupled with other harrowing statistics, can mean bad news for the American economy.

CPC Infographic (1)

The truth is that the economy needs small businesses and startups to succeed. According to Gallup, during the past two decades, small and medium-sized enterprises have accounted for virtually all new jobs created. Yet, Clifton says that investing in innovation isn’t the answer. The question is, what does it take for new businesses to grow and thrive?

We believe the solution is fairly straightforward. Carver Peterson Consulting works closely with entrepreneurs, startups and small and mid-sized businesses to drive revenue and build strong workplace cultures. Based on our experience, there are three main components that are essential in determining the longevity of an organization.

3 Ways to put your business in a position to succeed

  1. Establish a Purpose Driven Company. A company that has a clearly defined purpose and vision is going to see far more success than one that doesn’t have a clear focus. Without the emphasis on the purpose, businesses will have a more difficult time attracting the right talent and the right customers. Research supports that employees who are more aligned with their company’s identity perform higher on key business performance metrics than do employees who are less aligned. Entrepreneurs that have a concise focus are poised for greater success, and communicating that vision starts with the leadership and moves from the top down. The first step in establishing a successful business is believing in the company mission and purpose, and applying it into every decision the company makes.
  2. Emphasize Culture and Invest in Talent. Entrepreneurs should never underestimate the importance of building a company culture. That means hiring talent that will not only further the company from a revenue standpoint, but will also embrace the mission and vision of the organization. And once the right talent is brought on, it’s important to retain them by playing to their individual talents, something we call valuing differences by understanding strengths. Beyond that, the most successful organizations focus on giving and receiving feedback to routinely track, reinforce and measure the goals of the team—both from a culture and revenue standpoint. Embrace the employees who believe in your overall values as a business, while teaching them how to make your business the best it can be.
  3. Build a Process for Measurable and Repeatable Results. One of the best things a business can do to secure its long term success is establish processes to create measurable and repeatable results to enhance the growth of the business. Our experience shows that organizations that set sales and revenue goals, and develop an action plan to reach them, see an average of 25% more growth each year. Creating a sales process is simply a matter of developing a game plan for the team, enforcing the process and then measuring the results. For most business owners that means letting go of the reigns and teaching the team how to sell, one of the only ways to ensure that the company continues to be profitable.

It’s true that the much needed growth of America’s economy depends heavily on the success of job creation throughout the United States. Still, America’s future doesn’t have to be one full of doom. We believe that every business has the potential to succeed, especially if entrepreneurs place an emphasis on purpose, culture and process. Our goal is to make sure that every business owner has access to the same information we do. Learn more about Carver Peterson and what we can do for your business at www.CarverPeterson.com.

By | 2017-06-26T20:34:29+00:00 April 27th, 2016|Blog|0 Comments

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