Want to and American\'s most successful entrepreneurs? Skip Silicon Valley and M
ID: 1200417 • Letter: W
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Want to and American's most successful entrepreneurs? Skip Silicon Valley and Manhattan; head to the rural Amish enclaves. Amish businesses have an eye-popping 95% success rate at staying open at least five years, according to auther Erik Wesner's new book, Success Made Simple An Inside Look at Why Amish Businesses Thrive. It's a stastic drawn in part from survey data from a 2009 report by sociology professor Donald Kray-bill. Studying several Amish settlements Kraybill found failure rates ranging from 2.6% and 4.2%. Compare that to the average five-years survival rate for new businesses across the United States, which hovers just under 50%. So what's the secret? Wesner, who worked in business management and sales before immersing himself in all things Amish, which emphasizes "qualities like hard work and coperation." Networking through Facebook doetn't exactly have the same community-building pull as teaming up with neighbours to build a barn, and few Americans these days can point to a childhood where they awoke regularly at dawn to milk the cows. Another key advantage is that Amish business owners tend to stick with what they know. "Everything about the Amish says things like 'rustic,' 'traditional,' 'handmade,' so they tend to play to these strengths," Wesner's says, "Would consumers trust an Amish cell-phone dealer or an Amish computer repair guy to know what he's doing? It'd be a pretty big mental and marketing hurdle to get over." Kraybill estimates that there are at least 9,000 Amish business ownen across the U.S, which he divides into two groups: "caretakers" and "entrepreneurs" "Caretaken generally have smaller, at-home or near home businesses with five or fewer employees and they don't want to grow but simply sustain income for themselves and a small number of emptoyees." Kraytbill says; "The entrepreneurs are a different breed. They have larger businesses and somewhat want to grow, and they are more aggressive in marketing, trying new ideas and are willing to take risks." Risks like buying a failing business and trying to turn it around. Two years ago, in Glen Rock, Penn.. Ben Riehl purchased a flagging food stand at Markets at Shrewsbury, a gathering spot for Amish vendors. He turned to entrepreneurship as a way out of what he calls "somewhat of a deadend job," working in the metalworking and machine shop at a plastics company. Riehl renamed the shop the Country Style Dell and enlisted his wife. Mary and their two sons to help him work the stand, which sells local and imported cheeses, homemade breads, and subs and sandwiches. They also employ four other people part time. Clinging to values While Amish business owners face more restrictions than your typical entrepreneur, modern touches are creeping into the bussiness scene. Some Amish retailers use electricity in their shops, more as a nod to customers who expect air-conditioning and credit-card machines. They're often fueled with alternative energy sources, like solar and wind power. In his field research, Wesner found some Amish entrepreneurs conducting business using cell phones, fax machines and even e-mail. It's still a sensitive topic-not because the Amish believe it's unethical to use these devices, but because they can have a subtle, adverse impact on the entrepreneur. "The smarter you get, and the more technology you use for your business, the more impact it has on families," he says "For Instance, there was a time the farmer would be in the parlor milking cows, and everyone was there, singing songs, and it was work, but It was also family time. Now an Amish farmer is likely to be milking forty cows, and the children are at school. That's practical living, and you've got to keep up. But at the same time, It takes away from that balance, and you have to ask yourself, "How far do you let technology affect your bussiness. Are there elements of all types systems - traditional, command and market - in the U.S economy? Think of some examples to support your argument. What are some of the problems that the traditional system faces in today's electronic, technically advanced system?Explanation / Answer
The United States can be thought of a country that is classified as a mixed economy. The optimal mix between the public and private sectors of the economy is the one that is yet to be achievable.
A mixed economic system is composed of all the major elements of the market economy as wells as the command economy. Majority of individuals economic decisions are made and enacted upon in the market by individuals themselves. But the government plays a critical role in the allocation and distribution of resources.
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