Entrepreneurs play a vital role in any country’s
economy. In general, European countries do not
have as much entrepreneurial activity as the
United States or developing countries in Latin
America and Asia. The reasons include high taxes
and lots of regulations in Europe, which lower
overall business freedom. However, many
European countries are now trying to encourage
entrepreneurship by reducing taxes, cutting
regulations, and reducing the time it takes to start
a new business.
VOCABULARY
Entrepreneurship: someone who has an idea for a
good or service and takes risks to produce in
Data Analysis
Use the data in the table to answer the questions.
Country United Kingdom Germany Russia World Average
Starting a
new
business
takes…
5 days 11 days 10 days 21 days
Overall
Business
Freedom
90% 86% 74% 65%
- The United Kingdom has a higher level of entrepreneurship than Germany and Russia.
Use data from the table to explain why.
Apply What You Learned
Imagine the president of Russia is giving a speech on television. He is explaining
a plan to improve the Russian economy. Read the excerpt and answer the
questions.
- Read the first bold statement. The president’s
plan is based on the conclusion that:
a) exporting natural resources is an excellent
source of income for Russia
b) an investment in human capital will increase
the country’s overall GDP
c) entrepreneurs bring innovation to the
marketplace and spark economic growth
“Our workers must be prepared for a wide variety of
jobs in the global economy. (1) My plan is to
provide additional funding for students seeking
higher education and training in medicine, law,
engineering, and the sciences. But the task of
moving forward cannot fall on the shoulders of
workers alone. (2) Therefore, we will give
incentives to companies that invest in new
computers, wireless technology, and efficient
factories.”
- Read the second bold statement. The president’s plan is based on the conclusion that:
a) an investment in capital goods will increase the country’s overall GDP
b) exporting natural resources is an excellent source of income for Russia
c) entrepreneurs bring innovation to the marketplace and spark economic growth