Week 2 Reading Reflection

Entrepreneurship: Evolutionary Development - Revolutionary Impact

1) The biggest surprise when reading this chapter was that approximately 600,000 to 800,000 establishments are created each year.

2) One part of the reading that was confusing was within the surprising part. If 600,000 to 800,000 of the 6 million establishments are new that year, will there be almost 6.01 billion the next year. I understand that businesses close, but do enough of them close to balance out the 6 billion year after year?

3) There are two questions I would like to ask the author. The first is similar to the situation above: Do enough businesses close each year that the 600,000 to 800,000 new establishments do not take up too much space? I ask this because I want to know if it mimics the humans, as we have too many and are using up our resources too quickly. If there are too many establishments, our earth will be at a greater risk. The second question I have is: When referring to the myth that 85% of all firms fail in the first year, you say the origins were traced to David Birch; do you believe the accurate statement would refer to the 85% as the percent of businesses that do not last more than say, 50 years?

4) In this specific chapter, I slightly disagree with the luck being a myth. I do not believe in luck, but I do believe in good timing. If the cards are lined up in your favor, you benefit. Other than good timing, a person should be well-prepared for an opportunity.