EMBA 530 Innovation and Entrepreneurship Discussion initial post Essay - 1

EMBA 530 Innovation and Entrepreneurship Discussion initial post - Essay Example On the other hand, many new ventures provide generic services such as restaurants, barber shops or beauty salons, car repair shops, and similar common (versus radical) products. The fact that ventures tend to fail more than succeed is evident in the tendency of venture capitalists to be more confident in predicting the failure rather than success of proposed ventures (Landstrom, 2007). This myth states that most successful enterprises are serendipitously born from some revelation of a revolutionary new product or technology. Far from the truth, because all enterprises set out with much risk and doubt, and the business owners would have endured several setbacks and would have changed their plans multiple instances before they would have achieved success in their business. In fact, corporate ventures (set up by large incumbent firms) are more successful at pursuing radical innovations than are small entrepreneurial ventures, because of the more advanced technical support and steadier financial assurance from the large corporation (Czarnitzki, Dick & Hussinger, 2010). It is necessary to keep tax rates low so entrepreneurs could reap rewards that would keep them motivated in their enterprises. Actually, this is true to some extent because entrepreneurial profits are lower in states with higher marginal tax rates (Ortmans, 2011). What is not true, however, is that high tax rates are the only disincentives to entrepreneurs. There are many other factors that tend to discourage entrepreneurs or cause enterprises to fail. One of these is complex accounting methods and reporting requirement. Another is the bureaucratic bias against enterprises that compel the firm to hire specialists and professionals to duly advise them. But probably the most important disincentive is the thousands of regulations, such as employment and health-care regulations by federal and state agencies, which erode the scarce capital and investment resources of the small business. These and a