More than half of the country’s 2.2 million startups fail to break into the US market, a new report from FourFourtwo shows.
In fact, just 16 percent of the firms in the country are considered ‘unicorns’, which are companies valued at more than $100 billion.
Read moreWhat makes the US so hard to start up?
The study says entrepreneurs are a mixed bag of diverse backgrounds, ages, genders, nationalities and educational backgrounds.
“This isn’t surprising given the unique set of opportunities in this country that are often missing in the rest of the world,” says Aaron Gagnon, CEO of FourFourOne, a technology company that tracks startup companies.
“The best-case scenario for an entrepreneur is that they have an innate entrepreneurial spirit and an ability to innovate on their own,” he says.
But he cautions against the notion that America’s founders are just “sugar daddies”.
“It’s the lack of opportunity in America, the lack and lack of a lot of diversity, which is also the lack in a lot to start companies,” Gagnons says.
“So if you’re an entrepreneur who’s got some innate entrepreneurial passion, that’s something you’ll be able to develop.”
In terms of education, US graduates are more likely to be white, to have a bachelor’s degree and to have an annual household income of $60,000 or less.
They are also less likely to hold a bachelor of science or a higher degree than their peers in Europe and Japan, which are generally more expensive places to study.
The researchers looked at the top 5 percent of founders who had $100m in venture capital funding and the top 10 percent of total venture capitalists in the US between 2008 and 2013.
The study also looked at how companies performed financially and the companies’ profitability.
There was a wide range of outcomes for these companies.
For instance, there were large variations across the US on how successful they were.
For instance, in the bottom half of companies, just 5 percent were in the top 1 percent of venture capitalists and 3 percent were on the top 25 percent.
However, there was a significant difference between the bottom and top 20 percent of all the companies in the study.
In the bottom 20 percent, just 6 percent were profitable.
The top 20, meanwhile, had a turnover of $17 billion, which was higher than the $6.3 billion of the bottom 90 percent.
The report said that for all of the top venture capitalists, there is a high turnover rate among the top entrepreneurs.
For example, the top 40 companies had turnover of nearly $50 billion, and just two were in that group.
For entrepreneurs in the UK, there are a number of factors that could influence success: a high concentration of female founders, a low cost of living and the quality of education available.
However the report said the UK is not the most entrepreneurial country, and that there are “several other factors that contribute to the high turnover in UK startup companies”.
“There’s a strong emphasis on quality education, particularly at a high-quality level,” Gignon says.
There are also a lot more women founders in the United States than there are in Britain.
Gagnon says the lack to start in America has been an issue for decades.
“We’re a country that doesn’t have a lot that we do to attract and keep talent,” he said.
“I think the idea of being the underdog, that idea has been around for a long time.
So when there’s a lack of opportunities, people are going to look for something else.”
He also points to a number other factors, including the cost of housing in the state of Florida and the fact that the UK has been hit hard by the financial crisis.
“It was really a crisis that was very difficult for people to cope with,” he explains.
“And I think a lot people feel that this recession has really hit them, and there’s not a lot left to do, which I think is really important.”
Read moreA key reason for the lack is that many of the founders who have already been in the industry for a while, have a lower salary.
The report also pointed out that the US government does not have an effective financial aid program for young entrepreneurs.
This is not surprising to the research, Gagnones says, because “there are no financial aid programs for people under 30, who are typically the most creative and innovative people in the business”.
“And when you look at the young entrepreneur, who often has an innate curiosity about entrepreneurship, there’s an opportunity to be able help those young entrepreneurs in a way that they wouldn’t be able,” he adds.
The authors say that in the short term, US businesses are struggling to find qualified workers.
“There is a lack and a lot there is of talent,” Gaffney says.
“But what I think we’ve done is to