Internal Memorandum Article Example | Topics and Well Written Essays - 250 words

Internal Memorandum - Article Example Summary and response: Frymovich starts by discussing the current problems faced by the young entrepreneurs and small businesses in Europe, highlights the business environment by submitting facts and figures, and then explores the reasons behind those problems (Frymovich). According to the article, it is very difficult for small firms to get credit or financing for their operations (Frymovich), and to get an open market in the EU, therefore, the majority of the small firms head towards the U.S. where the laws and policies are more favorable and the market more accepting (Frymovich). It is interesting to note that Europe has almost doubled the number of self employed workers (Frymovich), and if each of those self employed business people were to hire just one more worker, a magnitude of new jobs would be created (Frymovich). However, most of those businesses hesitate to operate in Europe, due to the dearth of venture capital and angel investment, complex government policies and prolong ed time periods for government funding (Frymovich), and the lack of acceptance of high risk in the market (Frymovich). The banks in Europe are still recovering from economic recess (Frymovich), and the firms are protected by the government (Frymovich). This means that downsizing and starting over are more difficult in the EU than it is in the U.S. (Frymovich). Whereas this protection can be viewed as a safety factor for the employees in that they cannot just be fired at whim, and so their economic stability is guaranteed, this safety factor serves as a hurdle for companies which have failed in their venture and want to start anew in some other field of business (Frymovich). For example, by cutting the credit rating of a failed operation, Germany makes it harder for the business to venture into the market again (Frymovich). Although there are some agencies working for the benefit of the small operations, they