Entrepreneur Perspective: Measure the Causes of Living
While constructing new ventures based on "acceptable loss" is important, entrepreneurs tend to measure causes of living rather than costs of living.
Bradley Canham, Ed.D.
1 min read
Entrepreneur Perspective: Measure the Costs Cause of Living
Entrepreneurs often find that focusing solely on the cost of living provides an incomplete picture of economic health. While the cost of living measures expenses such as housing, food, and healthcare, it does not account for the underlying factors that drive economic vitality.
By examining the causes of living—elements that contribute to economic well-being—entrepreneurs can identify opportunities for growth and innovation. Metrics such as the density of new and young firms, the share of employment in these firms, and sector-specific startup density offer insights into the vibrancy of an entrepreneurial ecosystem. For instance, the Kauffman Index of Entrepreneurship provides data on startup activity, new business density, and growth rates, which are crucial for understanding economic dynamism.
Focusing on these causes allows for a more proactive approach, enabling entrepreneurs to leverage favorable conditions and address challenges before they escalate. This perspective shifts the narrative from merely coping with economic conditions to actively shaping them, fostering a culture of opportunity rather than one of constraint.
In essence, while the cost of living reflects current economic conditions, understanding the causes of living empowers entrepreneurs to drive economic development and enhance living standards. (Stangler & Bell-Masterson, 2015)