Law & Entrepreneurship News

Archives: Comparative Entrepreneurship

Security Responsibilities for Foreign Investors Imposed on Pakistani Entrepreneurs

In a recent article, the Pakistani national government, in conjunction with regional entities, has raised the interesting suggestion that those Pakistani entrepreneurs who pursue foreign investment be responsible in large part for the security of any visiting investors. By developing new security standards, including the certification of hosting entrepreneurs, it is hoped that recent "unpleasant incidents" may be avoided, thus encouraging those foreign investors who may have shunned Pakistan due to security concerns.

Euro-Funding Forum

The 4^th European Forum for Innovative Enterprises is to be held this December. The Forum is presented in large part by The Pilot Action on Innovative Start-Ups (PAXIS), an organization dedicated to the advancement and sharing of innovative ideas within the European Community. Further news regarding the funding of European start-ups can be found at http://www.welcomeurope.com/eurofunding_zine.asp?genre=18.

StartUp Jerusalem Aims to Improve Economic Conditions

StartUp Jerusalem is an initiative begun by Nir Barkat, a local politician and businessman. The eventual goal is to create a prosperous and sustainable economic base in that city, which is currently one of the poorest in Israel. Using the “clusters” theory forwarded by renowned economist Michael Porter, StartUp Jerusalem hopes to develop and sustain an international company around which other related businesses may congregate.

Old Festering Wounds Hamper Entrepreneurial Development in Vietnam

Although the Vietnam War ended more than 30 years ago, the bad memories have not faded. One of the contemporary battles that is being fought is between those Vietnamese who immigrated to the United States after the war and those who stayed behind out of ideology or hope. Many Vietnamese immigrants settled in California where they, along with other Asian and Indian immigrants, cut their teeth during the great Silicon Valley tech boom. With this knowledge and skill, many of those entrepreneurs have returned to the countries of their or their parents birth.

The influx of intellectual capital has proven to be a boon for India and China, helping to establish their tech sectors as one of the key building blocks in the future economies of those countries and the world. However, Vietnamese-Americans have not been welcomed back with open arms and wallets. Instead, they have encountered a great amount of hostility from the Vietnamese who experienced the war, many of which are now older and hold influential positions within the government.

UAE Aims to Encourage Young Entrepreneurs

Entrepreneur Magazine has been released in the United Arab Emirates in the hopes of encouraging young people to become involved in the economic development of that country. Of particular interest is the relatively high numbers of female entrepreneurs currently working in the UAE, still an unusual occurrence in the Arab world.

Funding for South African ICT Start-Ups

The Digital Divide is often cited as a major factor in the lagging economic growth that many third-world countries experience. The lack of access to dependable communications technology can severely hamper the development of entrepreneurial opportunities as well isolating the existent economy.

However, an non-profit organization called Enablis has announced the availability of early-stage funding, technical guidance, and business coaching for South African ICT entrepreneurs. By aiding in the development of a quality domestic ICT structure, the Digital Divide may shrink and allow South African businesses to increase their broader market participation.

Entrepreneurial Funding in London

It was recently announced that minority and other disadvantaged groups in the London area may apply for funding and training assistance for establishing new start-up businesses. The program is organized and funded by the Mayor’s London Development Agency (LDA) in conjunction with the European Social Fund (ESF).

The LDA is an organization that centralizes business assistance programs, focusing in large part on providing financial and technical resources to traditionally disadvantaged groups. The LDA invests approximately ฃ300 million per year ($538 million) in an effort to create new businesses and to sustain and grow existing ones.

Jordanian Incubator Announced

Fastlink, the Jordanian telecom provider has announced the launch of an incubator program to encourage the development of new technology. The venture is dubbed “Brainbox” and hopes to provide both technical and financial assistance to Jordanian and other Arab entrepreneurs developing ideas in the wireless and IT sectors.

Going Dutch

Dutch entrepreneurship has historically been very international in it's focus. The geographical size of the Netherlands necessitated the effective expansion into foreign markets, bringing Dutch domestic companies to the world while also establishing ventures abroad.

In recent times, the focus remains on internationals, but has expanded to those living within the country. In particular there is an increased effort to involve more international women in beginning companies and putting their ideas to work.

Furthermore, the idea also includes women, of all races, who have been long-term unemployed.

Venture Capital in China

For many investors, venture capital in China remains something to be considered carefully. Nonetheless, the number of Chinese VC funds has been increasing significantly over the last five years.

A brief look at the history of the VC opportunities available to Chinese entrepreneurs reveals a government, which, although recognizing the large amount of innovative ideas and industries available domestically, lacked the experience to effectively manage private equity funds.

Fortunately for Chinese entrepreneurs, the availability and management of capital has improved as organizations that promote funding and entrepreneurship are working to match investors with innovators. The recent global economic downturn has slowed the influx of foreign capital to some degree, but even that seems to subsiding and recent VC forecasts have been positive.

Entrepreneurship in Developing Countries

Regular readers of Law & Entrepreneurship News, this section in particular, will probably notice that the topics involving international entrepreneurship tend to focus on European and Asian markets. The primary reason for the noticeable dearth of stories on African and Latin American programs and opportunities is in large part due to the relative lack of readily available information thereon.

Social and economic instabilities play a large and unfortunate part in handicapping the domestic development of effective capital and information distribution systems, as well as causing foreign investment sources to proceed with great hesitancy.

Fortunately, efforts are being made to encourage and guide interested companies and individuals in Africa and Latin America. I hope that my colleagues and I will be able to bring them to the reader's attention.

EU Entrepreneurial Network and Resources

The European Union has put in place an interesting system to promote the entrepreneurial spirit by assisting individuals and businesses.

Part information clearinghouse, part networking hub, the EU has established an interconnected network of Euro Info Centers (揈ICs?) that serve small and medium-sized businesses.

Furthermore, Innovation Relay Centers are similar to the EICs, but focus solely on innovative new technologies, including those in the Biological Sciences, Energy, and IT.

Increased French Venture Funding

The French government has succeeded in pressuring domestic insurers to invest more in venture capital projects in that country.

It is hoped that the change will encourage French pension funds to allocate a larger percentage of their funds to private equity investments. The news was greeted with enthusiasm by a leading French entrepreneurship and innovation group, which had been calling for an increase in funding and expanded entrepreneurial cooperation within the EU as a whole.

India's Domestic Capital

There is certainly nothing new about the influx of foreign capital into India. Many corporations have found the supply of highly-skilled labor and lower operating costs to be enticing, despite concerns by some (especially this fall) regarding the outsourcing of what they consider "American" jobs.

However, the Bangalore Boom has not initially proven to be a great destination for India's domestic venture capital. A large reason for the relative dearth of Indian VCs may the licensing and regulatory climate.

As changes occur in that structure, there are indicators that suggest that the Indian venture mood may be looking up as well. Recent news that the Small Industries Development Bank of India (SIDBI) has tied in with seven of India's public sector banks demonstrates that slow domestic funding may soon be a thing of the past as Indian VCs enter the market spaces that exist between the numerous international groups.

European Entrepreneurship

The recently released Entrepreneurship Action Plan will provide long-term guidance for the development of capital funding programs and for fostering the entrepreneurial spirit in the European Community.

The focus appears to be on the younger generation of Europeans, with specific attention granted towards the creation of opportunities for women and ethnic minorities. The Plan is a result of a long drafting process, subject to open public consultation, with the final goal being the creation of the world's most competitive economy by the year 2010.

The Plan is to be implemented in step with the Charter for Small Enterprises, existent since the year 2000, the combined effort driving in pursuit of the Community's lofty goal.