Government Entrepreneurship

Ateneo Professor on Entrepreneurship

August 29, 2013

I made a new research;  this time on government entrepreneurship. This article has been inspired by my reading on Larry Farrell. He is the expert on international entrepreneurship.  He advises countries on promoting entrepreneurship as tool for economic development.  He came over to the PHL for a lecture on Corporate Entrepreneurship at UAP and said I was his friend. (His wife isnt!) He gave me a authographed book - The New Entrepreneurial Age, which egged me to write do this research.

  While some govt could be very friendly towards entrepreneurs, some are outrightly hostile and anti business.   Europe has been pro labor and look at its economy now.  But Taiwan under Li, the Minister of Economics said that government must honor entrepreneurs.  That is also an extreme.  That is why Taipei averaged 9% growth for the last 60 years and 5th largest reserves in the world.

Elsewhere in the world, even in the PHL, entrepreneurs are harassed by regulators.  There is no need to give money or support to entrepreneurs;  just leave them alone

Even in US businessman are wary of IRS, Obamacare and the precarious govt finance situation.  In California, many readers are wary that the Hyperloop concept will not take off in California.  California has been rated by The Executive Magazine as one of the worst place to do business in.

Here is the slideshare presentation

Government Entrepreneurship from Jorge Saguinsin

New research on government entrepreneurship and capitalist entrepreneurship

Ateneo Professor on Entrepreneurship |  August 20, 2013

As it was raining so hard yesterday and not much office work to do, I decided to gather my thoughts on these two topics:    capitalist entrepreneurship (inspired by Dick Smick in his book, The World is Curved) and government entrepreneurship the ideas of which came from Larry Farrell. The seminal idea came from the post on ecosystem for the business to thrive.  Some governments and states are involved in investment in new ventures.  Some/a few have been successful

Most of the articles are merely on separate topics:   entrepreneurship, capitalist, or government but not on the above mentioned specific topics

For government entrepreneurship, Malaysia, Singapore, Taiwan and China are countries to benchmark.  The famous personalities are K. T. Li of Taiwan,  Koh Bon Hwee of Singapore, and Mustapa Mohamed of Malaysia, and Charles Millard of New York City

Presidents Reagan (with his controversial Reaganomics) and Clinton have been famous for bringing US to long periods of growth and prosperity (but they say that the tax cuts under these two presidents blew up the debt and deficit spending by the govt and hence this Obama situation)  And you have Jack Kemp

The contents are done but I would like a nice template for them to be more attractive and presentable.  I hope many would be interested in these topics.

These are new.

Entrepreneurship grows well in a favorable ecosystem - with a little bit of....

Ateneo Professor on Entrepreneurship

Angono, Rizal PHL    |  August 15, 2013

Lecture on entrepreneurship for local businessman and officials

Tomorrow, I will be lecturing some local businessman and public officials on entrepreneurship.  On Monday, I will be receiving an award on entrepreneurship.   This is a good sign because the public sector supports entrepreneurship.  It is the kind of environment that entrepreneurship needs in order to survive.  Entrep needs a thrives on a favorable ecosystem.

State of entrepreneurship in USA

Last night, I was watching Fox News and many US businessmen are wary according to a survey of the following:  

    l.  Overregulation;

    2.  The rising cost of health care (due to Obama care)

    3.  The IRS

    4.  The growing US debt and fiscal deficit.

Are these conducive to entrepreneurship and job generation?   No wonder, the unofficial unemployment rate at US is at l4% (it is 26% in Greece and Spain)

What entrepreneurship needs according to Larry Farrell:

    l.  A little bit of education -  Short courses, not MBA works well for start ups and entrepreneur wannabees.  The only thing that we need to develop entrepreneurs is to teach wannabees how to create and produce products and services that the world needs.

     The model for this little bit of education is the Junior Achievement.  In the Phil, it is the Go Negosyo Caravan. and some elective subjects at MBA.  In my experience, the Jaycees did much to develop that little bit of entrepreneurship in me.

   2.  A little bit of money -  It does not take that much money to launch a start up.  That is why many governments have wealth funds to launch start ups as in Dhubai, Estonia and even in NY. These are the stats showing how much it cost to support:

     A year in prison  -   $45,000   (Pl, 800,000)

     A year in Harvard -  35,000    (Pl,400,000)

    A year on welfare  -  25,000    (l,000,000)

    Start up cost           -  14,000   (   560,000)

    Entrepreneurship requires the least cost.  

   In NY there was this New York City Discovery Fund with initial $10,000,000 funded by the Economic Development Council chaired by Charles Milllard..  Charles Millard proposed for the NY City then headed by Guiglani is "first do no harm" (same as Hippocrates Oath?)

    Each of the companies that I founded required only P312,500 as paid in capital which is 25% of P1, 250,000 of subscribed capital.  And yet we continue going by way to socialist route to support the poor.  Money goes down the drain.

   3.  A little bit of culture -  The government must be friendly to entrepreneurs.  But I have noted on one hand the govt says it promotes entrepreneurship;  that is the benign side.  On the other hand, the other hand, the ugly side of the govt:  the zealous technocrats of the revenue (customs and BIR), the police, the market administrators, pounce and mulct the poor entrepreneurs.

    Just a little sympathy is needed.  There are many citizens who want to be self supporting and revenue generating, independent citizens. 

   According to Koh Boon Hwee, Chairman of Singapore Telecom (part owner of Globe Telecom) and who led the successful Singapore ventures:   Singapore Development Bank, Singapore Airlines, it was government entrepreneurship that propelled Singapore to its progress.  It has maintained a friendly atmosphere  for entrepreneurs

    These countries according to the survey of Kaufman Foundation are entrepreneur friendly:

          Countries and their start up rates:

         USA        8.4  <in view of the Fox news survey, this must be changing now.>
         Canada    6.8
         Germany 4.1
         Italy         3.4
        UK            3.3
        France       l.8
        Japan         l.6

The stats on Japan jive well with the observation that bank and govt structure in that country are so against lending and supporting entrepreneurs.   

Earlier, PHL was ranked by Global Entrepreneur Monitor (GEM) (I met the Managing Director in a conference in Korea) as No. 2 worldwide in entrepreneurial activity.

Some activities of the government really piss off new wannabees.  The BOC and Philpost rascals effectively killed on line businesses in the PHL.  So is attempting to regulate the internet or ownership limitations, change in taxations.

So govts must carefully study how to maintain the delicate ecosystem if it wants to be up in the economic activity or for it to recover.

What counts in corporation search for innovation?

Ateneo Professor on Entrepreneurship

I watched at CNN last night interviews with CEO on innovation and reliving the entrepreneurial spirit.  I thought it was about resources or talent/

But they do not count much anymore

It is about high speed of innovation - namely the ability to get concept into products/services quickly and at the least cost.  Inertia in the organization, the slow action kills innovation and make the company less competitive.  That is why the one man entrep venture, those who are quick and unbound by rules flourish.

Larry Farrel was right on the dollar on this:  high speed iis the key to entrepreneurship and innovation

What is your take

A Little Bit of Money

Our generation needs an ENTREPRENEURIAL REVOLUTION.

Much has been said that lack of money is the impediment for many start ups.  Well to a large extent, that is true.  But the real capital is not the not the financial capital.  Capital after all comes from the word capito meaning the head.  The head is the real capital.  Intellectual capital that is.

Quoting from the book of Larry Farrell, The New Entrepreneurial Age, the following is the comparative study of start-ups vs other social costs:

       . start up cost         - $l4,000.00
         year on welfare    -25,000.00
         year in Harvard    -35,000.00
         year in prison       -45,000.00

It is twice as expensive to fund unemployment (a defensive move) than it is to support entrepreneurship or even more if the fund is lent to be paid back.  On this basis, the Obama job bill costing $450 billion, which is mostly welfare bill, does not look very sound.  

How about prosecuting and jailing crooks as a policy?

Historically, it does not cost much to fund winning business venture.  A real estate venture we had started with Pl5,000.00;  most of our big companies started with P312,500.00 paid up capital (Pl.25m subscribed capital stock and P5m authorized capital stock)

Splash started with Pl2,000.00, l/2 of the cash wedding gift received by Dr. Hortaleza and wife; Growers peanut started with P3,000.00 capital (as told by the entrepreneurs themselves in their entrep talk we had in class, similar to the November 8 event.)

In  the US, the following are examples of the start up costs/capital of the ff: businesses:


         Dell Computers    - $1,000.00
         Twitter                  -      0
         Facebook              -      0
         You Tube              -      0
          Google                 -      0
          E bay                    -      0
          DHL                     -      0
          Sony 1945            -     l00.00
          Matshusita l918    -      50.00
          Nike 1964             -  l,000.00
          Apple Computer   -  1,350.00

So you do not need millions to earn thousands;  a little bit of money, plenty of hard work, imagination and heart on fire.

        

          
      

Larry Farrell Business Plan Writing Competition

I just gathered the business plan submitted by both the MBA standard and Middle Manager program.  They were done within one month after the end of the regular trimester.  As I announced earlier, they are qualified to join the Larry Farrell business plan writing competition.  Larry Farrell, who is an international expert on entrepreneurship is a friend of AGSB (he visited AGSB twice and delivered lectures).

I hope that the business plan submitted are of high quality and reflect the learning from the cases and lectures in the class room.

Profjorgeentrep with Mr. Larry Farrell, International Expert on Entrepreneurship

Mr Larry Farrel visited the Phiiliipines thrice:   the first was in 2009 when he had a lecture on corporate entreprenuership  at UAP.  Then he visited Ateneo twice:  in January 20l0, and lately in 20ll.  Mr Farrell has trained over 5million people on entrepreneurship.  His specialty is advising big companies and countries on how to be entrepreneurial.  In the recent meeting with Dean of Ateneo Graduate School of Business, Alberto Buenviaje, Mr Farrelll signified to do work together with Ateneo especially in making Ateneo as Center of Entrepreneurship in Asia, as several colleges and universities are in the US.

                                   Prof Jorge moderating Q and A for Mr. Larry Farrell at AGSB
                                                               Ampitheater