Nice one Gordon

Posted by Peter Cunningham on April 20, 2009 under Miscellaneous | Be the First to Comment

Personally I think the government is the worst allocator of resources. Decisions will be afflicted by politics (MPs defending marginal seats will want pork for their constituency), bureaucracy, political correctness and regional policy – never a recipe for optimal allocation of resources. And there will be pressure to keep funding ‘lame ducks’ that private investors would just leave to die.

 

A radio 4 interview I heard asked how the US was able to find so many projects so quickly for ‘public funding’ as part of Obama’s economic stimulus – the answer was easy these were all the projects that had already been rejected as hairbrained or non-viable that were just being re-presented!

 

The only way it would work would be as a blind investor letting a VC or business angel association take the lead, evaluate the business case and value the opportunity. But would that not just crowd out funds that would have invested anyway.

 

Maybe tax breaks for investment or reviving the small business loan schemes would work – or how about creating a fund that would allow entrepreneurs to claim a minimum and decent revenue when they work on first few months of a start up (having worked and lived in France for several years, many of the entreprenuers I met ‘arranged’ to be made redundant to be able claim two years salary from the ASSEDIC – 60% of the old salary paid by the government – while they worked on a start up. It was possible as long as you only took dividends and no salary! Makes you wonder why there are not more French entreprenuers? That is because they try and kill entrepreneurs with taxes and redtape as soon as they are successful, but thats another story). I always wondered why we spend so much money for the unemployed to sit on their backsides but never help those that try to help themselves.

 

Thats my rant over!

— On Mon, 20/4/09, Antony Penn <[address removed]> wrote:

From: Antony Penn <[address removed]>
Subject: Re: [entrepreneur-1056] Nice one Gordon
To: [address removed]
Date: Monday, 20 April, 2009, 2:00 PM


Given that:
1) banks are risk-averse
2) the banking ecenomy is shot; and
3) the UK government have a poor record of encouraging small businesses

You can guarantee that:
a) it will be many many years, if ever; and
b) you will find it near impossible to qualify



On 20/04/2009, Hamlesh Motah <[address removed]> wrote:
I’d be very surprised if the “Sheriff of Nottingham” manages to make this happen!


On 20/4/09 12:29, Jon Vollemaere wrote:

How long do you think it will take to go live ?

http://news.bbc.co.uk/2/hi/business/8007467.stm



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