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Third World crushes its entrepreneurs

with 2 comments

I came across this very interesting article by Carlos Montaner on Google today and thought I would share this with you. He asks the question “…why is it that creative people don’t emerge in the Third World, capable of developing innovative products and building companies that market those products, create jobs, generate large profits and influence decisively the fate of this planet?”

He comes to a very interesting conclusion that the State in Third World countries stifles entrepreneurship and “… offers only hindrances, corruption, parasitic bureaucrats who demand bribes to not paralyze people’s projects; it is manned by individuals well connected with the political power, who protect their businesses from free competition, thus harming the consumers.”

It would be interesting to get your feedback on the article and also to hear your opinion on the state of entrepreneurship and entrepreneurial support in South Africa.

Read the full article at:

Source: ©2008 Firmas Press



Written by bandwidthbarn

September 2, 2008 at 6:36 pm

Posted in Entrepreneurship

Tagged with ,

2 Responses

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  1. I’m not sure that this situation is more prevalent in the 3rd world, but, in combination with a schooling system that doesn’t value creativity and original thinking, funding that favours large loans against small loans of a couple of thousand, inadequate business networks and a BEE approach that focuses on big deals at Boardroom level rather than on Enterprise Development support for all start-ups – Entrepreneurship ain’t really encouraged.

    Alan Maguire

    September 3, 2008 at 7:55 am

  2. In South Africa, particularly in the ICT industry where there is an acute shortage of skilled labour, we have an additional double edged sword when it comes to BEE.

    Any employer should have a BEE strategy in place, it is the law and yes it is good for the country, however it also has drawbacks if you happen to be a white entrepreneur in the ICT industry. To give an example, it is clear that first class black graduates from universities would be snapped up by big corporates first, there is no way a start up can compete with salaries offered by corporates. Now as a startup, what can one do? Its hard enough to start and run a successful business, the government created the law and so they should also create solutions to the very problems that I have mentioned.

    Perhaps the solutions are out there and I just don’t know it – hopefully endless amount of red tape is not involved.

    Nico de Wet

    September 9, 2008 at 8:31 pm

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