Posts tagged with: venture capital

Blog author: jcouretas
posted by on Friday, March 22, 2013

logo1b.aiThe Hitachi Foundation is accepting applications for its 2013 Yoshiyama Young Entrepreneur Award, which identifies up to five young people striving to build “sustainable businesses” in the United States. Each awardee will receive $40,000 over two years, along with the tools and training designed to put a startup on the path to success. Deadline is March 28.

The Hitachi Foundation says its Yoshiyama Young Entrepreneur Program “identifies and highlights leaders who are using the power of business to fight poverty in the United States.” Those whose entrepreneurial efforts are animated by faith principles are encouraged to apply. Eligible entrepreneurs are those “intending to lift low-wealth people out of poverty in the context of their business.” These, the foundation explained, “could range from creating quality jobs, producing new products and services or devising management strategies that propel the business and low-income people forward.”

Hitachi Foundation will also host up to ten finalists in Washington for a “two-day networking event with peers and field leaders.”

Applicants must have started a business that is now between one and five years old and the entrepreneur must have launched the business before reaching age 30. In addition, the business must be generating revenue for at least the last 12 months. The business can be legally structured as a for-profit or nonprofit enterprise, but must be a revenue-generating model and not rely primarily on grants or donations.

Investors Circle, an early-stage network of “angels, venture capitalists, foundations and family offices” that has invested in 269 enterprises, is collaborating with Hitachi Foundation on the award program.

Blog author: jcouretas
posted by on Monday, November 12, 2012

Writing on The Corner over at National Review Online, Acton Research Director Samuel Gregg points to the election and, refreshingly, tells us that, “I’m not one of those who, in recent days, have seemed inclined to indulge their inner curmudgeon, apparently convinced that it’s more or less game-over for America and we’re doomed to Euro-serfdom.”

Gregg, author of the soon-to-be-released and available for pre-order Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future (Encounter Books, January 2013), explains why there are, still, important differences between Eurotopia and the United States. For one thing:

… the strength and persistence of private entrepreneurship continues to substantially differentiate America’s economic culture from that of Europe. America remains ahead — and, in some areas, continues to pull ahead — of most of Europe when it comes to private innovation. As noted in a World Bank report earlier this year, the elements that fuel innovation, such as ease in obtaining patents and availability of venture capital, continue (at least for now) to be far stronger in America than in most of Europe.

The same report specified that it is young firms driving innovative growth in America. Among America’s leading innovators in the Industrial R&D Investment Scoreboard, more than half were created after 1975. They include firms such as eBay, Microsoft, Cisco, Amgen, Oracle, Google, and of course Apple. By contrast, only one in five leading innovators in Europe is young. In America, young firms make up an incredible 35 percent of total research and development done by leading innovators. Their European counterparts account for a mere 7 percent in the old continent. That’s great news for America and a major headache for Europe over the long term.

Read “Are We all Europeans Now?” by Samuel Gregg on NRO.

Blog author: jcouretas
posted by on Wednesday, January 26, 2011

When we think of rule of law failure, countries like Zimbabwe and Somalia come to mind. But as Acton Research Director Samuel Gregg points out in his latest piece over at Public Discourse, rule of law can also be subtly eroded in wealthy countries. The negative consequences for risk-taking, entrepreneurship, and long term investment, he says, can be far-reaching.

Risk is an inherent part of the workings of market economies. But Gregg notes that’s not the same thing as uncertainty:

Measurable risks are . . . no deterrent to the making of economic choices. If we take them seriously, they help us to calibrate our economic choices to be consistent with our responsibilities, resources, and opportunities. The same measurements also allow us to distinguish between prudent risk takers and the reckless, and reward them appropriately. Uncertainty, by contrast, involves those risks that cannot be quantified. It can occur either because of the sheer complexity of a given situation or because the subject matter cannot be reasonably measured. As long as a situation of uncertainty persists, it will deter many people from even considering whether to take economic risks.

Uncertainty in America, according to Gregg, is being magnified by the sheer complexity of laws such as the United States Internal Revenue Code:

A tax code of this size and complexity which is subject to so many sources of potentially conflicting official and semi-official explanations is bound to embody significant contradictions, and offers considerable scope for arbitrary decision-making. Uncertainty is the result. It’s also valid to claim that the same tax code may well be impossible for large numbers of honest law-abiding citizens to understand and comply with—not to mention difficult for conscientious civil servants to administer justly. As a result, many people may unintentionally violate the law or simply choose to forgo making any number of potentially wealth-creating opportunities for fear of violating the law.

Another example is the thousands upon thousands of pages of legislation being passed by Congress every year. As Gregg writes:

Then there are the rule-of-law problems associated with the sheer volume of law that directly shapes American economic life. The 2010 healthcare reform legislation, for instance, amounted to 2,700 pages. Not far behind it in length was the 2010 financial overhaul act: a mere 2,300 pages. More than a few legislators have confessed to never having read either piece of legislation in its entirety. Nor should we assume any great familiarity on their part with the thousands of pages of legislation which these acts superseded, integrated, or reinterpreted. The possibility that many laws governing healthcare and financial services have subsequently been rendered unclear, inconsistent, and impossible to comprehend is high.

These erosions of rule of law, Gregg says, result in large incentives not to take risks and not to make long-term investments. It also encourages entrepreneurs to look elsewhere for a more friendly, stable and comprehensible legal environment.

Read the piece in its entirety at Public Discourse.