Entrepreneurship

April 30th, 2014 at 3:00 pm by David Farrar

An interesting UK report on and specifically “SuperEntrepreneurs“. Well worth reading the full report.

Their summary:

  • SuperEntrepreneurs founded half the largest new firms created since the end of the Second World War
  • There is a strong correlation between high rates of SuperEntrepreneurship in a country and low tax rates
  • Equally, a low regulatory burden and high rates of philanthropy both correlate strongly with high rates of SuperEntrepreneurship
  • Active government and supranational programmes to encourage entrepreneurship – such as the EU’s Lisbon Strategy – have largely failed.
  • Yet governments can encourage entrepreneurialism by lowering taxes (particularly capital gains taxes which have a particularly high impact on
    entrepreneurialism while raising relatively insignificant revenues); by reducing regulations; and by vigorously enforcing property rights.
  • High rates of self-employment and innovative entrepreneurship are both important for the economy. Yet policy makers should recognise that they are not synonymous and should not assume policies which encourage self-employment necessarily promote entrepreneurship.
  • Policy makers should use a definition of entrepreneurship which is based on innovation.

I’m not sure NZ has any SuperEntrepreneurs yet (have earned over one billion dollars) but Rod Drury can’t be far off. Sam Morgan also.

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14 Responses to “Entrepreneurship”

  1. KiwiGreg (3,181 comments) says:

    “I’m not sure NZ has any SuperEntrepreneurs yet (have earned over one billion dollars”

    If you read the report you will find NZ has one (by their definition) – see table page 20.

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  2. wikiriwhis business (3,883 comments) says:

    Entreprenuers would be super if they actually created employment.

    soon as you start employing the bureaucracy works against you.

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  3. leftyliberal (642 comments) says:

    If you take a look at the awesome statistics they managed in the report (look at practically any of the scatterplots) you can see practically of the relationships is being driven by a single country with the highest rate of “self-made billionaires”, Hong Kong. Dropping that single data point would reduce most of the relationships found to the noise level.

    That’s not to say that relationships are there: Ofcourse they are. The ability to amass billions in a short period of time is necessarily constrained by features of the environment within which the business lies. But the conclusions they reach are so highly dependent on one or two data points (mainly HK, Israel and the US) that they should be taken with more than a pinch of salt.

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  4. KiwiGreg (3,181 comments) says:

    @leftyliberal I’d think you’d be on stronger grounds arguing all they have shown is correlation, not causation.

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  5. igm (1,413 comments) says:

    David Parker tried to become an entrepreneur but lost all his business partner’s money, then slithered into Parliament under the Labour umbrella. He then denied, in Parliament, to falsifying documents re the venture, ending up in hot water and back of the class. This type of charlatan is not good for NZ. And to think “Tojo” needs to use him as finance spokesman; what a crazy, rainbow-led disgrace the party is.

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  6. dime (9,470 comments) says:

    Not sure Sam Morgan qualifies – he ripped off Ebay. Don’t get me wrong, God bless him for cracking it big but not true Entrepreneurship IMHO.

    Isnt the big problem in NZ that we cash out early and love life? Rather than cracking on and continuing to build?

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  7. CJPhoto (218 comments) says:

    Graham Hart is one isn’t he – he made the Forbes list. I assume that is what the table on pg 20 refers too.

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  8. Judith (7,679 comments) says:

    Isnt the big problem in NZ that we cash out early and love life? Rather than cracking on and continuing to build?

    That’s a problem? I would rather have ‘she enjoyed life’ than ‘the richest woman in the cemetery’ written on my headstone. Once my children are taken care of, I’ll be damned if I am going to work my arse off and die an early death so that someone can talk about my ‘riches’ sometime in the future.

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  9. Fentex (867 comments) says:

    Equally, a low regulatory burden and high rates of philanthropy both correlate strongly with high rates of SuperEntrepreneurship

    I’m not sure NZ has any SuperEntrepreneurs yet (have earned over one billion dollars) but Rod Drury can’t be far off. Sam Morgan also.

    I bet there’s a stronger correlation between size of an economy and the incidence of corruption than any of these other points.

    I personally believe that corruption is more likely the defining point – in it’s absence, without the cancer that eats opportunity, I would expect entrepreneurs to blossom in most places.

    Though what does it matter that some get very rich? I don’t think that’s necessarily a positive thing as it suggests an absence of competition that in idealised free markets should increase where profit exists to compete for.

    How come Saudi Arabian Sheiks, the Sultan of Brunei and Party Officials in China, Russian oligarchs et al are not held up as positive exemplars for the billions they’ve socked away? On it’s own obtaining billions is no recommendation of how to legislate or organise governance nor is it’s occurring obviously positive for everyone.

    Sure we can probably distinguish a preference between Bill Gates, Steve Jobs, Elon Musk and their like and dictators who more obviously thieved their wealth, but we don’t do that solely judging how much money they have. We already value the principles that we may prosper under.

    And as such we might value principles that preclude making billions – remembering it’s NOT having the billions we value.

    So cherry picking points to back a pre-decided argument for what one values, and then claiming some peoples success at making billions, isn’t a good argument.

    I’d rather defend principles of freedom and liberty on their own merits than try and enlist the success of some who prospered on the basis of their wealth as a justification for my arguments.

    Not sure Sam Morgan qualifies – he ripped off Ebay.

    The topic is Entrepreneurship, not innovation.

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  10. leftyliberal (642 comments) says:

    “I’d think you’d be on stronger grounds arguing all they have shown is correlation”

    The point is they haven’t even shown correlation when the correlation is being driven by one or two of their 40-odd data points.

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  11. Colville (2,085 comments) says:

    I wonder if Putin makes the grade as an entrepreneur? how many fingernails did he pull out to earn his billions?

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  12. big bruv (13,331 comments) says:

    When Xero makes a profit we might be able to laud Rid Dury but lets wait a bit shall we.

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  13. wikiriwhis business (3,883 comments) says:

    “Isnt the big problem in NZ that we cash out early and love life? Rather than cracking on and continuing to build?”

    Good thought Dime

    But takes us back to the bureaucracy.

    Hence no real business role models.

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  14. mister nui (975 comments) says:

    Sam Morgan! You’ve got to be fucking joking.

    He’s not an entrepreneur by any sense of the word. He created a knock-off of a larger worldwide entity, which wasn’t established here. He very luckily sold it at the peak of the market, for a ridiculously over-priced sum.

    Since then, he has done SFA but ride on the coat-tails of other actual entrepreneurs.

    Rod Drury, another story all together.

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