Sunday, November 15, 2009

How to Promote Entrepreneurship

The country that has led the world in promoting entrepreneurship has also done the most to plug itself into global markets. The Israeli government’s venture-capital fund, which was founded in 1992 with $100m of public money, was designed to attract foreign venture capital and, just as importantly, expertise. The government let foreigners decide what to invest in, and then stumped up a hefty share of the money required. Foreign venture capital poured into the country, high-tech companies boomed, domestic venture capitalists learned from their foreign counterparts and the government felt able to sell off the fund after just five years.

Schumpeter: Fish out of water | The Economist

One shining example of promoting private enterprise. Interesting enough in Kuwait we have a similar concept in the National Technology Enterprises Company (NTEC) which was founded and funded through Kuwait Investment Authority (KIA) in 2002 with KD 100 m in capital. I am not so sure it has done much so far.