Tweet

Entrepreneurship and the Money Myth

Written by: Paul Kedrosky

Article Overview: There are many myths in the venture business -- I alluded previously to the myth of U.S. VC value add -- but I was reminded of another one today. The myth? That access to money matters.

Entrepreneurship and the Money Myth

There are many myths in the venture business -- I alluded previously to the myth of U.S. VC value add -- but I was reminded of another one today. The myth? That access to money matters.

Here is some drive-by proof, with the Milken Institute having just released its 2006 capital access index figures. The top ten (with 2005 ranking in parenthesis) as follows:

1. Hong Kong (2)
2. Singapore (3)
3. United Kingdom (1)
4. Canada (10)
5. United States (4)
6. Australia (7)
7. Switzerland (12)
8. Netherlands (13)
9. Ireland (10)
10. Sweden (5)

Match this up across these countries with entrepreneurial activity, successful exits, and dominant startups, and you quickly discover pretty much zip correlation, at least in tech, life sciences, etc. Put differently, capital access is, for practical purposes, a wash across developed countries, so the factors underlying entrepreneurial success must be found elsewhere, like risk-taking, clusters, talent, etc.

Related Articles
  The Genius At Work
  MYTHS ABOUT MARKETING TO OLDER PEOPLE
  7 mistakes, and 7 keys to successful entreprneuership.
  18.0 Conclusion: Entrepreneurs and entrepreneurship in Africa
  17.0 What Needs to be Done - Mainstreaming Entrepreneurship: Entrepreneurs and entrepreneurship in Africa

Article Tags: clusters, correlation, developed countries, entrepreneurial activity, entrepreneurial success, hong kong, ireland, life sciences, milken institute, money matters, myth, myths, netherlands, parenthesis, proof, singapore, startups, switzerland, vc, venture business



Related Forum Posts
Is The E-Myth The Ultimate Franchise Guide? - Ever since the E-Myth made its way through to becoming one of the most popular books for entrepreneurs, the number of small business owners who have come to me discussing franchising has exploded. Is the E-Myth the reason why so many companies are now looking at franchising their business model? Are there any other resources you can suggest for new franchise owners or people considering it as an option?
E-Myth? What's That? - I second FranchiseBrief... What's the E-Myth? I've never heard of it, although I feel stupid saying so. Any insight available?
Re: Which would you start: a Blog or Online Community? - It is a difficult decision to make. Lets start it this way - What are you more interested in? Money? or Friends? or Both? If its purely Money, then Blog might be an appropriate answer. But consider this - It will be people (visitors) that will bring traffic to your blog and then Money will follow. This will be possible after a time and during this time it will be your friends who will be the starters. If you are looking for friends only, then its true that not many will be interested in knowing how you have beaten them in the game or the other way round. So it will be preferable to have a Forum where they can share ideas with you and others. But you can share your insider knowledge with them and invite comments from your Blog. You can also put up information on what others (including your friends) don't know about Tennis. The blog you create can provide News, Inside Information and also Techniques that can be used by the new entrants in the world of Tennis.
Re: Hi there! I'm Shanuna Cortez - Welcome Shanuna to the club. We will like you to post and let us know more about British Entrepreneurship Society
Re: Hello everyone! - Hi Michelle, Welcome to the club. You will find all the information you need on Entrepreneurship here. What are your business?


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Providing Feedback

When Living the Dream isn't enough!

Living on The Edge of Chaos...

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.