Thursday, August 28, 2008

Entrepreneurship Before Free Market?


Recently, the Korean Ministry of Knowledge and Economy decided to hold annual "Entrepreneurship Weeks" to foster economic growth. I applaud the intentions behind this move, but entrepreneurship cannot exist without economic freedom, dreamers and risk-taking.
Everyone always hears about Bill Gates and how he dropped out of Harvard to start Microsoft. However, according to The Millionaire Next Door, 80% of America's millionaires are first generation rich. Self-employed Americans account for 2/3 of U.S. millionaires. The top 100 new companies in the U.S. had $5.7 billion in revenue and are projected to employ 15,000 workers by 2009. (Entrepreneur Magazine August 2008)

If you want to foster entrepreneurship, you need to create an environment where people can dream. This is not possible if everyone wants the safety and security of a civil servant position.

In addition, there must economic freedom without barriers to market entry. If government regulations designed to protect large corporations exist, then what chance does a start-up have? The very notion of taking on a chaebol seems absurd. Moreover, if everyone's dream is to work for a chaebol, who will be left to challenge them? First you dream, then you take calculated risks, but before that -- there must be hope.


Index of Economic Freedom 2008

Rank

Country

Summary
index

1

Hong Kong

90,3

2

Singapore

87,4

3

Ireland

82,4

4

Australia

82

5

United States

80,6

6

New Zealand

80,2

7

Canada

80,2

8

Chile

79,8

9

Switzerland

79,7

10

United Kingdom

79,5

11

Denmark

79,2

12

Estonia

77,8

13

Netherlands

76,8

14

Iceland

76,5

15

Luxembourg

75,2

16

Finland

74,8

17

Japan

72,5

18

Mauritius

72,3

19

Bahrain

72,2

20

Belgium

71,5

21

Barbados

71,3

22

Cyprus

71,3

23

Germany

71,2

24

Bahamas, The

71,1

25

Taiwan

71

26

Lithuania

70,8

27

Sweden

70,4

28

Armenia

70,3

29

Trinidad and Tobago

70,2

30

Austria

70

31

Spain

69,7

32

Georgia

69,2

33

El Salvador

69,2

34

Norway

69

35

Slovakia

68,7

36

Botswana

68,6

37

Czech Republic

68,5

38

Latvia

68,3

39

Kuwait

68,3

40

Uruguay

68,1

41

Korea, South

67,9


The Heritage Foundation (http://www.heritage.org/index/)

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