At the large corporate level, we need to look at incentives for companies making large investments that will provide technology, skills, employment, capital and export earnings.
In the business community, we need to promote a culture that will celebrate those who give it a go whether their businesses prosper or fail. The GEM report found a culture that can be uncomfortable with entrepreneurs, success and failure, an attitude that is not likely to cultivate the sort of support entrepreneurs need.
Entrepreneurship is difficult enough without having to deal with suspicion and criticism - and that is for those who succeed. Harsh moral judgments await those who fail, coupled with assumptions of silly mistakes and possibly bent rules along the way.
Quickly following a company collapse comes the call to make the directors personally liable. This blaming culture and too simplistic laws governing the personal liability of directors can make it hard for entrepreneurs to attract to their boards the mentors they need.
The GEM report indicates we have a high level of angel capital available, but a low level of venture capital.
To some extent venture capital investment is hindered by a lack of business skills displayed by entrepreneurs needing capital. They need more training in putting together a professional presentation with realistic projections.
Our venture capital market is also young. Venture capital funds claim to offer smart money, using their skills and contacts to assist an investee business to realise its business goals.
But with experience still thin on the ground, the venture capital industry's track record in delivering on this promise is patchy.
We must focus hard on our education system if we want an entrepreneurial society. We have fooled ourselves for a while that we have a world-class education system, yet now we are realising we have slipped behind in several areas.
As a community we invest too much educational resource in skills that are not inherently likely to create wealth. And at a tertiary level we leave people to choose their courses. Instead we could introduce incentives for courses that promote innovation and entrepreneurship.
In the end, we need to understand that prosperity is harder to come by than it has traditionally been. We need our leaders to deliver a vision, we need a flow of initiatives at all levels of society, and we need the drive to overcome the hurdles that stand between a good idea and a world-class business.
The good news is that the report confirms what we always knew - that we have what it takes.
* Mark Lowndes is principal of corporate and commercial lawyers Lowndes Associates, a sponsor of the GEM study.
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