

Ask HN: How can the Government increase the number of entrepreneurs? - ekpyrotic


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crispy2000
By staying the heck out of the way.

In any kind of society, no matter whether centrally planned or not, there will
be people who seek out and solve needs for others, with an expectation that
they'll be compensated. Even in the communist USSR, people would have side-
businesses, sometimes dealing in the black market. While "illegal", these
businesses were able to thrive because someone was there to fulfill the needs
of others.

One of the worst things to do is to create government programs "to increase
the numbers of entrepreneurs". Why? Because while some entrepreneurs will
benefit, those who benefit the most are the same characters who know how to
work the government to their benefit. Example: the government has set-asides
for "small and minority-owned businesses". I've seen large companies partner
with some small businesses, set a minority person as a figurehead, use their
own people to successfully pursue the government contract, and laugh all the
way to the bank. Small business, minorities, and even the figurehead guy don't
really benefit from the scheme, do they?

If you let people keep more of the money they make, rather than redistribute
it in an attempt to build entrepreneurship, then those who make products or
deliver services _that are needed_ will benefit. Otherwise, it's just those
who are best at playing the game.

~~~
ekpyrotic
I wasn't really talking about 'schemes' and 'initiatives' here. I wanted
something more material. Very specific policies that could have a positive
impact. I definitely didn't mean eye-catching new mechanisms that would
radically disrupt the free-market, like corporate giveaways.

One might be Intellectual Property reform. Another might be the introduction
of computer science into the UK/US curricula. Another might be the
liberalisation of immigration policy. Then there's superfast broadband
infrastructure roll-outs. Maybe strengthening competition law in some online
markets. Etc. Etc.

Couched in a different terms, I might say: I agree that the Government should
get out of the way. But /how/ does the Government get out of the way?

I wanted to understand how to organise the traditional hierarchy of digital
policy priorities.

