Regarding the queries sent through.
I have spent the past ten years working in economic development in South
Africa. My organisation (Business Beat) has been quite successful off a
very low base.
I think the queries have made an assumption regarding both wealth and the
idea of a state. In countries throughout Africa (and developing countries
elsewhere) poverty is endemic. Most of this is as a result of war,
dictatorships are kleptocracies. Anyone who knew how to do anything has
left the country. In places like Liberia, Mozambique, etc the only people
who run businesses are foreigners who come in and set up shop. No-one knows
how to farm. The government basically runs as a proxy of the IMF.
In South Africa we have 40% unemployment.
All across the world creating an "ideal" environment for entrepreneurs has
become vitally important. WTO conferences, GEM report ... lots of research
and information. What is emerging as a standard set of criteria. Tax
harmonisation being one of them.
I'm not suggesting that we give specific advice on how to fill in your
income tax return. But, there are ways in which taxation can be made
simpler. I have spent a year on a panel set up by the South African
government to simplify taxation for small business (I'm the nominal
entrepreneur on the team). We studied 15 countries systems across both the
developed and developing world - while the specific numbers (i.e. tax rates)
may be different, there is surprising conformity in the way good systems
work, and where bad systems break down.
However, even if you have doubts about introducing recommendations on
policy, I believe that a resource that informs people as to how specific
types of businesses work would be extremely helpful. The resource will not
be able to tell you how to become Bill Gates. 99.9% of businesses are
"lifestyle" businesses - places run by families doing mundane things like
laundromats, diners, stationery shops, and so on. More importantly, the
simplest businesses are the most important in states where everything is
broken.
A friend of mine is currently working with the UN in Liberia. There is
nothing. No roads. No electricity. No running water. No sanitation. All
that is left are a few bombed out buildings. A resource that says - this is
how you farm, this is how you dig irrigation, etc - and most importantly -
this is how it all fits in a business context so you don't have to wait for
international donor aid (which is probably all going to tsunami victims
right now).
As for everyone's "shock" at my claim that wealth is easy. Four years ago
I
developed a project to demonstrate just how easy it is to earn a living. I
called it The Thousand Rand Challenge. R 1 000 :: $ 200. We invited people
to send us business ideas that would cost only $ 200 to start. We selected
the best ideas and candidates, helped them develop their business plans,
provided them with the money, and got them started. On average, over the
past four years of running this event, people turn $ 600 per month by the
end of the fourth month. That may not sound like much, but going from
nothing to an income that (in a poor country) allows you to feed your
family, send the kids to school and live in a proper house (instead of a
plastic and cardboard shack) is outstanding.
The Western Cape government likes the idea so much that we are currently
preparing to launch a project that would create 1 000 businesses based on
this model. None of these businesses would excite you: painting, building,
welding, cookies, fried fish. Nothing world beating. It doesn't have to
be.
I'm suggesting setting up a how-to manual. It doesn't have to be
prescriptive. There is no suggestion of setting up monopolies (no
anti-trust problems).
As for me and why I feel I can do this (but need help simply because it
would take me forever to do this on my own): I have developed training and
methodology used widely in South Africa for teaching entrepreneurship and
supporting new businesses. I am happy to make this publicly available. I
have chatted to other industry professionals who are willing to put up
generic plans for different types of businesses. We'll make it part of
future Thousand Rand Challenges.
I work on paid consulting work about 5 hours per week and earn $ 100 000 per
year. That may not sound like much in the US, but it's quite a lot here.
The rest of the time I work on economic development in nearby shanty towns,
or go kayaking or climbing the mountain.
Poverty is horrifying. It is raining today and down the road from me half a
million people are living inside plastic and cardboard single room shacks.
I have assisted over 1 000 businesses to start in the past ten years,
creating 15 000 jobs. But, to even touch poverty in this country, we have
to find employment for over 6 million people. No matter how hard I work, I
cannot put together enough information or disseminate it quickly enough. As
for governments, our president doesn't even believe that AIDS exists.
Only something like Wikineur could put a dent in the problem in our
lifetimes.
Really, it won't be hard. We just have to start.
Gavin