Tuesday, December 23, 2008

Two ideas on how to support startups

I recently won a "new economic engine" competition held by Eesti Ekspress. The idea of the competition was to find new ideas on how to shape up the Estonian economy. My idea was to introduce an "enterpreneur salary". The idea in a nutshell is that when you start a business, have a valid business plan and agree on some financial results, the state would pay you a "salary" during the first 6 months of starting the business. This would lower significantly the barrier of starting your own business. Of course the whole mechanism should be thoroughly planned to avoid possible maluse. But as "SeedCamp" type of competition price could be one of the possible solutions.

Another thing that the startup blogosphere has not covered very thoroughly is all kinds of business problems - customers not paying, weak contracts, co-founders cheating on each other. It is clear that all these bad things happen and enthusiastic startups are even a better target for cheating than professional businessmen with years of experience.

If you find time then please comment if you know any country or organizations that support their startups with "enterpreneur salary" type of support? How to minimize the risk of fraud for new businesses? Is there any legal advice offered by business incubators? How to minimize the risks for international businesses?

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