Government Support for Start-ups – a reality check

Most governments are intent on helping start-ups off the ground and foster entrepreneurship. They create agencies, committees, funds, incubators – creativity abounds!

These institutions receive funding and lots of verbal shoulder clapping. But the road to hell is paved with good intentions!

The money drip provided by the government becomes a drug and the main “raison d’être” for many institutions. Instead of helping entrepreneurs, they spend most of their time (and resources) with political trench fighting.

And when a start-up from their community does succeed commercially, there are immediately half a dozen proud fathers (i.e. government institutions) coming out, claiming responsibility for that success.

We are not denying the need of support to entrepreneurs. Quite to the contrary! But we have to question the feasibility of “too many cooks in the kitchen”.

Sometimes less is indeed more!