Government Support For Entrepreneurs
This article is written by Clinton James, a Contributor Author at Startup Turkey.
Joshua Burke is a staff at the U.S Mission in Turkey where he works at the office of Trade and Commerce. On other fields, Joshua Burke is an entrepreneur and investor at the same time. Joshua Burke gave a speech during the 2016 Istanbul Turkey summit.
It is critical to distinguish that the startups and companies may fail, but the founders and people behind those companies may not. These entrepreneurs have, however, learnt from their own mistakes and made a motion forward. Startups need to communicate the government of their needs so as to be heard effectively, that way, the government and investors can work on addressing and putting up more support to them.
Joshua Burke, speaking in one of Startup Turkey’s events, is an entrepreneur, investor and U.S diplomat or Foreign Commercial Officer at U.S Commercial Service says that the governments have a major role in ensuring the success of businesses in their individual countries. As we all know, a country with a stable government fosters a suitable sustainable environment for startups and other businesses to prosper. There are a number of ways in which governments can support startups in their countries.
To begin with, the government can support the initial ecosystem through financial support. As a good example, Hamdi Ulukaya initially moved to New York from Turkey in 1994 to study English. After a few years he began working with a cheese company that he opted to seek funds as a loan to take up. From an advertisement in the newspaper, he saw a yogurt factory, which motivated him to start.
However, he did not have the money to buy or carry and decided to work with small business organizations in the United States to get loans for the same. It was given to him, even though only a few years later the first Chobani yogurt was sold in a supermarket in New York. This technology generated revenues of more than $ 1.5 billion. Hamdi connects this success with US government subsidies and bonds.
Secondly, governments also help support startups by providing infrastructure. WyR (what you rave) was a company founded in Chicago by the Hamdi Ulukaya. The founder realized that consumers were more likely to purchase goods and services based on recommendations of friends and family rather than other factors. However, in less than 12 months after starting the company, it failed. This did not make the founder give up though. He realized that he had been asking the wrong questions for his growth. The problem was not in the recommendation network he created but that individuals were not being connected in effective ways.
This was another opportunity, hence he founded another company called Kahoots, which has become the world's leading human rights management platform and application. This success was influenced by 1871, a program partly funded by Illinois. So by providing 1871, which is constitutionally funded by the government, it has some of the fastest internet speeds in Illinois.
The government has supported the infrastructure to promote new businesses in this field. WyR and its failure among other examples must also encourage the government to support the law and develop policies that support failure, because more than 95% of startups begin to collapse in the first three years.