Our motto should be, “Start-ups, not bailouts: nurture the next Google, don’t nurse the old G.M.’s.”
The capitalist way is to reward risk. However, banks are notorious for not giving out non "asset-backed" loans. And even with the billions of bailout money received, they aren't exactly taking risks by investing in the innovators; they're even more risk-averse.
So how does an entrepreneur who is bursting with good ideas surpass this obstacle?
I think that people -- for example, those who lost everything in one of those natural disasters during the last 8 years -- who have nothing (no assets, so to speak) are in the prime positions to innovate.
Maybe what we need is a stimulus plan more to reward non-asset backed risk takers . . ..
> However, banks are notorious for not giving out non "asset-backed" loans.
I wouldn't say notorious, that has a negative connotation. All jokes about the current situation aside. Banks aren't supposed to make risky loans, they aren't supposed to lose their capital. All loans they make should be guaranteed by something, even if it's just the word of a wealthy individual like a parent cosigning a loan for a child.
True, true. What I was thinking (but didn't expound upon) was tangible vs. non-tangible asset loans. The "word of a wealthy individual" in your example would be the latter. Most intellectual property would also be the latter.
| So how does an entrepreneur who is bursting with good ideas surpass this obstacle?
I've been thinking about this a lot lately ... business has been good to me, and I'm on my first "cusp" -- the point where I've got too much business to handle, but not enough resources to expand -- and so I've found that I'm starting to get ahead of myself in thinking about what's going to happen next.
The thing about good ideas is, they're almost worthless by themselves. They're only one part of a much larger formula involving things like hard work, dedication, focus, and good teams.
The funny thing about more money is, it doesn't really make any of the other parts of the formula any easier. A little, maybe -- I'd love to have just a few thousand dollars extra to cover my first employee's paychecks and do a little marketing -- but it's not going to make sure that I keep working hard, or that I stay focused on the task-at-hand, or that I remain dedicated to my purpose.
So, to get back to your question, an entrepreneur needs to write down their good ideas, when they have them, and then remind themselves to get back to work, and realize that funding is just one minor obstacle, and solving that one won't make their business much more viable.
Almost. A lot of banks took lots of risk - too much risk. Eventually the risk has to be managed, and if it's managed poorly we get what we have today. The capitalist way is to reward the providers, not the risk takers.
as long as its legal to lobby congress it'll never happen. The startup system can't get the help it needs from the government since they are more less powerless. The old GM on the other hand can invest a couple mil into buying congress, because they'll get that money back with the first bill that passes in their favor
Our motto should be, “Start-ups, not bailouts: nurture the next Google, don’t nurse the old G.M.’s.”
The capitalist way is to reward risk. However, banks are notorious for not giving out non "asset-backed" loans. And even with the billions of bailout money received, they aren't exactly taking risks by investing in the innovators; they're even more risk-averse.
So how does an entrepreneur who is bursting with good ideas surpass this obstacle?
I think that people -- for example, those who lost everything in one of those natural disasters during the last 8 years -- who have nothing (no assets, so to speak) are in the prime positions to innovate.
Maybe what we need is a stimulus plan more to reward non-asset backed risk takers . . ..