If the solution to the problem of allocating resources to the organisations with the highest propensity to create jobs was as simple as this, such intervention would have been legislated decades ago through the tax system. Both entrepreneurs and fund managers agree that the problems are more complex and that it would be impossible for entrepreneurs to absorb this amount of start-up capital with their current support structure.
Despite generous support for angel investment by governments such as those of the UK and South Africa, investment has not been forthcoming. Based on the KPMG study cited above, 47,000 entrepreneurs received seed capital globally between 2010 and 2016 – less than €60 billion.
In a world of downsizing, automation and business process outsourcing, a job for life is a thing that my father used to talk about. Large businesses, governments and the NGO sector around the world are losing jobs, causing grinding poverty, extremism and social unrest.
Since time immemorial, humans have sought ways to build trust, thereby enabling them to transact more cheaply in their move towards specialisation and away from subsistence. This need gave rise to barter, which in turn was replaced by money.
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