Using International Finance to Create a Marketplace of Entrepreneurs
Singapore Management University; London Business School; Nanyang Technological University
May 19, 2010
As the Copenhagen talks resulted in yet another stalemate, I started to think that we needed a new way of thinking about environmental problems to tackle it. We need to bring more entrepreneurs into the field. To encourage entrepreneurs there needs to be a well functioning successful marketplace which requires three things – a) demand, b) supply and c) a trustworthy place for exchange. This paper shows a way in which to achieve this objective. a) Regulatory Reforms – increase government support for environmentally friendly ideas with tax credits. The governments would also help with increasing demand and encouraging entrepreneurs. b) Transnational Organizations – let the IMF and World Bank underwrite part of the investments and change the current debt repayment conditions to encourage environmental entrepreneurs. They will also help encourage transfer of technologies by underwriting technology spread in exchange for a percentage of the return with each government. c) Innovation Bonds – issue innovation bonds to raise capital purely to fund innovation – this will tie together the private financial sector and the governments.
We can thus merge the financial backing, risk mitigation, legal rights and accountability to combine the strengths of the private sector investors, the government and the transnational organizations to encourage entrepreneurs. We can help stoke innovation right from the grassroots level of new companies to institutional entrepreneurship.
Number of Pages in PDF File: 5
Keywords: Entrepreneurship, Climate Change, Innovation Bonds, Regulatory Reform, Encouraging Entrepreneurship, Environmental Problems, Marketplace
JEL Classification: M13, N20, D4, Q2working papers series
Date posted: May 22, 2010
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