What has the state got to do with the venture capital market?

2003 ◽  
Vol 53 (3) ◽  
pp. 271-291 ◽  
Author(s):  
J. Karsai

Since the development of young companies with a good growth potential can also be expected to boost economic growth, reduce unemployment and enhance competitiveness, economic policy makers consider it a matter of prime importance that the venture capital industry provide appropriate capital supply for their development. Many countries implement central programmes to promote the venture capital financing of the development of enterprises that would have no access to venture capital on a purely market basis. The experience in Hungary is that state intervention in the venture capital industry mainly has political reasons, it uses budgetary sources sparingly and it is isolated from the private sector. But for its almost complete inefficiency, state activity would have softened the conditions of competition, crowded out the private sector and given preferential treatment to the political clientele. Realizing the abortive nature of its intervention, the state made no effort to identify the causes of failure and the role of supply and demand factors, respectively, hindering the venture capital supply of the small and medium-size enterprise (SME) sector. The intervention practice chosen by the state most recently is contrary to the practice of the European Union in several respects — a circumstance dooming government measures to boost the venture capital industry to failure again.

2019 ◽  
pp. 43-54
Author(s):  
Hazem Hanbal ◽  
◽  
Saad Metawa ◽  

Globally, Small and Medium Size Enterprises (SMEs) are considered the main contributors to economic activities. In the European Union, SMEs account for around 67 percent of the overall employment by the private sector and were considered the cushion that protected the economy during the recent financial crisis in 2008 [2]. While in the USA, and according to the Small Business Administration and Small Business House, SMEs are responsible for more than half of the private sector non-farm GDP of the nation. In the Middle East and North Africa (MENA) region, a recent study by the World Bank revealed that SMEs employ around 40 percent of the workforce in the formal sector (non-agriculture). This number would increase if the informal sector were included. Generally, SMEs are seen as the potential for economic development and a significant source for jobs creation, especially when looking into developing countries. In Egypt, with the declining role of the government being the primary employer until the nineties of last century, and the private sector taking over this role, and the fact that SMEs are the significant portion of the private sector, it is significantly essential to support SMEs for the creation of new jobs, and overall social stability. Constrains facing SMEs are many and are usually different from those facing large businesses. It is also observed that rates of business failure within SMEs are generally higher than with large corporates. This paper aims to seek to identify the reasons behind the failure of SMEs, with a look into the Egyptian and Middle East situations.


AGROFOR ◽  
2018 ◽  
Vol 2 (1) ◽  
Author(s):  
Renata MARKS-BIELSKA

The aim of the paper has been to diagnose factors determining agricultural landprices, classifying them and determining which of them plays the most importantrole. The considerations were based on selected subject literature, the results ofresearches conducted by other authors, as well as analysis of statistical data from theCentral Statistical Office of Poland and Eurostat. Factors determining agriculturalland prices in Poland can be divided into two groups: 2) Market: supply and demandfor agricultural land allotted to agricultural production; supply and demand foragricultural land that can be, in compliance with the binding law, allotted to purposesother than agricultural; simultaneous functioning of two market segments - private(on which a majority of land trading is conducted among farmers) as well as the statemarket segment – the Stock of Agricultural Property of the State Treasury managed,on behalf of the owner - the State Treasury, by the state institution - the AgriculturalProperty Agency; profitability of agricultural production. 2) Non-market: historicalconditions – dominance of private property in Polish agriculture, both in the marketeconomy and in the previous economic system; tradition, culture - passing farmsfrom generation to generation; Poland’s accession to the European Union andcovering Polish farmers with common agricultural policy instruments; ending thetransitional period of purchasing Polish agricultural properties by foreigners on 1May 2016. After this period, the hitherto limitations (special permits) for foreignersin purchasing agricultural properties in Poland were lifted.


2016 ◽  
Vol 13 (3) ◽  
pp. 191-202 ◽  
Author(s):  
Ing. Jaroslava Rajchlová ◽  
Ing. Veronika Svatoaová

The main aim of paper is seen at two levels: the first level to assess the situation on the venture capital market in the Czech Republic based on the results of a comparative study of selected countries of European Union is the area of venture capital financing. The second level is, then, to propose measures, whose implications could increase the effectiveness of venture capital to the business sector in the Czech Republic. The main purpose of the paper is to identify internally homogeneous groups of the EU states regarding the situation on the venture capital market in the European Union Member States. The aim of this article is supported by relevant statistical data for the period 2008-2013 to assess the legislative framework of venture capital market in the Czech Republic and other selected European countries. Based on the results of cluster analysis, EU countries were identified, Hungary and the Netherlands, in which legislative conditions with venture capital market were subsequently analyzed and the results were compared with the situation in the Czech Republic. The Netherlands as a representative of the countries with developed market risk capital, Hungary as a representative of CEE countries. The problem of undeveloped VC market in the Czech Republic is not in demand for venture capital, but in its supply. Pension funds and insurance companies cannot invest more than 5% in risky assets. In the Czech Republic, there are no tax incentives to attract investors and even government programs that could complement the missing investors and support the creation of venture capital funds. This low level of venture capital usage for the development of enterprises could also be seen in misunderstanding and ignorance of this form of financing, the inability of management to prepare a business plan and to attract a potential investor, fears of administrative burdens arising from an investor and finally questionable return on investment when, for example, public offering of shares, which achieves a high appreciation, is in the Czech Republic underused. Keywords: venture capital, benchmarking, cluster analysis, Ward’s method, CEE countries, EU countries, Czech Republic, Hungary, Netherlands. JEL Classification: G32, M21


1997 ◽  
Vol 05 (01) ◽  
pp. 13-26 ◽  
Author(s):  
ANTON T. KRUFT ◽  
ANDREA SOFROVA

In economies in transition, the newly emerging private sector lacks professional, financial, and economic structure provided by ministries and government agencies to state-owned enterprises. In mature market economies, the small and medium-size enterprise (SME) sector has been acknowledged as being the backbone of the economy. Research on the European Union reveals that the success of entrepreneurship depends on a conducive climate which includes intermediate support structures, such as branch/sectoral organisations, specialised SME research organisations, business advisory centres, innovation centres, employers' organisations, etc. The experience from the economies in transition in Central and Eastern Europe shows that the entrepreneurs suffer from weak support of financial, management, environment and trade services. In order to develop a healthy SME sector, a favourable environment should be created and supporting intermediate structures established. Such support organisations should, in addition, bridge the gap between government agencies and the private sector.


2021 ◽  
Vol 2021 (1) ◽  
Author(s):  
V. Maslov

In recent years, cooperation between the state and private business is one of the prerequisites for implementing the strategy of economic development of Ukraine's economy. The separation of forms and models of public-private partnership depending on the industry, type of partnership and form of socio-economic significance of projects will ensure the creation of a platform for the formation of national competitiveness. The purpose of the article is to identify and analyze domestic and foreign models of public-private partnership, the formation of prospects, priority areas for their implementation and realization. To achieve this goal, a set of general scientific methods is used: theoretical generalization - to determine the nature and content of public-private partnership models, the method of scientific abstraction - to identify areas of application of models of cooperation between government and business, comparison - to identify models -logical - for theoretical generalization and formulation of conclusions. The analysis and generalization of public-private partnership models revealed the content of their classification proposed by the World Bank and taking into account the basic principles of risk sharing between the state and the private sector: "Management and lease contracts", "Concessions", "Projects from scratch" "And" Transfer of assets ". It is noted that the main PPP models used in the implementation of infrastructure projects in the European Union differ slightly from the above classification, mostly in the degree of involvement and transfer of project risks from the state to the private sector. The main models of public-private partnership in the European Union are analyzed, which according to the study include: service contract; management and operation contract; lease agreement; turnkey construction; design, construction, financing and operation. It is studied that in the United States three models of PPP are most often used: design and construction; design, construction and operation / maintenance; construction, operation and transmission. It is proved that for the full effect for the national economy it is necessary to implement the characteristic features of several of the analyzed models of public-private partnership. A promising area of ​​research is the need to improve approaches to implementing the principles of public-private partnership, given the study of structural classification of forms and models, the etymology of the concept of partnership in dynamic economic conditions, and the uncertain realities of today.


2020 ◽  
Vol 5 (5) ◽  
pp. 18
Author(s):  
Iryna Antoshyna ◽  
Alina Bondarenko

Today, patronage is the key source of non-governmental support of the socio-cultural advancement of the state because, as the world’s practice shows, the state funding is often not enough for conserving and developing the national and cultural heritage. Across the world and Europe, increasing attention is paid to the traditions of charity, corporate philanthropy is in progress, and business ethics are growing. In developed countries, the pursuit of charity activity is caused by a high level of social responsibility of business entities. Both large corporations and wealthy people establish charitable funds or provide a good deal of money for relevant purposes. The problems of patronage or sponsorship as means for guaranteeing the realization of socio-cultural programmes, research initiatives and continual activity of not-for-profit organizations are topical and need an extension study in terms of conditions and prospects for the development. The purpose of the article is the analysis of the experience of administrative regulation of patronage and sponsorship in different countries and its growth potential in Ukraine in the context of international integration and scientific and technological progress. The situation is complicated by the fact that this regulatory scope has originated more recently in the world’s practice, and many problems remain unsettled. For example, let’s consider some forms of financial rewards used in the rest of the world. In the developed countries, there are models of cooperation with a private fund in the social, cultural, academic and other spheres of social life. They are as follows: the state as a leader; private fund as a leader; partnership and functional division of labour between the state and capital. In social practices, they usually co-exist with a dominant one of them. The first model prevails in France and Italy, the second – in the USA, the third – in the Federal Republic of Germany. Recently, there has been a gradual transition to the third model, which will become dominant in Western countries. Compared to Western Europe, there has been no moral rehabilitation of wealth in Ukraine, which has affected the motivation of charity. It is noteworthy that in the last decade, especially in European countries, state and state-social funds, which are financed using budget funds and the contributions of patrons, have been created. In general, analyzing various forms of patronage and sponsorship in the field of culture of the countries of the European region, it can be argued that in modern Western countries there is a sweeping trend to decrease direct state support of culture by indirect. The attraction of funds of entrepreneurs and non-governmental organizations in various forms is purposefully stimulated by state cultural policy, laws on patronage. In Ukraine, state intervention in the charity area is minimal. It is limited to the statutory regulation of charity activity, registration and accounting of charity organizations. At the same time, some specific normalization of patronage and sponsorship is next to none because it is distinguished among other charity activities mostly by patrons, sponsors, and mass media.


2017 ◽  
pp. 114-127
Author(s):  
M. Klinova ◽  
E. Sidorova

The article deals with economic sanctions and their impact on the state and prospects of the neighboring partner economies - the European Union (EU) and Russia. It provides comparisons of current data with that of the year 2013 (before sanctions) to demonstrate the impact of sanctions on both sides. Despite the fact that Russia remains the EU’s key partner, it came out of the first three partners of the EU. The current economic recession is caused by different reasons, not only by sanctions. Both the EU and Russia have internal problems, which the sanctions confrontation only exacerbates. The article emphasizes the need for a speedy restoration of cooperation.


Author(s):  
Basma Kashmoola ◽  
Fais Ahmad ◽  
Yeoh Khar Kheng

Recently construction companies and real state of SMEs sector of Dubai, reported that they have a combine shortfall of skilled staff of up to 500,000.  In addition to that, recently tourism industry of UAE, one of the most dominating service sectors also reported the severe shortage of qualified hospitality staffs. The shortage of workforce in the industry is one of the major causes of unfair distribution of work load and also an unjust compensation and reward system in the overall industry.  The supply and demand of workforces is also one of the crucial predictor factors for job satisfaction and may lead to quit their job or to migration.While examining the various factors that may affect employee’s intention to leave, many research findings confirmed that job satisfaction caused the highest variance on to leaving intention.  To get the deeper analysis of the job satisfaction and its impact on employee’s intention to leave, many researchers argued that there were many facets of job satisfaction that may cause the leaving intentions and therefore job satisfaction has been considered a variables composed of multiple factors. It is evident that there are many studies had been conducted to examine the relationship between job satisfaction and employees leaving intentions. However, not many studies on the same line have been fully addressed in small and medium size firms in UAE working setting and also most of the studies sampling strategies had focused in industries in developed economies.  Therefore, it is believed to be a gap in the literature in the context of the job satisfaction and intent to leave in SMEs.


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