Venture capital remains a critical ingredient for the growth of new businesses, according to a recent survey by the Monitor Group, one of the world’s leading advisory and consulting firms. The firm just released its “Path to Prosperity: Promoting Entrepreneurship in the 21st Century” report that surveyed entrepreneurs in 22 countries to determine attitudes required for start-ups around the world.
Venture capital financing strategies such as IPOs, spin-offs and buy-outs showed a high correlation with actual levels of entrepreneurship in a particular region. And not only did VC activity provide a direct source of funding, but the possibility of funding – such as a public offering – inspired future entrepreneurs by highlighting the big rewards possible from risk taking and launching businesses, the report says.
Other key drivers of entrepreneurial activity included lowering taxes, providing the right incentives for the commercialization of research and development, and the teaching of entrepreneurial skills at all education levels – from elementary school through university.
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