Innovation and financing, the keys to entrepreneurship

Business

By CAPosts 03 December, 2020 - 12:01am 110 views

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Millennium Click to see the complete video__OSE0__ACOP Replay__LOSE video__2 __ACOP The weather forecast for this Thursday The wide circulation of a low pressure zone with high cyclonic potential will remain located off the coast of Veracruz, and in interaction with upper atmospheric instability will cause torrential rains in Puebla and Veracruz, and intense rains in Chiapas , Hidalgo, Oaxaca, Querétaro and San Luis Potosí. Likewise, heavy rainfall is forecast in Colima, Edomex, Guanajuato, Guerrero, Nuevo León, Tamaulipas and Tlaxcala, Mexico City, Coahuila, Morelos and Tabasco. La Jornada Weather forecast for this Wednesday For this Wednesday, the low pressure zone in the southwest of the Gulf of Mexico due to Tropical Wave Number 35, which will be located off the coast of Jalisco, and a low pressure channel that will extend over the Sierra Madre Occidental and the center of the national territory, in addition to instability at high levels of the atmosphere and the entry of humidity from both oceans, which will cause rains of different intensities in most of the country. La Jornada Teacher goes daily to Internet cafe to give classes Due to the coronavirus pandemic, covid-19, teachers and students had to return to online classes. It has undoubtedly been a challenge and much more for people who do not have the necessary tools to work or study. Problem Millennium NEXT E

(Expansion) - The drive for an entrepreneurial culture is increasingly recognized as an important engine of economic growth, which impacts productivity through innovation. Various theories suggest that startups are more efficient and agile than companies already established in the market. Existing companies that are not kicked out are forced to innovate and be more productive in order to compete. One of the main obstacles to the development of new companies, particularly in Mexico, is financing in the early stages; Entrepreneurs have less access to specialized sources of external financing or seed capital, such as public support, angel investors and venture capital. As a consequence, fewer companies with high growth potential are created and those that are born do so with a suboptimal size and technological level.

There are two sectors that compete for innovation in business: startups and large corporations. However, given the scarcity of financing for the former, a real option is collaboration between them, especially during the process of creating and developing new products / services, working together can bring them great benefits. In the emergence of new ventures, there is a positive relationship between investments in venture capital and their scalability. However, in countries like Mexico, venture capital is not really supporting the emergence of new high-impact ventures; The foregoing is due to the fact that these early-stage startups generally do not have realizable assets, or only have intangible assets of difficult to determine value, generate negative cash flows and do not have a history that guarantees their credibility. However, these types of companies often show a profile of growth and innovation that requires significant financial resources for their development. The problem of the scarcity of financing sources in this type of companies is known as the equity gap, which was described by the Macmillan Committee; This problem is compounded by the so-called matching gap, which occurs when, having surplus resources, the efficient connection between applicants and providers of funds is not achieved. Startups and large corporations face different business challenges, which nevertheless can unite them on the same path; In the case of startups, most have great financing needs and a rush to demonstrate monetization capacity, on the part of corporations, there are great innovation and growth challenges, for which, they are willing to invest resources and concentrate their efforts on innovation. Innovation may not initially be attractive as an investment factor, but over time it is accepted by the market. Some innovation-based ventures take a year, others up to five years to be accepted, and others will never succeed. In the case of Mexico, although angel investors generally participate in the creation of small companies that are in their early stages, it is also necessary that venture capital, as a source of stable financial resources, can also focus on financing young companies with high levels of risk, but with high content in technology and future growth expectations, providing them not only financial support, but also an active role in their evolution and control, facilitating their access to knowledge and a potentially useful network of contacts in the environment business.

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Milenio Click to view full video Replay video The weather forecast for this Thursday The wide circulation of a low pressure zone with high cyclonic potential will remain located off the coast of Veracruz, and in interaction with upper atmospheric instability will cause torrential rains in Puebla and Veracruz, and intense rains in Chiapas , Hidalgo, Oaxaca, Querétaro and San Luis Potosí. Likewise, heavy rainfall is forecast in Colima, Edomex, Guanajuato, Guerrero, Nuevo León, Tamaulipas and Tlaxcala, Mexico City, Coahuila, Morelos and Tabasco. La Jornada Weather forecast for this Wednesday For this Wednesday, the low pressure zone in the southwest of the Gulf of Mexico due to Tropical Wave Number 35, which will be located off the coast of Jalisco, and a low pressure channel that will extend over the Sierra Madre Occidental and the center of the national territory, in addition to instability at high levels of the atmosphere and the entry of humidity from both oceans, which will cause rains of different intensities in most of the country. La Jornada Teacher goes daily to Internet cafe to give classes Due to the coronavirus pandemic, covid-19, teachers and students had to return to online classes. It has undoubtedly been a challenge and much more for people who do not have the necessary tools to work or study. Problem Milenio NEXTE

In the case of entrepreneurs, they should not only focus on technology or the construction of new business models, they should also consider the needs of the market, in order to arrive with a true and attractive value proposition. Numerous studies have documented the strong relationship between venture capital and innovation, and it has been concluded that venture capital has a substantial impact on innovation and economic growth, only in the United States, there are some estimates that attribute between 4% and 6% of the growth to venture capital. One possible scheme that can incentivize private equity funds to invest in early-stage ventures is to provide tax breaks on capital gains earned at the end of investments. Because small businesses and investors often depend on personal income and resources to make investments. Corporations must make gradual improvements regardless of the industry or leadership exercised, and although changes may be slow, costly, and unappealing at first, over time they could drive innovation and become part of market needs. Startups tend to enter the market with new technologies and / or business models that make them more efficient than established companies, which stimulates competition and encourages mature companies to introduce changes, thereby accelerating the rate of diffusion of new technologies and innovation and in this way contribute to increasing the productivity of the economy. Editor's note: Juan Alberto González Piñón is the director of Spark UP and an academic at the Faculty of Business at the Universidad Panamericana. Follow him on LinkedIn . The opinions expressed in this column are solely those of the author. See more information about this and other topics in the Opinion channel

Source: MSN