I did an interview with Irene a couple of months ago about the government's idea about bailing out small businesses. I blogged about how throwing it around or letting so called "experts" doesn't make sense. Having said that, we received funding from a government backed fund which is managed by professionals. Singapore also has a variety of well manged government funds. If the government is going to put money into the market, choosing the right people to run the fund is essential. The "old way" just greases the political machine. The difficulty is choosing the people who choose the companies and make the investments. Transparency is probably a good place to start. Incentives are also important. The devil is in the details and it's quite difficult.
Business WeekFEBRUARY 7, 2003
By Irene M. Kunii
Don't Stifle Your Entrepreneurs, Japan
The bureaucrats and politicians who have presided over a decade of economic woe need to encourage startups, not stymie them
Koizumi seems to understand that Japan can only benefit from more entrepreneurial activity. Now he needs to realize that serving up fresh pork isn't the way to nurture the young business leaders the country so desperately needs.