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Super- Entrepreneurs
13/07/2015
Books
Hungary badly needs consistent economic growth and jobs. A new paper from the Danube Institute suggests a way that could help to achieve both.

Hungary badly needs consistent economic growth and jobs, or it will continue to lose many of its brightest and most enterprising young people. A new paper from the Danube Institute suggests a way that could help to achieve both.

SuperEntrepreneurs are defined as self-made men and women whose names are listed in Forbes magazine, and who have made at least one billion dollars.

First published by the London-based Centre for Policy Studies, SuperEntrepeneurs...and how your country can get them finds that this group of risk-taking innovators have created half the largest new firms world-wide since World War Two – a remarkable economic fact which policy-makers should take account of.

The publication now appears in a special Hungarian edition containing English and Hungarian text.

It notes that the proportion of superentrepreneurs varies significantly across countries. Hong Kong has the most, followed by the US, Switzerland and Singapore. The US has four times as many Superentrepreneurs as Europe.

The authors of the publication, Tino Sanandaji and Nima Sanandaji point to a strong correlation between high rates of  entrepreneurship and low tax rates. Equally, a low regulatory burden and high rates of philanthropy correlate strongly with high rates of superentrepreneurship, they point out.

The publication argues that high rates of self-employment and innovative entrepreneurship are both important for an economy, but that they should not be confused. Policy-makers need to grasp that while many successful entrepreneurs started small companies, not all self- employed people are entrepreneurs in the sense of developing new products or services through innovation.

In a preface to the Hungarian edition, Krisztián Orbán, a Budapest-based entrepreneur and founder of an investment company, writes that with the aim of creating jobs and prosperity, Hungarian governments have created various subsidy schemes to encourage entrepreneurs. Not all of the money was wasted – but none of them has  produced a tide or even a trickle of local companies with a meaningful impact on employment levels.

He argues that a possible solution would be to set up Special Innovation Zones (SIZs) where the government could ensure conditions conducive to innovative entrepreneurs especially in the areas of regulation, tax and possibly education – although to join and stay within a SIZ, companies would need to be export-based.

Have a look at the pictures of the book launch held in Budapest on the 13th July 2015 by clicking on the pictures below. Commenting on the paper’s findings were one of Hungary’s most successful and  best known entrepreneurs, Gábor Bojár, the founder of Graphisoft, and Márton  Aichelburg, the founder of Civic Enterprises.

If you want to buy the book please contact Ibolya Dán: violet.dan@danubeinstitute.hu

Tino Sanandaji and Nima Sanandaji: Superentrepreneurs ... and how your country can get them, Budapest, Danube Institute Papers, 2015, 2.000 HUF

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