T Nation

Government Supporting Entrepreneurship

So I’m sitting here doing my PreCalc homework and I’m thinking that I really don’t give a shit about any of this and that none of it is relevant to what I want to do in the future.

I’m going to spend 2 more years in high school doing busy work, then go off to college, and only then can I begin saving up money to do what I want, which is to start a business, while paying bills.

I have an idea:
High schoolers should be able to apply for a government loan. This is a crude idea, but let’s say that a high schooler can take a test proving their IQ above say 140 and then pass a difficult series of tests on business and entrepreneurship.

They must then write up a business plan of what they intend to do and how they intend to make a profit.

The government would then loan the student say, $100k. The teenager that knows more about the business world than most adults may then put their business plan into action.

Four years later, the loaner must then repay the government at a high interest rate, say, 20%, taking inflation into account.
So, say the current dollar is worth only 90% of what it was when the loan was made and the loaner must repay $100k at 20% interest, then they must repay $132,000.

So, the young adult avoided wasting years of their lives and got a head start on their enterprise. They must still attend school, as the law dictates, but they now have financial aid for a business.

Of coarse, a contract would be signed and the teen would meet with a government representative stationed near them as the amounts of money loaned out will not be small.

Now, why would the government want to do this?
As you know, we are in a massive debt and inflation is rampant. In four years, the government has just made a 20% profit over their original loan with inflation taken out of the equation.

Another business is blooming, helping the economy.

So, I have to pay more taxes so some snot face kid’s business can eat shit and disappear in the first year while he parties on a 100 grand?

fuck that.

The next part is just me ranting:
As we remain in debt and inflation continues, most narcotics are still illegal. The legalization of certain illicit and very taxable substances would allow the government to receive massive amount of money from taxes.

This would also open avenues for many new businesses, which is good for the economy; it would get money moving.

Prisons would be freed of many inmates that were arrested for drug charges alone. This would allow for taxes to be slightly lowered, which would again make money change hands more frequently.

Why this has not been done yet is a mystery to me.

Not at all. That’s a huge risk. Most businesses fail. And having an high IQ and booksmarts is by no means a guarantee of business sense and sound judgment. I predict the government would never see most of that money again.

[quote]MarvelGirl wrote:
So, I have to pay more taxes so some snot face kid’s business can eat shit and disappear in the first year while he parties on a 100 grand?

fuck that.[/quote]

He’s not going to be partying it away under contract and monitoring.
This would allow taxes to be lowered overall.

[quote]jsbrook wrote:
Not at all. That’s a huge risk. Most businesses fail. And having an high IQ and booksmarts is by no means a guarantee of business sense and sound judgment. I predict the government would never see most of that money again.[/quote]

My point is the opposite of this. Book smarts are not an indicator of anything. Business and entrepreneurship exams would need to be taken and a detailed write up of the business plan would need to be evaluated.

This wouldn’t lower taxes. Most businesses fail, so what happens when the business fails?

[quote]MarvelGirl wrote:
This wouldn’t lower taxes. Most businesses fail, so what happens when the business fails?[/quote]

The kid is in debt, but they have completed at least high school and must still pay back the government.

So, they’re just in debt $100,000?!?

I’m sorry, that’s incredibly retarded.

[quote]MarvelGirl wrote:
So, they’re just in debt $100,000?!?

I’m sorry, that’s incredibly retarded.[/quote]

How exactly do student loans work?

Who borrows 100,000 for student loans at 18? You’re actually proposing that the government give 100 grand to children who “prove” that they are smart and have a business plan.

None of these kids are going to pay that money back if they fail. They have only a basic high school education which limits their earning potential. Every damn one of them will file bankruptcy and that 100 grand goes down the toilet leaving them and us with NOTHING.

This plan sets the borrower up for failure. It won’t help the economy because it’ll just create more people who can’t pay their bills and end up living off the state. It’s ridiculous.

Also, fuck them. It’s good for a person’s character to actually have to work hard and EARN success instead of just having a check handed to them. If they can’t manage to raise start up capital, then they don’t have what it takes to be an entrepreneur anyways.

[quote]Artem wrote:
jsbrook wrote:
Not at all. That’s a huge risk. Most businesses fail. And having an high IQ and booksmarts is by no means a guarantee of business sense and sound judgment. I predict the government would never see most of that money again.

My point is the opposite of this. Book smarts are not an indicator of anything. Business and entrepreneurship exams would need to be taken and a detailed write up of the business plan would need to be evaluated.
[/quote]

You can’t design an exam that determines whether someone will be a successful entrepreneur.

I’ll bow out gracefully. MarvelGirl’s got it all covered.

I see the flaws and I’m not saying that this would happen, but I’m throwing the idea out there. I think it could become something valuable if revised.

Right now, the other major flaw I see is that there would be many government-controlled businesses because the government would be trying to ensure that the businesses succeed.

if they didn’t get involved, the children would be competing against each other. If one kids product, or service, or whatever beats out 3 other kids, the government just lost $270,000.

[quote]Artem wrote:
The next part is just me ranting:
As we remain in debt and inflation continues, most narcotics are still illegal. The legalization of certain illicit and very taxable substances would allow the government to receive massive amount of money from taxes.

This would also open avenues for many new businesses, which is good for the economy; it would get money moving.

Prisons would be freed of many inmates that were arrested for drug charges alone. This would allow for taxes to be slightly lowered, which would again make money change hands more frequently.

Why this has not been done yet is a mystery to me.[/quote]

Bringing this idea to the discussion table as well…

[quote]Artem wrote:
The next part is just me ranting:
As we remain in debt and inflation continues, most narcotics are still illegal. The legalization of certain illicit and very taxable substances would allow the government to receive massive amount of money from taxes.

This would also open avenues for many new businesses, which is good for the economy; it would get money moving.

Prisons would be freed of many inmates that were arrested for drug charges alone. This would allow for taxes to be slightly lowered, which would again make money change hands more frequently.

Why this has not been done yet is a mystery to me.[/quote]

Because law enforcement and private prisons are a multi-billion industry?

And yes, there are people that would gladly make money by throwing your ass in a cage and make you do slave labor.

No bank worth their salt is going to loan a kid money for an idea and a high IQ. You have to have collateral to put up against the loan.

Venture capitalists will - but they have to really believe in your idea, and you get raped in the process.

You are aware that 85% of all businesses fail, right?

I am one of the fortunate, as I own two successful businesses.

I was 35 when I had my first business. If I would have been 18, the business would have withered and died, and would never had the chance to start the second one.

There is another approach that you may be over looking. One that is a dying breed: apprenticeships.

Find someone who is doing exactly what you want to do and learn from him/her. Yo make shit for money, but you are not wasting away in school doing crap to keep you busy.

It costs the government nothing, and you will get paid to learn the ropes in a business similar to the one you want to own.

This country needs small business. It’s what fuels the economy. But the government does not need to take the risk of 85% of 18 year-olds failing in business. They already have the SBA.

[quote]rainjack wrote:
No bank worth their salt is going to loan a kid money for an idea and a high IQ. You have to have collateral to put up against the loan.

Venture capitalists will - but they have to really believe in your idea, and you get raped in the process.
[/quote]

The first thing they’d do upon investing a significant amount is put a professional in the position of responsibility while pushing the kid to a supporting “idea” or R&D role.

It’s one thing taking a risk on someone with no prior management experience. Who the fuck would want to put significant cash into a kid with neither work experience nor life experience?

Kid, unless you have developed some truly brilliant, viable, and salable (in IP terms, not in the “if I had massive sums of money and a distribution system lined up I could sell this thing” kind of way) product you should get back to you pre-calc.

Quit relying on the government for everything. Geeeeeeeez.

Not to mention, as MG is busy pointing out, this idea is just retarded as retarded gets. And then some.

[quote]Artem wrote:
The teenager that knows more about the business world than most adults may then put their business plan into action.

[/quote]

What. The. Hell.

Really. A TEENAGER with NO life experience knows more than MOST adults whom have had experience in the real world for the MAJORITY of their lives?

What the hell are you on?