We speak frequently in class about the role of government in fostering entrepreneurship. From easing regulations to making access to additional financing more readily available, government plays an pivotal role in cultivating entrepreneurship.
This article highlights a recent speech given by the head of the IMF. In the article, Christine Lagarde talks about the delicate role that governments must balance. She advocates the role of government in providing funding to certain technologies, while cautioning government to be aware enough to remove unnecessary barriers to competition and cut red tape. She advocates for providing more state funding to R&D and pushes the notion that it would boost GDP. The intersection of public and private financing in entrepreneurship and the competing policy agenda’s that stem from these divergent financing schemes provide for an interesting debate.