My flatmate Bryan Gibson (who is a PhD candidate at the London School of Economics) and I worked on a proposal for entrepreneur loans.
From student to entrepreneur
Similar to the student loan systems that most countries already have, an entrepreneur loan should provide capital to help a start-up to kick off, especially in regions more neglected by established venture capitalists.
Student loans have a certain threshold until which the money stays interest free, after which interest rates go back up to the market standard (or the ECB rate).
Building on the comments below, the enterpreneur loan could work as an extension of the student loan system to enable people to start their own company right out of school.
Incentives for growth
With the entrepreneur loan this can be a similar time span of 3 years, but the challenge is to create incentives for start-ups to employ additional staff and grow.
One way of achieving this would be to give a bonus for each new employee hired (eg. The interest rate drops by five points for every additional employee).
Another incentive mentioned by Meena Kadri and Tim Hood would be setting a certain profitability threshold before repayment starts.
Who is behind the system?
Similar to student loans this could be a public-private partnership. The public hand could lower the risks for private investors to join in. The enterpreneur loan is kick off money, after which the start-up could become a business customer for the private partner.
Potentially the revenue of the loans used to save the banks which were too big to fail in 2008 could be channeled into these start-ups as a political gesture of the big helping the small.
Back to school
Because starting a company is a hard education of its own right, the system could include uni-credit (ECTS) points, to help students stay in their programs, or other entrepreneurs to start a degree. This would benefit both the start-ups with easy access to education and academic innovation as well as the universities, which get hands on business experience and know-how onto their campus.
191 comments
Join the conversation:
CommentBrian Hillson Christopher
Jimmy Faltersack
Dr. Everett Cooper
Karin Sabine
Humble Goodnews
Dr. Everett Cooper
moore james
moore james
Dr. Everett Cooper
Mills Dachin
James Carter
jayden martin
Brian Hillson Christopher
Rod Alfred
Rod Alfred
Andy Gokay
jayden martin
Tammy Robert
Tammy Robert
Tammy Robert
Davis Carlos
Alberto Stephanie
Pendelis Wealth
Raymond Johnson
Wesley Vasquez
Steph Ronny
jayden martin
James Carter
James Carter
jayden martin
James Carter
James Carter
bradley blake
SagnWook Zack
Mills Dachin
James Carter
Steve Lugard
Pendelis Wealth
Pendelis Wealth
Pendelis Wealth
Bradley Garrett
James Carter
Oduck Ayamud
Oduck Ayamud
James Carter
jayden martin
anna lucas
anna lucas
Tammy Robert
Tammy Robert
Joseph Tetro
Joseph Tetro
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Abigail Mills
Brian Hillson Christopher
Brian Hillson Christopher
Joseph Tetro
Joseph Tetro
Jennifer Loris
Harriet Sebastian
Harriet Sebastian
jayden martin
Donald Crush
Donald Crush
Mrs.Juliet Quin
Mrs.Juliet Quin
Mrs.Juliet Quin
Kim Kim
Bentex Group Funding
Bentex Group Funding
jayden martin
Bentex Group Funding
Bentex Group Funding
Bentex Group Funding
Reekado Rosey
jayden martin
Nancy White
Mrs.Aisha Mohamed
Mrs.Aisha Mohamed
Mrs.Aisha Mohamed
Mr. Landon Luis
Mr. Landon Luis
Susan Benson
Opportunity Financial LLC
Chester Wyne
Matej Smolej
Collins Guzman Fundings
Richie Paddyy
Jack El Bolden
Avit Investment
Larry Ellison
Dr. Chris Gethard
Noel Prince
Noel Prince
julia jeehee
julia jeehee
Susan Benson
Avit Investment
Katelyn Garrett
Ayanda Lishwa
profyusufkaddu spells
profyusufkaddu spells
profyusufkaddu spells
Dr.Steve Farrugia Capital
Larry Ellison
Abab Abab
Dr.Steve Farrugia Capital
Muna Akram
Saara Kemi
Saara Kemi
Dr.Steve Farrugia Capital
Innocent Gusenga
Innocent Gusenga
Connie morgan
Larry Ellison
Abab Abab
Harry Carlos
Harry Carlos
Harry Carlos
Stacy Betty
Stacy Betty
Stacy Betty
Mathew Cox
Jackson Mack
Dr. John Marshall
Connie morgan
don peter
jerry cole
Russell Logan
Dr. Bentley Grants
Loan Lender
Dr. Nolan Greyson
Blessing Firm
Blessing Firm
Vasquez Reynolds
Rodney Sccheuer
Dr Desmond Berling
santos drea
santos drea
Haiyan Zhang
OpenIDEO
Paul Reader
OpenIDEO
Paul Reader
Amy Bonsall
Stefan Ritter
OpenIDEO
DeletedUser
Paul Reader
James McBennett
Ashley Jablow
jyotirmaya mahapatra
DeletedUser
Stefan Ritter
DeletedUser
Meena Kadri
Amy Bonsall
Stefan Ritter
Amy Bonsall
DeletedUser
jyotirmaya mahapatra
DeletedUser
DeletedUser
DeletedUser
DeletedUser