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March 26 - April 1, 2007

Federal Angel Credits Gaining Traction

US Congressmen Earl Pomeroy (D-ND) and Donald Manzullo (R-IL) have reintroduced their legislation that provides federal tax credits for qualified angel investments in American small businesses. The bill, the Access to Capital for Entrepreneurs (ACE) Act of 2007 (H.R. 578), would create a 25% tax credit for qualified individuals and partnerships that invest up to $250,000 in a qualified small business. Advocates of the plan argue that the bill will help stimulate angel investing and help create new sources of financing for start-ups and early-stage companies. The bill is gaining support among small business representatives and will likely be the subject of hearings in the coming year.

To learn more about H.R. 578, the Access to Capital for Entrepreneurs Act of 2007, visit the Library of Congress’ THOMAS website.

The Biggest Opportunity of All? The Next Four Billion

Over the past few years, numerous books and report have discussed the fortune at “the base of the pyramid (BOP).” This concept refers to the huge untapped market of four billion low-income consumers who reside in the developing world. A new report from the World Resources Institute, the World Bank, and the Inter-American Development Bank provides some hard numbers on the scale of this BOP market. Individually, low income consumers don’t command a lot of resources or attention. They average less than $3000 in annual income. But, as a whole, the entire BOP market represents $5 trillion in potential consumer spending. The new research provides an interesting look at various segments of the BOP market. While the markets tend to differ by country and region, they do share some characteristics. The markets tend to be rural, poorly served by existing firms, and possessing a large informal economy. But, armed with the data from this research and elsewhere, entrepreneurs and corporations should be able to develop strategies that bring more competitive and efficient products and services to these markets.

Access the March 2007 report, The Next 4 Billion: Market Size and Business Strategy at the Base of the Pyramid, by Allen L. Hammond, William J. Kramer, Robert S. Katz, Julia T. Tran, and Courtland Walker.

British Budget Report

Last Thursday, British Chancellor of the Exchequer Gordon Brown released his budget blueprint for the coming year. As in the US, there is quite a flurry of activity surrounding the budget release. The big news is Brown’s proposal to cut British tax rates on both personal and corporate income. The budget plan also contains a number of proposals designed to further stimulate innovation in the British economy. These include a new £100 million (around $196 million) initiative led by Britain’s Department of Trade and Industry. The Collaborative R&D Competition will sponsor investments in a host of leading technology sectors, such as advanced manufacturing, alternative energy, and lightweight materials.

Learn more about the United Kingdom’s 2007 Budget Report.

Learn more about the Collaborative R&D Competition.

Business Week Profiles Women Entrepreneurs

The Winter 2007 issue of Business Week’s Small Business edition contains an interesting set of profiles of women who have left successful corporate careers to pursue new entrepreneurial opportunities. The article notes a growing trend where women are leaving top management positions in corporate America as part of an effort to use their skills to run things their way. The article profiles 18 entrepreneurs such as Ann Buivid, CEO of Artemis Woman (a home spa products company) and Barbara Nelson, CEO of NeoScale Systems, a maker of storage security systems hardware and software. The profiles contain interesting insights about how these women entrepreneurs view the pros and cons of these career shifts. While the transition has not been easy, all of the women entrepreneurs are pleased with their choice and would be glad to do it again.

”This Time It’s Mine,” appears in the Winter 2007 Small Business edition of Business Week. It also appears on-line.

NFIB Business Plan Competition

The National Federation of Independent Businesses (NFIB) has announced its second annual “Plan for the Future” business plan competition. Developed in cooperation with BizFilings, the competition is open to all high school and college students. Students are expected to submit a business plan for an existing business, and the national winner will receive $7,500. Business plans can be submitted between March 15, 2007, and May 1, 2007. Last year’s winner, Massachusetts’ Jonathan Fischer, was honored for his plan for “Speed-Demon,” a firm that produces monitors that help parents track teen driving habits.

Learn more about the “Plan for the Future” business plan competition.

The National Dialogue on Entrepreneurship, an initiative of the Public Forum Institute made possible by a grant from the Kauffman Foundation of Kansas City. Through NDE-news, we bring you short summaries and analyses of various trends driving the innovation economy. Subscribe now to receive your weekly copy. Archived issues are available online. Links to the day's entrepreneurship stories from across the nation and around the world are posted each weekday on the NDE main page - bookmark it and stay informed about the latest entrepreneurship news.

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All stories © 2007 The Public Forum Institute
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