We’re going to touch on two topics today.
And in the case of Greece, the lesson is that government intervention and bureaucracy is an enemy of entrepreneurship.
Probably the most amazing – and weird – example is that the Greek government wanted stool samples from entrepreneurs seeking to set up an online company (and, just to be clear, I’m not talking about furniture).
We now have another example, but it’s seems more tragic than bizarre. Here are some really sad passages from a column in the New York Times by a woman who tried set up a business in Greece.
I managed to master the perfect macaron. I was ready to sell them. I invested every penny I earned in high-quality photographs, a superbly designed website and tasteful packaging. “Le macaron grec” was born and the little olive green boxes of treats I was selling were, I thought, my chance to regain control of my life. “Le macaron grec” became a huge success, as I was in demand to cater parties and weddings. …I felt like I was on my way.
Until the visible foot of government interfered with the invisible hand of the market.
…as happens so often in Greece, the bureaucrats had other plans. In a country where you are viewed favorably when you spend money but are considered a criminal when you make it, starting a business is a nightmare. The demands are outrageous, and include a requirement that the business pay taxes in advance equal to 50 percent of estimated profit in the first two years. And the taxes are collected even if the business suffers a loss. I needed only 20 square meters for my baking business, but inspectors told me they could not give me permission for less than 150 square meters. I was obliged to have a separate toilet for customers even though I would not have any customers visit. The fire department wanted a security exit in the same place where the municipality demanded a wall be built.
NEW TIME Today, at 9:30 AM PT: Get the Market Movements in Advance: William's Edge Webinar for January 30th, 2014 | John Ransom
NEW TIME Today, at 9:30 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for January 26th, 2014 | John Ransom