What Do Public Officials Know About Being Entrepreneurs?

The State's role is not to teach entrepreneurs how to do things, but to remove obstacles so that they can create wealth.

Thursday, April 24, 2014

Editorial

It is remarkable how the role of the State has been misrepresented, especially in some countries in the region. The primary functions of governments are being carried out at half measures or not being done at all: the insecurity of people and goods is increasing, justice is neither swift nor effective, health and education services are only for those who can afford them, and public infrastructure is a far cry from the taxes that correspond to paying for it.

Despite this, there is an ever increasing amount of institutions and officials / consultants dedicated to teaching -theoretically- how to create businesses, how to manage them, how to do business, how to export, etc, etc, etc..

The question is obvious: if those officials / consultants really know about what they are trying to teach, why are they not employers themselves?
And the answer is clear: because they have no entrepreneurial spirit, because their greatest ambition is to safely collect their salary, because they dont want to spend nights awake because of falling sales, and especially, because they do not know how to manage - in practice- a company.

In Central America there are tens of thousands of officials / consultants who on a daily basis use words such as entrepreneurship, support for SMEs and MSMEs, export promotion, etc.. And there are also many hundreds of millions of dollars wasted on hundreds of programs to support the companies who pay their salaries; programs that -with few exceptions- never surrender their accounts or conduct real reviews of their success or failure.

It would be much more productive if those job positions, along with their salaries, were given over to the areas of law enforcement, judicial bodies , health care or public education, or simply monitoring and traffic control for trucks carrying the actual production of the country, so that they could arrive promptly to their destinations, rather than the making average speed of 20 kilometers per hour as seen on the roads of Central America.

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