If the government or the market, or a mixture of both, can provide effective and efficient incentives for entrepreneurship and new venture financing is an age old question. Public assistance efforts are controversial and in most cases they tend to fail. In the United States, the debate about the role of the state in these areas can be traced back to at least the Great Depression and the period immediately after the Second World War, when the issue was of particular interest. Politicians believe that the existing financial institutions could not provide the necessary due diligence, no pool of risk capital that was needed to stimulate business activity. In addition, calls for additional incentives such as tax-related incentives. The mechanisms that have been used to raise questions about the benefits, costs, and unintended consequences. Can, and should, influence the state of entrepreneurship and venture capital? What are the limits of government intervention? "Hide
by Josh Lerner, Tom Nicholas 13 pages. Publication Date: October 28, 2012. Prod. #: 813096-PDF-ENG
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