The Swedish government announced a significant and surprising move to increase the creation of new ventures and to foster a greater degree of entrepreneurship. It was reported in yesterday’s Dagens Industri that the capital requirement for a new limited company – aktiebolag or AB – would be drastically cut from the ridiculous 100,000 SEK to 1 SEK. This change will put us in league with the UK and the US with respect to capital requirements instead of those bastions of entrepreneurship like Germany, France and Spain. It also rockets us past our Nordic neighbors, especially Denmark.
It is about time that Sweden actually embraces capitalism. Furthermore, during this time of financial crisis, it is recognition by the policymakers that it is the entrepreneur that creates value. It is the entrepreneur that creates new products and services. It is the entrepreneur that creates jobs. It is the entrepreneur that expands the tax base. It is the entrepreneurs that move society forward.