Governments invest far too much energy in who or what company is paying either too little or too much tax and should instead focus on the economic health of their countries, according to one of Europe’s most influential entrepreneurs.
Julie Meyer, the woman who founded the First Tuesday network which was subsequently sold for $50 million in cash, believes the never ending debate about tax - both at a corporate and individual level - does not address the tax burden which she says is holding back small businesses and entrepreneurs.
Her personal belief is that all tax rates, both personal and corporate levels, should never be more than 15 per cent.
She says current tax loopholes in various European countries make a mockery of most tax laws.
“Big businesses can negotiate tax deals but small businesses and entrepreneurs who are also creating jobs and growing the economy are not able to - big corporates can move profits offshore but small businesses don’t have that choice.”
Ms Meyer believes that a country’s tax system should reward entrepreneurs and risk takers.
“They are the lifeblood of the economy” she says and in her opinion are the people who really have the potential to grow the economy.
As the founder of London-based investment company, Ariadne Capital, Ms Meyer firmly believes entrepreneurs can change the world as demonstrated by her decision to back Skype back in its early days following a meeting with co-founder Niklas Zennström.
Speaking in Belfast yesterday at the International Business Women’s Conference (IBWC 2014) Ms Meyer shared her vision of how the business world is divided into David and Goliaths.
“Digital Davids” as she terms them are the entrepreneurs while the Goliaths are large existing companies and as Skype demonstrated sometimes large established companies such as BT and other international telecoms groups do not realise until it is too late just how significant a threat a Digital David can present.
Traditionally David and Goliath were always engaged in a battle but Ms Meyer told her Belfast audience that what the Digital Davids and the Goliaths need to do if they both want to succeed in 2014 is “dance”.
“Goliaths need to be open to digital enablers and in return digital entrepreneurs need to find the right platform. If the next Digital David is based in Belfast doing something great then they need to be discovered - there is no discount associated with being based in Belfast but that tech start up needs to become visible.
“The world is driven by networks today. If Digital Davids and Goliaths come together they can create high growth businesses,” she said.
Last year Ms Meyer launched her very own global network - Entrepreneur Country Global (EC Global) - which aims to introduce digital starts from every corner of the world to large new corporate partners.
EC Global claims to be a community that encompasses 464 million people across 13 regions with more than $3.73 trillion in GDP.
She says discovery of the next big thing should not be “post-code dependent” but if her enthusiastic audience in Belfast was anything to go by yesterday more than a few would be very happy if the first line of the address started with a BT...
