The entrepreneur's dilemma in regulated industries

(This is the transcript of a short video I recorded. Question: does the audio below add value? Do you prefer listening to it over reading, or is it superfluous? Please just leave a “Yes, please” or “Not necessary” in the comments or as a reply to the email).

The entrepreneur's dilemma in regulated industries

Imagine you had to sprint a marathon just to get to the starting line.

That is the situation entrepreneurs in regulated industries face.

For example, in banking or insurance, you need licenses that cost millions.

Or when you're in drug development, you need to spend ten to twelve years in clinical trials that cost hundreds of millions, if not billions, to get a new product to market.

And then you're competing with big pharma companies on supply chain and distribution, which is next to impossible if you're small and if you're new to the market.

And that's a very big problem because it leads to less competition.

And if you have less competition, the big companies make big profits while they're not innovating, and their products get worse and more expensive.

So we need to bring more startups and more entrepreneurs to the starting line.

What is the problem?

The problem is bad regulations. Bad regulations aren't what many people think they are, protecting consumers or things like that

They're actually typically made by big business and big government in liaison.

And these businesses want regulations. Why do they want regulations? Because they can afford the lawyers to comply with them, and smaller startups can't.

So they have less competition, which drives up their profits.

What is the solution for that?

The solution is to startup cities with novel legal systems.

I am based in Próspera in the country of Honduras, which has such a novel legal system.

I invite you to come to see it for yourself.

Prospera Healthtech Summit, September 23-25, 2022:

Prospera Edtech Summit, October 28-30, 2022

Prospera Fintech Summit, November 18-20, 2022