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What political and regulatory forces

will influence the market?


Objectives
• Examine political and regulatory forces in
the context of macroeconomic change
• Explore the impact of political and
regulatory forces on your success as an
entrepreneur
TM
The Opportunity Analysis Canvas

Industry
Condition

Entrepreneurial
Competition
Motivation

Entrepreneurial Industry Opportunity


Mindset Status Identification

Entrepreneurial Value
Behavior Curve
Macroeconomic
Change
Demographic
Psychographic
Technical
Societal
Political
Regulatory
Defining political and regulatory forces
“factors related to how government may
influence the economy or industries”
• Tax policy
• Fiscal policy
• Labor law
• Environmental law
• Trade tariffs
• Political stability
Example: Changing laws in crowdfunding
• Investment crowdfunding can breach
various securities laws
• Soliciting investments from the general
public is often illegal, unless the
opportunity has been filed with an
appropriate securities regulatory authority
– Securities and Exchange Commission in the U.S.
– Autorité des marchés financiers in France
– Financial Conduct Authority in the U.K.
2012 Jobs Act
• Modified U.S. securities laws to include
increasing the number of investors a private
firm may have from 500 to 2,000 people
• Lifted the “general solicitation” ban
preventing entrepreneurs from advertising
sales of equity in their small, private
companies to “accredited investors”
• Yet to take effect is allowing “equity
crowdfunding” from average individuals
What kinds of
companies would
event want to use
non-accredited
investor
crowdfunding?
Desperate ones.
Government as a customer
• Political and regulators factors may include:
– goods and services which the government wants
to provide or be provided (merit goods) or
– those that the government does not want to be
provided (demerit goods or merit bads).
• Furthermore, governments influence the
– health,
– education, and
– infrastructure of a nation.
Summary
• Understanding political and regulatory
forces provide insights
– How laws and policies impact business
– Where entrepreneurial opportunities may emerge
• Awareness of political and regulatory
forces allow entrepreneurs to participate in,
and perhaps influence, laws and policies
– Rather than falling victim to unexpected changes
that will impact their businesses

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