1. What political and regulatory forces will influence the market?

2. 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

3. Macroeconomic Change Demographic Psychographic Technical Societal Political Regulatory Entrepreneurial Motivation Entrepreneurial Behavior Industry Condition Industry Status Opportunity Identification Value Curve Competition The Opportunity Analysis Canvas TM Entrepreneurial Mindset

4. 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

5. 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.

6. 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

8. What kinds of companies would event want to use non-accredited investor crowdfunding? Desperate ones.

9. 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.

11. 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