How we finance our new and growing firms

Entrepreneurs are the engines that drive new companies and financing is the fuel that propels them. One form of that financing is called informal investing, sometimes called ''business angel activity'' (which we reserve for more professional and commercial investors). Informal investors use their own money and carry out their own due diligence to invest in the entrepreneurial opportunities of other entrepreneurs.

The importance of informal investing to New Zealand's new and growing firms

As part of the Global Entrepreneurship Monitor project, we asked 2,000 adult New Zealanders if they have made a personal investment in a new firm in the past three years as well as the magnitude of their supPort, the nature of the businesses they sponsored, and their relationship with
the recipient. We compared these data on informal investment to data on venture capital obtained from national sources. We are thus able to compare New Zealand's performance to cross-national measures. We also surveyed 20 key informants/experts on questions on financing.
In New Zealand, venture capital accounts for only 0.80/o of total investment in new and growing start-ups. Yet New Zealand is world-ranked in terms of informal investment. In New Zealand, informal investment activity is 3.5olo of the national GDP amount. New Zealand is also a world leader in the prevalence of informal investors (percentage in the adult population). Seventy-three percent of informal investors put their money into a relative's or a friend's business. Fifty-eight Percent of New Zealand's informal investors are female, quite the reverse of the world pattern.

When we compare Australia and New Zealandlo the rest of the GEM world, Australia ranks favourably with the GEM globat measures in terms of venture capital as a percentage of GDp, while New Zealand does poorly. Australia also does about 40olo better than New Zealand in terms
of the amount of VC invested in individual companies. But New Zealand is clearly higher in the measures of informal investment.

We conclude with implications for entrepreneurs, policy makers, educators, researchers, and journalists. In a nutshell, they should pay more attention to the critical role of the four F's - family friends, founders, and "foolish" investors - in start-up ventures. Informal investment is a critical component of New Zealand's entrepreneurial process and thus to its economic growth. Perhaps fifty superstars with extraordinary opportunities will receive financing from the New Zealand Venture Investment Fund to launch their businesses. Meanwhile, the vast majority of firms rely on the 4Fs - friends, family founders, and "foolish" lnvestors.

New governance, green planning and sustainability : Tasmania together and growing Victoria together

Bridgman and Davis(2000:91) have argued that ‘ideally government will have a well developed and widely distributed policy framework, setting out economic, social and environmental objectives’. This article compares and evaluates two such frameworks or plans, Tasmania Together and Growing Victoria Together, in terms of their potential to promote sustainability. It argues that they are very different exercises in new governance, aimed at reconnecting with community priorities and at redirecting macro-policy setting away from a preoccupation with economic priorities, respectively. Nevertheless, both plans have the capacity to ‘green’ state planning, in Tasmania in terms of more purposeful benchmarks, and in Victoria in terms of enhanced sustainability emphasis in the macro-policy setting. The article encounters tensions in its review of the plans between deliberation and planning, policy empowerment and policy progress, and policy institutionalisation and politicisation as means of achieving policy change. It finds that whilst Tasmania and Victoria are re-engaged states that are reinventing state policy, as yet they are failing to meet the governance challenges of sustainability.

Tasmania together and growing Victoria together : can state plans deliver environmental sustainability?

Sustainability has always been a contested term, environmental sustainability in particular. It presents challenges and opportunities for policy making at all levels. This paper suggests that state plans have a key role to play in the pursuit of sustainability. It argues that, in theory, sustainability requires well integrated, interactive, informed and informing, as well as institutionalised policy processes. It reviews state plans in Tasmania and Victoria to analyse their capacity for delivering sustainability. Tasmania Together and Crowing Victoria Together are very different plans, so very different conclusions are drawn here, however we find that both of them lack the explicit political and policy commitment to sustainability that is required to turn rhetoric into state planning practice.

Staying healthy : the case of cotton and cane growers in Australia

Farmers and fishers have always been exposed to the vagaries of climate and global economic forces. However, in recent years there has been an accumulation of factors which are having a particularly severe impact upon rural Australia. The global financial crisis has negatively affected commodity prices and the viability of some rural communities is under threat. There is evidence to suggest that climate change is already impacting adversely on many primary producers and their ability to farm using traditional methods. Furthermore, many parts of rural Australia are still experiencing the effects of long-term drought and associated problems. Together, these circumstances can rightly be conceived of as 'difficult times'. Key areas recently identified in a decline in mental health among farmers include: increasing isolation, ongoing drought, increased government regulations, and a widening of the schism between urban and rural Australians. While there is a body of literature on behaviour around illness in the context of the stress of ' difficult times', there is little on preventative behaviours in these circumstances. This chapter reports preliminary findings from an exploratory research projects that investigates the process by which farmers and fishers achieve and maintain good physical and mental health in the context of 'difficult times'. The research takes a multiple case study approach, with five Australian sites, each with a different industry base, representing communities undergoing 'difficult times'. This chapter focuses on two of the sites and data obtained from interviews with farmers in the cotton and sugar industries. It discusses the behavioural choices that they make to maintain good physical health and mental wellbeing. These include choices about nutrition, physical activity, social connections such as participation in community, social or farm-related groups, opportunities for relaxation and regular medical check-ups.

Social stigma in diabetes : a framework to understand a growing problem for an increasing epidemic

A comprehensive understanding of the social and psychological impact of diabetes mellitus is important for informing policy and practice. One potentially significant, yet under-researched, issue is the social stigma surrounding diabetes. This narrative review draws on literature about health-related stigma in diabetes and other chronic conditions in order to develop a framework for understanding diabetes-related stigma. Our review of the literature found that people who do not have diabetes assume that diabetes is not a stigmatized condition. In contrast, people with diabetes report that stigma is a significant concern to them, experienced across many life domains, e.g., in the workplace, in relationships. The experience of diabetes-related stigma has a significant negative impact on many aspects of psychological well-being and may also result in sub-optimal clinical outcomes for people with diabetes. We propose a framework that highlights the causes (attitudes of blame, feelings of fear and disgust, and the felt need to enforce social norms and avoid disease), experiences (being judged, rejected, and discriminated against), and consequences (e.g., distress, poorer psychological well-being, and sub-optimal self-care) of diabetes-related stigma and also identifies potential mitigating strategies to reduce diabetes-related stigma and/or enhance coping and resilience amongst people with diabetes. The systematic investigation of the experiences, causes, and consequences of diabetes-related stigma is an urgent research priority.