This morning`s news of WorldCom`s overnight application for bankruptcy protection came more as confirmation of a lingering misgiving than a surprising turn of events. It seems to be just another of those inevitabilities of life in the tech markets as we currently know it.
For start-ups, and indeed, for small business as a whole, there doesn`t seem to be much chance that talks around new investments can remain on the cards in the short-term.
Basheera Khan, UK correspondent, ITWeb
It`s triggered a reaction which, given the circumstances, is equally unavoidable; falling stock markets around the world, resulting in both investors and listed companies feeling the pinch.
And though it`s not all bad news - there are still companies, albeit in the minority, whose performance over the last 12 months has bucked the trend at every turn - it`s serious enough so that the vagaries of the market are being discussed at every imaginable forum, including boards and sites normally devoted to such pursuits as religion and astrology.
On second thought, perhaps that`s not as surprising as it seems.
Nevertheless, the current climate is such that for the foreseeable future, investments in anything other than core operations are almost definitely going to be curtailed. For start-ups, and indeed, for small business as a whole, there doesn`t seem to be much chance that talks around new investments can remain on the cards in the short-term.
In the UK at least, that holds true unless the investment is coming from government development agencies such as the Advantage Technology Fund, an initiative created by Advantage West Midlands, which is one of eight English Regional Development Agencies (RDAs) established by the UK government in 1999.
The RDAs target certain geographic areas around the UK, which have been designated by the EU for specific development of business investment. The Advantage Technology Fund is part financed by the European Community Regional Development Fund, and invests venture capital in early stage technology companies based in certain areas of the West Midlands.
One such company is CybaHous, a start-up whose simple yet effective products bring a new dimension to online chat and video conferencing. It is one of many companies now benefiting from the UK government`s request to RDAs to develop a strategic vision for each English region.
Government guidance (statutory and non-statutory) encouraged RDAs to formulate clear priorities for seeking to improve regional economic performance and to identify strategies for achieving them. The aim was to help to ensure that regional opportunities are fully exploited and that those responsible for economic decision-taking work together effectively, with common goals and accepted priorities for regional development.
In addition, the administrations in Scotland, Wales and Northern Ireland work with the DTI to support firms in their respective countries.
Despite the slowdown in technology investments, farseeing government projects to promote healthy, sustainable development in these areas could well be the way forward in regaining the public`s trust in technology investment.
Having heard its proponents express an interest in adopting EU-proven approaches to resolving economic issues in Africa, I certainly hope the African Union will take a leaf from this book of best practice.
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