Entrepreneurship thrives on bold ideas, relentless
determination, and the willingness to take risks. But no matter how
innovative the concept or how committed the founder, even the most
promising business can stumble without the right structure in
place.
For this year's World Entrepreneurs' Day, we are
reflecting on some of the most common structuring mistakes
entrepreneurs make and the lessons that can be learned from
them.
1. CHOOSING THE RIGHT JURISDICTION
One of the most frequent pitfalls is choosing a jurisdiction
without thinking through its long-term implications.
Imagine a technology start-up launching in the founder's
home country because it seemed the quickest and simplest route. In
the early days, it works fine but, fast forward five years, and the
company's plans to attract overseas investment are complicated
by rigid local corporate laws and a tax regime that makes
international operations expensive.
