Asia-Pacific Economic Cooperation 2001/AMM/018 13" APEC Ministerial Meeting Agenda Item 9.3 APEC Best Practices Guidelines for Entrepreneurship and Start-up Companies (Chinese Taipei) 13" APEC Ministerial Meeting Shanghai, People’s Republic of China 17-18 October 2001APEC Best Practices Guidelines for ‘ Entrepreneurship and Start-up Companies (Chinese Taipei) Background The 21 member economies of APEC play a key role in the world economy. The 2.5 billion people in the APEC region contribute over 50% of the world's GDP, and the APEC region's annual trade amounts to US$6.6 trillion. To enhance APEC region's economic growth and prosperity, APEC must continue to develop global competitive advantages, based on constant innovation, daring entrepreneurship, and dynamic start-up companies. However, wide diversity in economic and social development exists among APEC’s 21 member economies. Therefore, establishing best practices guidelines for innovation, entrepreneurship, and start-up companies for a knowledge-based economy is the APEC's top priority. APEC members aspire to the following best practice guidelines for entrepreneurship and start-up companies: Start-up Companies and Venture Capital Afier the 1997 financial crisis in the Asia-Pacific region, APEC has concentrated efforts in promoting the development of start-up companies and venture capital in the knowledge-based economy. It not only brings capital and financial resources into economic development, but also lays a solid foundation for economic revitalization. © Member economies will establish and facilitate access to efficient capital markets, both public and private, to ensure that capital will be available for all stages of corporate growth : © Member economies will establish swift and efficient processes in government agencies with a view to facilitate the steady birth and growth of businesses. “@ Member economies will seek to attract, train, and retain management professionals to develop the veriture capital industry and to foster start-up companies. © Member economies will seek support from a network of professionals such as attorneys, accountants, ete. in a joint effort to promote venture capital and start-up companies. © Member economies will establish a favorable tax system to reduce business transaction costs in business formation, merger and acquisition, and dissolutionCorporate Governance Corporate governance is regarded as the healthy culture of businesses observed in the relationships between shareholders and the board of directors, between board directors and the management, between the management and employees, as well as between a firm and its customers. @ Member economies will enhance the legal and regulatory framework to emphasize disclosure, accountability and transparency and protect minority sharcholders. © Member economies will enhance the efficiency and effectiveness of the enforcement mechanism. © Member economies will enhance the mechanisms for market-based supervision, including the quality and timeliness of information disclosure, opportunities for hostile takeovers, growth and activism of institutional investors. © Member economies will enhance the training and education for directors, shareholders, regulators, professionals and investors with the aim to establish market integrity. Education In a knowledge-based economy, education is the determining factor in shaping the way we live, the values our societies wish to preserve and the levels of success each of our economies within APEC will strive for and maintain. A high-quality education and its effective application will become the most important facets of APEC's economic and social advancement, especially in a knowledge-based global economy. Member economies will seck to create a more responsive education system which fosters independent and creative thinking © Member economies will encourage the private sector to ‘bring innovative ideas and resources into the education system to improve access to, affordability, and quality of education. © Member economies will establish a good monitoring system to ensure quality education. Member economies will foster a favorable environment for e-learning. © Member economies will establish a sound pre-employment education and a formal on-sile training system to re-train and upgrade the knowledge of the workforce. © Member economies will intensify cooperation between universities and business entities to provide for students’ practical training. Member economies will enhance cross-cultural learning to reduce cultural barriers. © Member economies will encourage life-long learning and provide equal-opportunity