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Thanks for your comment. In countries with lower cost of labour, reducing or removing taxes on software companies will lead to folks starting outsourcing and s

by ankeshk 16y ago

Thanks for your comment. In countries with lower cost of labour, reducing or removing taxes on software companies will lead to folks starting outsourcing and service related companies. Not entrepreneurial product based startups. India is a prime example of this. Compared to the number of software developers in the country, the number of startups that pop up from India is very very low. So from Chile's point of view, I think its a great pilot plan.

zaidf 16y ago
...will lead to folks starting outsourcing and service related companies. Not entrepreneurial product based startups. IMO that is just another type of startup.
- ecaradec 16y ago
  But this king of companies tend to live on thin margin and exploit local population. This may not be in the best interest of Chile to bring this kind of population.
  - zaidf 16y ago
    I disagree. I don't know very many Indian programmers who consider themselves "exploited" by firms such as Infosys, Wipro etc. In fact, quite the opposite. Most Indian programmers that are worth a dime are sitting on multiple job offers at any given time.
fierarul 16y ago
By definition startups have a chance of failing. Betting Chile's software strategy on 25 startups is a risky business. I don't see why lower taxes will reduce entrepreneurship there or introduce only outsourcing -- won't the locals use this chance to create their own startups ? There are many things to discuss here but I assume some countries either culturally or financially encourage enterprises. If Chile doesn't have the right legal, tax and socio-educational framework then startups will never migrate there. There are just too many aspects to look at but I do believe that a contest with some $40K prizes can't beat lowering taxes.
- jbooth 16y ago
  Eh, lowering taxes puts money in the pocket of everybody who makes any money, and you're primarily taking less money from already existing income. Chile's looking to create new high tech startups. Entirely different problems.

by ankeshk 16y ago

zaidf 16y ago

...will lead to folks starting outsourcing and service related companies. Not entrepreneurial product based startups. IMO that is just another type of startup.

ecaradec 16y ago
But this king of companies tend to live on thin margin and exploit local population. This may not be in the best interest of Chile to bring this kind of population.
- zaidf 16y ago
  I disagree. I don't know very many Indian programmers who consider themselves "exploited" by firms such as Infosys, Wipro etc. In fact, quite the opposite. Most Indian programmers that are worth a dime are sitting on multiple job offers at any given time.

fierarul 16y ago

By definition startups have a chance of failing. Betting Chile's software strategy on 25 startups is a risky business. I don't see why lower taxes will reduce entrepreneurship there or introduce only outsourcing -- won't the locals use this chance to create their own startups ? There are many things to discuss here but I assume some countries either culturally or financially encourage enterprises. If Chile doesn't have the right legal, tax and socio-educational framework then startups will never migrate there. There are just too many aspects to look at but I do believe that a contest with some $40K prizes can't beat lowering taxes.

jbooth 16y ago
Eh, lowering taxes puts money in the pocket of everybody who makes any money, and you're primarily taking less money from already existing income. Chile's looking to create new high tech startups. Entirely different problems.