Startups and Bitcoins in Samoa
Samoa's small population, limited volume and subsidized, predominately agricultural character of the local economy, deficit of qualified personnel, absence of seed financing, legal and administrative barriers, high costs, explained by the geographical isolation of the country - all of those negative factors have imposed a severe limits on the size and growth perspectives of the local startup ecosystem. On a positive side, local startup founders can find some limited market opportunities in e-service (tourism) sector of mobile Internet.
In June 2017 the Central Bank of Samoa issued a statement warning against digital currency. It reads: "We wish to advise the general public to be very cautious and diligent in dealing with get rich quick schemes or digital currency investments. ... If you come across these difficult and complex financial concepts and investments, please contact the Central Bank of Samoa for more information." However, it looks like CBS itself has a very limited knowledge about cryptocurrencies. Meanwhile, trading digital money as well as organizing ICOs are still legal in Samoa.
Business Notes for Startups Founders:
political climate: indifferent;
economic climate: not friendly;
regions to focus: locally;
industries to focus: e-services (tourism);
major limitations: small economy of under $1 bln., tiny population of around 200000 inhabitants, heavy reliance on subsistent agriculture as well as on foreign aid and international remittances, geographical isolation, high costs of exported goods, low-income population (per-capita under $5000), high administrative and legal barriers, high taxes (personal income and corporate tax rates are both at 27%), fixed Internet rate is under 30%, shortage of qualified personnel, absence of seed and VC capitals;
stimulus: the growing tourist sector, which accounts for 25% of GDP, absence of competition;
opportunities: to build an e-business aimed at the International users of the mobile Internet in the services sector (tourism);
Cryptocurrencies and ICOs (outlook): legal (moderately negative).
The author: Svyatoslav (Svet) Sedov
Angel investor and founder of The First International Incubator for Silicon Valley Companies (FirstInternational.In) in the Bay Area, CA, USA.
Twitter: https://twitter.com/SvjatoslavSedof