Corruption Risks / Common Malpractices in Different Stages of Start-up
![image_seeking_funds](/sme/cache/img/beedfc50123bbfb568042ffeba1fc0de.png)
Typical sources of funding for start-ups
- Government grants and subsidies programme
- Incubation or acceleration programmes
- Private venture capitals or angels
- Bank loans
Corruption Prone Areas
- Applicants offers advantages to handling staff of applications, assessment panel of funding programmes or representatives of potential investors for favouritism in the application process
- Start-up proprietors fabricate transactions, statistics or submitting bogus documents for funding applications
![image_start_up](/sme/cache/img/27ffa79a2d1ccfed3dc7dcb8118c4bdb.png)
To-dos for setting up a company
- Business and company registration
- Patent, copyright or trademark registration
- Licence or permit application
- Opening business bank account
Corruption Prone Areas
- Applicants offer advantages to the handling or approving staff for the latter’s speeding up the application process or turning a blind eye to insufficient documents submitted
- Start-up proprietors or representatives offer gifts to public officials while having dealing with the government department or public organisation
- Applicants submit bogus supporting documents for applications
![image_getting_product](/sme/cache/img/a038bdd2c0f04faec318700a118cffae.png)
Steps to get your product ready
- Selection of suppliers or manufacturers
- Negotiation with service providers
- Quality control
Corruption Prone Areas
- Start-up partner appoints companies with financial or personal interests as suppliers or contractors without the consent of other partners
- Company partner or staff responsible for purchasing select suppliers or contractors who offered personal advantages
- Colluded partners or staff leak proprietary information to competitors
- Goods receivers cover up non-deliveries or accepting substandard goods
![image_reach_out](/sme/cache/img/495abc00dd3c32486f661a19ca684f52.png)
Types of customer
- Corporate/Individual client
- Local/Overseas client
Corruption Prone Areas
- Start-up proprietors offer advantages to representatives of corporate clients to boost sales or secure orders
- Individual partner divulges clients’ information to third party for personal gain
- Non-compliance with laws and regulations of other jurisdiction when dealing with overseas buyers or officials