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From the original opinion article in Postimees - 60s were the time of revolution. Not only in the music but in art, fashion, politics, technology and lifestyles as well. It was the time of turbulent change. And in any case it is the time fascinating to look back to, especially for those of us who hadn't even taken their first breath yet.

The young were behind those changes. Young and restless souls. As Robert Kennedy said, this world needed the quality of youth. "Not the youth as a period in time, but youth as a way of thought - willpower, the quality of imagination, boldness dominating over cowardice and desire for adventures over simply making it through," JFK's younger brother said these golden words.

Today's Estonia needs all that. We can do a lot, the old dinosaurs we are (the author is 34 years "old"), but the young are the ones to make Estonia anew. Praise the young and they will flourish - an Irish proverb. Involve the young and the Republic shall flourish, could be an Estonian proverb.

Any business or project that is not initiated by the young or where the young are not involved in as whole hearted owners from the start has the risk of not growing. At least they will not lead our society forward nor contribute in what president Meri called Estonian vigour. I'm not talking about mere daringness. The balance between life experience, knowledge of the world and youthful enthusiasm is important. In youth organisations, e. g. JCI which's Tallinn department I had the honour of managing couple of years ago, it is called mentoring - mutually supportive trust relationship between the more experienced and young newcomers. In Singapore by the way, even the government has a mentor not to mention the new generation of society leaders. I believe that we as well would benefit from using this modern version of master-apprentice relationship!

I write this article because I'm worried. Worried, because our society and our young are moving to different directions. They are like two trains on a branch line, moving apart. The further out of the station they go, the smaller is the chance of them meeting again. Like this year's snow - the larger the pile the longer it melts. Though, in the nature the coming of spring is a given, in the society not so much!

I will tell you a story about Marili.
Marili is an industrious economy student who studied in Netherlands, came to the Development Fund for internship, and with whom I talked about life one day. According to her for a young person Estonia is already complete - you step off the school conveyer, into a country where everything seems to be in place. But at the same time it's too boring and uninspiring, and it's hard to find one's place.

Marili says that Estonia is extremely hostile to new ideas. Everyone's sole purpose, amplified by media, seems to be beating others - mere complaining and making words. Everyone looks back all the time. This is like a wall for a young person, they hesitate with their decisions. And this is where the boldness comes in. Large undertakings of the 90s jumped in the water and learned to swim. Today many lack courage and many don't care. People see themselves outside Estonia. Sportsmen go study in the USA in search of better trainers. The curious go to travel in Australia, etc. This in itself is a good thing. Most young people want to and they should spend one longer period of their lives outside.

"The problem starts when none of the older generations really waits us back," says Marili. It feels like we can't find and don't have a place. And at the same time, among the young, material interests dominate over the desire to be a full fledged member of the society. Everyone asks, what does the society give me for this? People hope to self-make themselves and get "there" on their own. But where is there? "In Estonia it is the status among others - expressed by a new car and a house. Life like in a movie," Marili adds.

In Scandinavia and Europe the focus on the society can be felt more. There are many people, all of them tough. But they do not show it - there is no need to seek attention at any cost like Estonians tend to do.

The Dutch have a dignified history and they are very self-conscious people. At the same time they accept new ideas. Everyone walks with their backs straight, doing their own thing. Estonians do little but talk loud. And no-one wants to be just a good citizen.

There are dogmas in Estonian society that inject complexes and cowardice into the young. You have to be like others, think similar, so that you wouldn't be screwed. You need to keep good relations. If you step on a tail you may endanger your future. Few people, such as Lauristin, say things straight out - they have nothing to lose. That is why many young Estonians going to the world suffer from an inferiority complex.

They feel not important and are modest accordingly. That, in comparison to an American, who has seen nothing outside his country, but feels superior nonetheless. We need to encourage our young to keep their backs straight. It's a question of culture and values we obtain through experience and with the support of our home (and society).
Marili's friends' circle is not a political one. But still they use a saying - let's not talk about politics, it's dirty. If people see that many things are done dirty, that there's juridical correctness without moral one, it develops similar mentality in our young. There has been more of this lately. Direct and open unworthy conduct is equal to spitting to people's faces.

Despite all that young people still go to politics. Especially the high achievers; and even the student bodies are already political. But this could wait. There should be a time to study abroad, understand how the world works, make a professional career and do something in the real life. One should go to the politics only when they have something to give. When there's something you know really well and can rely on when making general politics.

Marili concludes that young people don't know where this country is going. They ask, why should we waste ourselves here? Why's there a glass ceiling to our society, obstructing our growth? These questions are asked by people who actually care about Estonia.

These are merely one youth's feelings towards her country, but they invoke thought. It's the better part of our young that do not feel at home in this society. If we do nothing they might grow to be the next generation of student freedom-fighters. Selfless young in pursuit of justice, the ones we decorate with medals in another three fourths of a century.

Sven Grünberg said that too many grumble about this country. And he said it well, but we must also not forget that the right to grumble is called the freedom of speech - corner stone to democracy. But the constitution also tells as to secure and develop our country. For the present and future generations. With these generations.
In the Development Fund we plan to include more directly at least 100 of our most brilliant young people - our future thought leaders, public figures, businessmen and politicians. To brainstorm together, to debate and to set big goals to our country's economy. What will you do?

Ott.Pärna@arengufond.ee, CEO.

1 January 2010 was the date of entry into force of a new Bailiffs Act which established, for the first time in Estonia, a joint professional chamber of bailiffs and bankruptcy trustees and amended, among other acts, the Bankruptcy Act.

Some examples of the new Bailiffs Act and the 151 amendments to the Bankruptcy Act are presented below:
Similar to the Estonian Bar Association, the Chamber of Bailiffs and Bankruptcy Trustees has been established pursuant to law as a legal person in public law. In accordance with the Act the tasks of the Chamber include, for example, promotion of professional activities of bailiffs and bankruptcy trustees, incl. conduct of examinations for bailiffs' assistants and bankruptcy trustees, conduct of trainings, organisation of in-service training and checking the performance of the in-service training obligation. Earlier any issues related to organisation of examinations were within the competence of the Ministry of Justice. Furthermore, other more important amendments related to the competence of the Chamber include supervision of professional activities and dignified behaviour of bailiffs and bankruptcy trustees as well as checking the existence of the professional liability insurance of bailiffs and bankruptcy trustees.

Certain additional synergy will hopefully be received as a result of the Chamber's activities in organising the keeping of a joint warehouse of movable property to be sold in execution and bankruptcy proceedings, the development and management of information systems required for the work of bailiffs and bankruptcy trustees and the organisation of management of documents subject to archiving. According to law, an electronic auction environment will be introduced by no later than 1 January 2013. The effective management and cooperation of the Chamber will be placed within the competence of the following eight bodies: occupational union, professional union, council, board of the occupational union, board of the professional union, examination board, audit committee and court of honour. According to the Ministry of Justice, a person designated by the Ministry of Justice will be responsible for the management of the Chamber until the election of the council and the boards of the occupational union and the professional union of the Chamber.

In accordance with amendments to the Bankruptcy Act, a bankrupt debtor may only be deemed to be such a person with regard to whom the court has declared bankruptcy. In accordance with the draft, the amendment was necessary due to the fact that the term "commencement of bankruptcy proceedings" was abolished and replaced by "appointment of an interim trustee". The reason behind the desire to relinquish the "commencement of bankruptcy proceedings" is to avoid the labelling of a person as bankrupt before the declaration of actual bankruptcy. Such labelling may bring along negative economic consequences for the debtor, particularly in cases where an unjustified bankruptcy petition is filed. Negative consequences arise from the dismissive attitude of the society to the bankrupt person - there is a strong likelihood that most economic relations will break off and there will be no other possibilities for the person (who was able to cope before the bankruptcy petition) than to go bankrupt.

From this year on, instead of a ruling made about commencing bankruptcy proceedings, such proceedings will now start with the declaration of bankruptcy. The commencement of bankruptcy proceedings will be made equal to the declaration of bankruptcy. This amendment will also inter alia remove the confusion in the context of cross-border insolvency proceedings where it was not quite clear which judicial decision the court of a foreign state had to automatically recognise in the case of insolvency proceedings in Estonia.

However, in the light of the new wording we could also look at the applicable Reorganisation Act which refers, in quite a lot of important issues, to bankruptcy proceedings commenced with regard to an undertaking and which, as of the entry into force of the amendments to the Bankruptcy Act, may take on a different substantial and legal effect - at least as long as the Reorganisation Act is amended in turn.

Following the example of the German Insolvency Act (1999), for the first time the provisions of the proceedings for the release of a debtor who is a natural person from obligations (known also as Chapter 11 of the Bankruptcy Act) have taken effect in Estonia in 2004.

In other developed countries the respective provisions for alleviating the burden of debt of natural persons had existed for a long time, e.g. in Denmark since 1984, in France since 1989, in Finland and Austria since 1993, in Norway and Sweden since 1994, in the Netherlands since 1997 and in Belgium since 1998. After having waited for six years, in January these provisions entered into force with regard to debtors who are natural persons which, under certain circumstances, also allow proceedings for release from debt in the case of abatement, i.e. if the debtor is insolvent, but his/her assets are insufficient to cover the costs of the bankruptcy proceedings and it is impossible to recover or reclaim the assets or if the satisfaction of the claims is unlikely. Up to now the applicable principle was “are you rich enough to go bankrupt?”, as in the event that the abatement of bankruptcy proceedings took place before the declaration of bankruptcy, it was impossible for a debtor who is a natural person to get involved in the proceedings for the release from debt.

As a result of an amendment to the Bankruptcy Act, the principle prevalent in bankruptcy proceedings that the proceedings for the release from obligations can only be conducted in the case of such natural persons who have assets that are at least sufficient to conduct bankruptcy proceedings will be relinquished. A petition for commencement of proceedings for the release from obligations may be filed by the debtor who is a natural person by filing a bankruptcy petition or after a bankruptcy petition filed by the creditor or, in addition, before the first general meeting of creditors or during bankruptcy proceedings when the court begins the termination of bankruptcy proceedings due to abatement.

Thus, it is possible for the debtor to file a petition at almost any time (before as well as after the declaration of bankruptcy). A positive side to proceedings for the release from obligations applicable up to now was the motivation of people to deal with their debt and file a bankruptcy petition early enough. However, the procedure applicable to date included a shortcoming, as a person who no longer has assets lacks the motivation to strive for a “new and better life”. The reason was that within thirty years creditors could take away all of the assets acquired by the debtors. In accordance with the explanatory memorandum to the draft, the new act is based on this value judgement. The question which may arise here is: is there not a danger that a person who has caused his/her insolvency intentionally will be released from his/her obligations?

However, it is hoped that this problem will be avoided via a filter mechanism, i.e. both the prerequisites of the regulation of the proceedings for release from obligations for conducting proceedings and supervision will be more stringent.

The reason the Estonian Development Fund was established as a provider of venture capital is even more valid today than it was at the time of the fund’s establishment – the need to create a firm basis on which to support and strengthen Estonia’s long-term growth and its competitive position internationally.

The provision of early and growth-stage venture capital has a significant role to play in generating a critical mass of companies with international growth ambitions in the country. Only by developing business models which are capable of competing against others and which offer considerable added value will Estonia be able to make the most of the therapeutic effect of the recession, modify the structure of its economy and emerge from the financial crisis as a winner.

We have found ourselves in a situation where the country lacks courageous entrepreneurs striving for international growth. One of the major challenges facing the Estonian Development Fund is to develop the venture capital market so that it produces significantly more innovative and uniquely competitive technology-based business ideas, entrepreneurs and businesses which are all worthy of investment.

We also need to ensure that these entrepreneurs are willing and able to raise more than just money. They often have the technological potential (offering a product or solution), but fall down when it comes to marketing their products or services, outlining their strategies and financial prospects and raising capital. But what venture capitalists do is match new technology or new business models to management experience and networks which allow us to capture and secure ourselves a place on the global market.

Since Estonia has no particular advantage or pull factors to offer as a growth environment for companies with international focus which would entice entrepreneurs to the country and thereby increase the number of business projects attractive to venture capitalists, available investment capital is instead being channelled outside of Estonia into projects with growth potential. It is a catch-22 situation. You need two things for growth: capital to invest and attractive businesses to invest in. In Estonia the capital investments of smaller private investors need pampering, as the majority of such investors lack the knowledge and/or the courage to make initial investments in IT or biotech start-up companies. They prefer more traditional branches of industry with more tangible assets.

The Estonian Development Fund encourages the market to broaden its horizons, itself making direct investments in early-stage high-risk start-up companies with a stronggrowth potential and boosting the market's willingness and ability to invest generally by promoting co-investors and implementing best practice. This last one is something from which both the start-up phase of traditional (manufacturing) industry and companies in need of ‘re-start-up' or restructuring win. By encouraging private investors to invest and entrepreneurs to move towards far-reaching growth, ‘lifestyle (over-the-corner) businesses' will also change their tune and look to faster growth and a bigger market.

The long-term effect of venture capital on the economy as a whole can be seen in the example of its biggest market – the United States. The companies which received early-phase venture capital between 1970 and 2005 currently employ approximately 10% of the country’s private sector workers, who account for 17% of GDP. Many business operators who were given a shot of venture capital doubt whether their companies would ever have gotten off the ground, or developed at any more than a snail's pace, without it.

The best examples of venture capital investment internationally are Cisco, Starbucks, Google, eBay, Apple and Skype, while the venture investment of the U.S. Small Business Administration Investment Division has led to an explosion of stars like Compaq, Staples, Intel, Sun Microsystems and FedEx. The experience of the United States, which is at the forefront of the venture capital market, shows that in terms of growth, companies financed through venture capital have consistently outshone those that went without a shot of smart money.

In order for Estonia to reach a middling sort of footing in European terms, at least 0.1% of GDP - between 200 and 250 million kroons - must be invested as early-stage venture capital annually. (The figure in the United States is 2% of GDP annually.) Since the average length of time from raising venture capital to exiting an investment is between 5 and 7 years, the volume of early-stage investment funds in the country should be between 1 and 1.5 billion kroons, provided, for the most part, by funds with reliable cornerstone investors which are based on private capital. In a recession any kind of capital offer is going to be restricted, but early-stage access to capital creates the foundations needed for sustainable new companies and a basis for subsequent, later-stage private sector investments. You reap what you sow: if you don't plant the seed, it will never bear fruit.

As of August 2009 the Estonian Development Fund had made five early-stage investments, pouring almost 36 million kroons into business models with international breakthrough potential. Three of these investments have been made in the last nine months. This is more than any other private sector early-stage capital provider invested in Estonian companies in the same period. By the end of 2009 our investment portfolio is likely to include as many as nine growth companies. Although you do find competitive business models in all branches of industry, the world is primarily seeing new sources of growth in ingenious IT applications, clean energy and the life sciences.

In order to generate more ambitious companies in which to invest venture capital, the Estonian Development Fund has founded a virtual incubator of international business called SeedBooster, in which start-up companies are prepped for investment by consulting and advising the entrepreneurs and developing their plans for growth. Five seed-phase business projects are currently being incubated in SeedBooster under the watchful eye of our investment experts.

The Estonian Development Fund is continuing to look for talented entrepreneurs to open the door to, as well as forward-thinking investors with whom to make big, bold investments.

heidi.kakko[A]arengufond.ee, Head of Investment Division