Venture Capital - an alternative for small and medium entrepreneurs

Studies in the Spanish economy have your interest in the problems that have some small businesses and the media. Problems of various kinds, tax, financial, administrative, etc. These companies represent about 95% of the total enterprises in the country and 60% of jobs, generate 65% of sales and produce 40% of goods are exported.

Small and medium enterprises but not in the equity markets, which on this occasion the figure, funded by individualsand they are naturally less competitive compared to other companies that do figure in these lists. They have fewer opportunities for funding and can only rely only on themselves to keep profits afloat. They depend on the property and assets of the owners to use, it can about the business or use as collateral for the financing of specific requirements, a short-or long-term loan from a financial institution. It is under this context that we support the concept of venture capital.

We can not over threemajor problems that small and medium enterprises at the start and that have hindered their economic development. This dependency cycle, if you will. For small businesses, it is difficult to obtain a loan from a bank, and because the bank does not trust their ability to pay, they find high rates of interest for which it provides a competitive disadvantage against their competitors. For all these reasons, they can not offer as competitive prices as other companies. Again, the only way for them is aFinancing structure, such as venture capital.

Venture capital is a way to profit on small and medium enterprises, so that their development is the regeneration of the industrial structure of the country of vital importance.

Venture capital financing is a tool primarily to small and medium enterprises, through a company that specializes in investing or not (investment company) capital injection in a small or medium-sized enterprises (receiving company) in a minority and a relatively short targetSpace of time.

If you prefer, we can understand how venture capital formula, which provides financial resources for enterprises, especially small and medium enterprises in the form of permanent or long-term funds with the same risk that the funds contributed by the employer, as they usually have no warranty or special allowance. It is important to seek an appropriate balance between the percentage of ownership and control of the company and participate in the use of various financial instruments.

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