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Most often this problem concerns small and medium-sized enterprises. The causes are usually: economic conditions, high barriers to entry into the industry, possible reluctance to grant loans by banks, lack of experience of owners, uncertain business history, initially small revenues, inability to meet the requirements necessary to obtain capital from public funds, approach of investors who usually prefer to support initiatives that have a high chance of success or are verified to some extent - in the case of beginner businesses.
The risk is much higher because it is not known whether the market will positively accept the offered solutions. This is a common situation for startups. How to fill the capital gap There are many options for financing your phone number list company's business needs. These include: Private equity Investments under a private equity fund , in addition to purchasing shares of a selected company, may include granting a loan, issuing bonds, etc. Entities that can be involved in a private equity fund include.
Various types of organizations, financial institutions, companies and private investors. The most common projects for which capital is allocated concern support for the merger and acquisition process, cost optimization activities e.g. implementation of lean management practices , changes in the organizational structure, purchase of real estate and equipment. Business angels Another option is to use the help of the so-called business angels. These are usually private investors andassistance to small, developing enterprises and start-ups. In addition to obtaining financial benefits from such cooperation, companies can count on strategic consulting and expanding business contacts.
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