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Small Scale Business Grants: Private Investors.

Small scale business grants: private investors.

Private investors or as them also call ?business angels? is one of financing ways, somehow credit institutes, investment funds, etc. They are more passive and their investment possibilities seldom exceed 1 million dollars.

If you don’t have assets interesting to the creditor, there are no enough means to interest the institutional investor, a business angel, that is required to you to begin new (or to expand existing) business then they are the best choice at an early stage of business.

Let’s make the small classification of business angels:

The co-owner:

Basically it is departed from affairs, secure individuals. The investment is aim to earn money. It is usual acquire a certain part of business and prefer not to interfere with management

The businessman:

Usual it is successful businessmen (businesswoman) and owners of acting business. Unlike co-owners, are ready to incur more risk and to put more money as have a steady source of the income. Their main advantage consists in that they demand less and more freedom in activity allow remaining the observer if certainly all goes well.

The enthusiast:

Prefer not to interfere with managerial process, but with the big enthusiasm take part in strategy development. Basically interests new, earlier the heights not comprehended by them.

Director or the successful manager:

Proceeding from the experience, they believe that precisely know how to manage business. Active enough participants of process business, and at the same time useful, especially at an early stage of business as will help to avoid many problems.

The professional:

Professional investors are most useful at a stage of the development already constructed, business. As their participation in the project can often testify to possible success of the project though and it is not obligatory as their participation, can be considered as a step on a way to portfolio or to the strategic investor.

Financial aid for the small scale business: Sharing of risks

Speaking about prospects of a mass exit of banks on the market of crediting of the enterprises of a small-scale business, we can name two sufficient conditions. The first is the understanding of potential of this market and that circumstance that risks of crediting of a small-scale business is not extreme. They are quite operated by means of a diversification and application of competent technologies. By the way, share of the delayed credits of small enterprises ? only 1,5 %. Therefore the will of a management of bank is defining.

The second condition concerns starting financing of small enterprises and the micro financial organizations. In this business, banks won?t manage without the state support in a kind of subsidizing of the rate and guarantees under given out credits.

It is very crucial that government, despite this recession is not abandoning to help small businesses. And small business grants can be a true helper today.

But, surely, you should remember that today the fight for small business grants as well as for other types of grants has become more fierce. This is logical – more businesses need them. So before you start your battle for the small business grants, please visit this blog for more helpful tips about grant industry.

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