Wednesday, April 24, 2019
Entrepreneurial Finance Essay Example | Topics and Well Written Essays - 3500 words
entrepreneurial Finance - Essay ExampleThe SMEs are mostly started by youngsters with vision and drive, and in many cases, the businesses started at a modest level could grow as a great business empire. The failure stories whitethorn be mainly due to insufficiency of financial support at the initial stages or lack of experience in hold outning the business. The community of SME promoters claims to be encouraged and supported by the authorities for the balanced economic development in the country. Apart from the financial assistance, they need to be provided with necessary instruction in the aspects such as financial matters and marketing for running the business efficiently. The recommendations made in the make-up seeks to address these lacunae through a government sponsored and structured institutional backing for SMEs to support them financially. With regard to provision, the associations for SMEs need to be formed, if it not already existing in a particular case, and stren gthened to render training facilities to the promoters or employees of the SMEs in different areas which include financial management, marketing, quality control methods and R&D relating to various businesses Introduction The niche areas in various businesses offer immense scope in the context of SMEs for specialization, festering and development with modified competition because the projects with limited or localized demand and limited investment spending are not suitable for the growth of big corporate companies. This is one of the reasons why corporate companies stomach on retail, telecom, food processing, housing and infrastructure where the volume could be scaled up and the growth prospects for the big companies are compatible with the level of investment. Therefore, in the absence of acute competition and the need for only limited investment outlay and labor requirement, superior level of personalized service and specialist experience in the chosen field have been the pri me drivers of the growth of the SMEs over the period of time. Hussain, Milman & Matlay (2006 p. 586) states In recent years, form _or_ system of government makers in the UK have attempted to address the apparent market failure to supply adequate and proper(postnominal) finance for SMEs. The efforts should be based on continuous review and radical restructuring of the domestic economy in the backdrop of liberalization and globalization. Background The small and medium enterprises play a significant role in the economic development of a country. World Business Council for Sustainable Development states that the SMEs can play a much bigger role in developing national economies, alleviating poverty, participating in the global economy and partnering with larger corporations. For an economic growth to be sustainable in the long run, the growth must be balanced encompassing all the sections of the society. There are certain misgivings about the growth and development of SMEs promoted a nd run by heathen minority people. Financing in respect of SMEs depends on various factors, but aline the financial needs of the ethnic minority SMEs with the mainstream national growth and development is very important for a peaceful prosperity. Objectives The objective is to identify the causes for the disparity in financing to small and medium projects promoted by the ethnic minority people, analyze the causes leading to this problem and recommend solutions to overcome these problems.