The Sources of Funding

1316 Words3 Pages

The Sources of Funding

Introduction

"Money begets money. – John Ray"

Setting up your own small business or becoming a contractor seems very

appealing to many computer professionals. Though many businesses

finance start-up or expansion from personal assets, sooner or later

virtually all business owners need assistance from a financial

institution. It is difficult to do business without ever using credit.

[PISE] lists the various sources of funding available but the main

focus of this report will be to discuss how these ‘financial packages’

appeal to us and the difficulties which company’s or entrepreneurs

face to obtain these funds.

The report will try to conclude with a justification as to why one

method is preferred to another and evaluate against the most commonly

used source of funding today.

Grants and Government initiatives

Throughout the UK, there are hundreds of grants and support schemes

available via many different organisations and institutions. However,

the acceptance criteria of applications depend on many factors.

[Government Paper] suggests that grants should “play an important role

in boosting other – perhaps more relevant – areas of the innovation

system”.

The factors may include the area of business start-up, certain

business sectors or specific sectors of the population.

Whilst considering the variety of grants available, I was surprised at

the amount and range of grants available and the many acceptance

criteria. In many cases, the acceptance criteria was so strict and the

grants so small, that the effort involved in application, hardly

seemed worth it.

‘In many cases, compani...

... middle of paper ...

...ding for small businesses and entrepreneurs

were obtained by banks and the remaining 63% covers other sources. The

exhaustive, unappealing application process for which bankers loans

were famous for, are now becoming a thing of the past.

Bibliography/ References

[PISE] – Professional Issues In Software Engineering – Frank bott

[ZDNet] – http://news.zdnet.co.uk – Government aid brings tech jobs to

Yorkshire.

[Carol Graham] – Sources of funding for businesses – Carol Graham

(2000).

[Financial Times] – www.financialtimes.co.uk – The truth about bank

loans.

[Natwest Bank] – Business Information Fact sheet, Seeking Venture

Capital.

[British Venture Capital Association] – www.bvca.co.uk

[Government Paper] – www.parliament.the-stationary-office.co.uk - The

use of incentives to boost innovation.

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