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.
In conclusion, policy makers and practitioners often try to assist in the formation of new firms but do not always succeed. Many firms fail despite all the assistance however the important factor is that the government continues to promote their creation so that new jobs and industries can be created. (Storey 1994) Both policy makers and practitioners need to ensure a level playing field so that the economy can grow, develop and compete with other economies around the world.
The following report analyses Johnson and Johnson from a third party perspective. The report will commence with an overview of operations followed by an evaluation of the company; its financial performance, capital structure, and dividend policy. Additionally we aim to provide advice to potential investors based on relevant financing theories to whether or not it is a good company to invest in.
Activity-based funding (ABF) is widely used in the manufacturing industry and is becoming a common costing method in health care. Hospitals in Europe, Canada, Victoria and Western Australia are currently being financed by activity based funding and more are making the switch. This essay will examine the practice of Activity based funding and determine if value is being added with regards to costing within hospitals and to what extent.
UK Increasingly a Nation of Entrepreneurs. (2003) Available from: http://www.prnewswire.co.uk/cgi/news/release?id=114873 [Accessed on 22 July 2011].
The funding of public education has long been an issue for the state government of Texas. Starting before Texas was even a state, public education funding was at the forefront of politicians’ minds. In 1836, one of the reasons Anglo-Texans wanted to become independent from Mexico was Mexico’s lack of a public school system (An Overview of the History of Public Education in Texas, 2016). This drove the desire of President Mirabeau B. Lamar of the Republic of Texas to create legislation that would grant public schools land (A Brief History of Public Education, n.d.). This act set aside four leagues of land per county for the use of free education centers and thus began the funding of public education by the state government (An Overview of the History of Public Education in Texas, 2016). In the last 177 years, the Texas Legislature and the Texas Education Agency have created numerous acts and laws regarding the funding of education, but it has been in the last 50 years that this topic has become highly contested, resulting in several lawsuits and endless efforts (by the school districts) to equalize the distribution of funds to Texas school districts (Texas School Finance History, n.d.). In sum, the complex issues and policies that surround the funding of public education are derived from a combination of the legislature, bureaucratic agencies, and local governments in the form of school districts.
Not only do the families of impoverished children lack resources necessary for success, the school districts themselves lack vital assets as well. In reference to the PISA exam, “the average American PISA reading score for higher-income schools exceeded that of all other developed countries, while the average score for lower-income American schools was far lower” (Friedman). Extreme funding gaps and lack of proper government funding are the main contributors to this drastic distinction in educational success.
The primary concern for a business such as Brooke and Ridge in the early establishment stage is undercapitalisation with erratic, inconsistent cash flow shortages. This negatively impacts a business hindering its ability for development as well as its performance in a competitive market. In addition, financial aid is often not provided by large financial institutions as a result of their cautious nature towards new businesses. With ...
Consider the compact of co-responsibility between the government and recipients. What is needed to make the compact work? Progresa had the goal of increasing the basic capabilities of extremely poor people in rural Mexico (Levine, 2007, p.67). Progresa is a program developed by the government of Mexico in 1997, and was implemented by President Ernesto Zedillo. With the help of Santiago Levy who was an economist, Progresa was developed to help break the cycle of poverty in Mexico. In order for the compact to work between the government and the recipients, a change had to take place from the governments’ standpoint. The government came to the realization of what the recipients needed and to provide that for them. Since the government was willing to fund the program to help the recipients, it demanded the recipients’ responsibility towards the program. For the first time, the Government of the Republic set in motion a program that will deal with the causes of poverty in an integral manner (Levine, 2007, p. 67). The recipients would be held accountable for their part in the program. They would be held liable for participating in the program by being responsible and attributing the responsibility of their choices towards the program. The government funded the program financially while the recipients’ responsibility included sending the children to school, getting the children immunized, and making sure their healthcare and nutritional needs were met. What was needed to make the compact work was the union and responsibility of the government and the recipients as a team.
Adelman, P. J., & Marks, A. M. (2010). Entrepreneurial finance. (5 ed.). Bedford, Texas: Prentice Hall.
As colleges’ funds dry up, colleges must turn to the public to further support higher education. By raising state taxes, colleges can collect funds to help improve the school’s budgets. The state provides funds from the taxes for colleges to receive a certain amount for each student currently enrolled. All community and traditional four year colleges collect these funds in order to maintain the school’s budget. As reporter, Eric Kelderman states, “less than a third of colleges’ budget is based from state taxes”. The school’s budget is how colleges are able to provide academic support programs, an affordable intuition, and hire more counselors. Colleges must now depend on state taxes more than ever for public colleges. Without collecting more funds from state taxes, as author, Scott Carlson explains how Mr. Poshard explains to senators “our public universities are moving quickly toward becoming private universities…affordable only to those who have the economic wherewithal to them” (qtd. in.) Public colleges must be affordable to anyone who wishes to attend. If colleges lack to provide this to students, it can affect dropouts, a student’s ability focus, and cause stress. The problem of lack of funding is that colleges have insufficient funds. Therefore, the best possible solution for the problem of lack of funding would be increasing and collecting more funds from state taxes.
In this essay, I will give brief review notes for “Access to Capital Structure, and the Funding of the Firm” (Omer Brav 2009) which will be focused on the goal of this easy, how and why the theoretical hypotheses are tested and what are the findings. Some discussions about data, methodology used and theory defects will also be included in this essay for critical comment.
Before 1980 the only way to find the investment for any startups was banks and in 1980's there were investors who were interested in technology business. In this 20th century, small and mid-sized enterprises (SMEs) have a low income and are not easy to get capital or financing from any financial institutions or bankers, but startups have an option to find their investments through a strategy called Crowdfunding, a venture to raise money from various people. This review infers the content on influence of crowdfunding in small and mid-sized enterprises (SMEs). This review emphasis on how crowdfunding is growing in SMEs, what are advantages and disadvantages of crowdfunding and a case study on how a company from Indonesia raised their money using crowdfunding.
Research on the Sources of Finance for a Business Firms sometimes need to raise finance for Working Capital and Capital Expenditure. Explain what each is and give examples. · Working Capital (or Revenue Expenditure) The working capital is made up of the current assets net of the current liabilities. It is vital to a business to have sufficient working capital to meet all its requirements. Many businesses have gone under, not because they were unprofitable, but because they suffered from shortages of working capital.
In the present business environment, organizations need adequate funds so as to operate effectively and efficiently. The financial strength of an organization enables them to have a competitive advantage over their competitors. Since most organizations main aim is profit maximization, all their activities are geared towards raising of funds. Organizations should therefore engage in activities that increase their income. There are several activities that organizations engage in with an aim of funds generation (About.com, 2011).
"So", writes the immortal Dr. Seuss, "be your name Buxaum or Bixby or Bray or Mordecai Ali Van O'Shea, you're off to Great Places! Today is your day! Your mountain is waiting. So…get on your way!" Unfortunately, unlike the graduating class this speech was addressed toward, many students in today's urban education system are not of to "Great Places", and will never get the chance to move mountains. These students attempt to learn without textbooks, proper laboratories, or even pencil and paper. The schools are falling apart around these children; in some cases sewage continuously floods the halls, the crumbling roof cannot shut out the weather, and there are even gapping holes in classroom walls. It is definitely not "their day".