小企业管理第4讲.pptVIP

Small Business ManagementProfessor Hornaday Lecture 4 Small Business Sources of Commercial Credit Commercial Bank Loans - 36% Commercial Bank Mortgages - 25% Finance Companies - 23% Venture Capital - 10% SBA Loans - 6% Goals of Government Assistance Economic Goals Increase Economic Efficiency Increase Economic Growth Provide Financing not Available from the Private Sector Political Goals Provide Employment Increase Business Ownership Narrow Income Gap Provide a Forum for Small Firms 1995 Small Business Administration SBA Loan Programs 504 Development Loans - $2,500 7 a Loan Guarantees - $7,700 SBIC Seed Money - $375 SBA Guaranteed Loans Lender of Last Resort Independently Owned and Operated Not Dominant In Field Max $500K, Average $175K SBA Guarantees 85-90% of Loan Require Collateral and Personal Guarantees Prime Rate +2.75% for 10-25 Years 1995 SBA Government Loans Used by Less than 1% of Small Businesses 55,600 Loans Guaranteed Valued at $9 Billion Default Rate of 19% Risks of Bank Lending 50% of U.S. Start-Ups Gone after 3 years Banks Use Depositor Funds for Loans Banks not Venture Capitalists Lack of Bank Industry and Market Expertise Bank Transaction Costs The “5 Cs” of Bank Lending Character Capacity Capital Collateral Conditions Small Banks Lend to Small Businesses Outstanding Loans in 1995 Large Banks - $71.9 Billion Small Banks - $212.3 Billions Early Financing StagesNo Revenues, No Profits Inflows into US Venture Capital Funds 1995 Venture Capital Seed Money U.S. Start-Up Venture Capital1st Quarter 2000  Venture Capital and the Internet Source: SBA, 1996 Source: SBA, 1996 $ millions Source: SBA, 1996 Source: WSJ, 1996 % of Small Business Loans Source: SBA, 1996 Seed Expansion Late Stage Higher Risk Lower Risk Concept Development Commercialization Source: The Economist, 2000 Billions Source: Business Week, 1996 $ Millions Communications Information Software Distribution Products Health Care Source: WSJ, 2000 Billions Sourc