小企业管理第4讲.pptx

Small Business ManagementProfessor HornadayLecture 4 Small Business Sources of Commercial CreditCommercial Bank Loans - 36%Commercial Bank Mortgages - 25%Finance Companies - 23%Venture Capital - 10%SBA Loans - 6%Source: SBA, 1996 Goals of Government AssistanceEconomic GoalsIncrease Economic EfficiencyIncrease Economic Growth Provide Financing not Available from the Private SectorPolitical GoalsProvide EmploymentIncrease Business OwnershipNarrow Income GapProvide a Forum for Small Firms 1995 Small Business Administration (SBA) Loan Programs504 Development Loans - $2,5007(a) Loan Guarantees - $7,700SBIC Seed Money - $375Source: SBA, 1996($ millions) SBA Guaranteed LoansLender of Last ResortIndependently Owned and OperatedNot Dominant In FieldMax $500K, Average $175KSBA Guarantees 85-90% of LoanRequire Collateral and Personal GuaranteesPrime Rate +2.75% for 10-25 YearsSource: SBA, 1996 1995 SBA Government LoansUsed by Less than 1% of Small Businesses55,600 Loans GuaranteedValued at $9 BillionDefault Rate of 19% Risks of Bank Lending50% of U.S. Start-Ups Gone after 3 yearsBanks Use Depositor Funds for LoansBanks not Venture CapitalistsLack of Bank Industry and Market ExpertiseBank Transaction Costs The “5 Cs〞 of Bank LendingCharacterCapacityCapitalCollateralConditions Small Banks Lend to Small BusinessesSource: WSJ, 1996% of Small Business Loans Outstanding Loans in 1995 Large Banks - $71.9 BillionSmall Banks - $212.3 BillionsSource: SBA, 1996 Early Financing StagesNo Revenues, No ProfitsSeed Expansion Late StageHigher RiskLower RiskConcept Development Commercialization Inflows into US Venture Capital FundsSource: The Economist, 2000Billions 1995 Venture Capital Seed MoneySource: Business Week, 1996$ MillionsCommunicationsInformation SoftwareDistributionProductsHealth Care U.S. Start-Up Venture Capital1st Quarter 2000Source: WSJ, 2000Billions  Venture Capital and the InternetSource: WSJ 1999Billions IrreducibleUncertaintyInvestmentBhidé’s Inves