小企业管理第四讲.pptx

小企业管理第四讲

SmallBusinessManagement

ProfessorHornadayLecture4

SmallBusinessSourcesof

CommercialCreditCommercialBankLoans-36%CommercialBankMortgages-25%FinanceCompanies-23%VentureCapital-10%SBALoans-6%Source:SBA,1996

GoalsofGovernmentAssistanceEconomicGoalsIncreaseEconomicEfficiencyIncreaseEconomicGrowthProvideFinancingnotAvailablefromthePrivateSectorPoliticalGoalsProvideEmploymentIncreaseBusinessOwnershipNarrowIncomeGapProvideaForumforSmallFirms

1995SmallBusinessAdministration(SBA)LoanPrograms504DevelopmentLoans-$2,5007(a)LoanGuarantees-$7,700SBICSeedMoney-$375Source:SBA,1996($millions)

SBAGuaranteedLoansLenderofLastResortIndependentlyOwnedandOperatedNotDominantInFieldMax$500K,Average$175KSBAGuarantees85-90%ofLoanRequireCollateralandPersonalGuaranteesPrimeRate+2.75%for10-25YearsSource:SBA,1996

1995SBAGovernmentLoansUsedbyLessthan1%ofSmallBusinesses55,600LoansGuaranteedValuedat$9BillionDefaultRateof19%

RisksofBankLending50%ofU.S.Start-UpsGoneafter3yearsBanksUseDepositorFundsforLoansBanksnotVentureCapitalistsLackofBankIndustryandMarketExpertiseBankTransactionCosts

The“5Cs”ofBankLendingCharacterCapacityCapitalCollateralConditions

SmallBanksLendtoSmallBusinesses

Source:WSJ,1996%ofSmallBusinessLoans

OutstandingLoansin1995LargeBanks-$71.9BillionSmallBanks-$212.3BillionsSource:SBA,1996

EarlyFinancingStages

NoRevenues,NoProfitsSeedExpansionLateStageHigherRiskLowerRiskConceptDevelopmentCommercialization

InflowsintoUSVentureCapitalFundsSource:TheEconomist,2000Billions

1995VentureCapitalSeedMoney

Source:BusinessWeek,1996$MillionsCommunicationsInformationSoftwareDistributionProductsHealthCare

U.S.Start-UpVentureCapital

1stQuarter2000Source:WSJ,2000Billions

VentureCapitalandtheInternetSource:WSJ1999Billions

IrreducibleUncertaintyInvestmentBhid