Susceptible bread for beginners
Posted by aloha on February 5th, 2012We are entrepreneurs, trying to set in motion the cart before themselves – creating a very small fund, with small loans to support those who want to start your own business. We want a practical example to show the government how it could be – as it should! – Operate in the development of the economic environment. Rather than just try to fill a budget with a miserable racketeering methods – such as trying to impose a luxury tax on company vehicles (at least at the time of writing, it was on the agenda).
Economic recovery and the reduction of unemployment Latvian can only encourage self-employed and they have built micro-enterprises. Today, most people are needed to create jobs for themselves and pay state taxes, rather than trusting “sitting on a benefit” or pošas journeywork abroad. Crisis time is the time when the public can remove rosy world of glasses and declare: nothing should stop dreaming of home nokijām who now grow up like mushrooms after rain, creating thousands of jobs and millions of profit. First, we need to build yourself a business environmental reason – small and medium enterprise (SME). When it will lead to economic progress, it also taps new Latvian large enterprises.
In order to overcome the negative tendencies in the economy, 23 different organizations (at present their number has grown), representing employers, micro, small and medium-sized enterprises, the Latvian Employers’ Confederation called on the 14th October agreed on a joint action program – a platform for SMEs – small business to protect its financial support and accessibility. The Memorandum of Cooperation was signed, which will determine our future actions in support of SMEs in policy, in cooperation with the authorities, local governments and the private sector. This document is based on the European Charter for Small Enterprises and the Small Business Act for Europe (it is accepted by the Latvian legislation). Similarly, SME platform activities are implemented according to the Latvian Sustainable Development Strategy and the National Development Plan targets.
In practice, the implementation of the memorandum of light of the guidelines, we are about ten private investors, we decided to quickly create a support fund for the promotion of mikrobiznesa. Currently, just a business start-ups have the most problems with fundraising.
Yes, ALTUM support program works well, but it is necessary for co-financing. Where to take families without savings or unemployed? If money is not, then people do not care that the law required Ltd share capital is reduced tenfold. To be able to start a business debutante necessarily need bread – startup investment. The world has already accumulated a great experience for beginners credit, and funds for that purpose by the private investors are classified as social entrepreneurship. Mikrobiznesa donor development is completely logical continuation of the work being carried out by the association leaders with new and emerging business mentoring programs – a business start-ups will soon be available not only for advice from experienced colleagues, but also an opportunity to receive financial support to set up the fund.
The proposed fund at the time of writing, still in the formative stage. However, everything is booming, and we have a great determination to become a Christmas gift for micro-enterprises, and adoption of the first application early next year for the issue of micro-finance (up to 5000 lats per applicant).
Information about the Fund is about to be inserted into the ECL site www.lddk.lv, it will be distributed to all organizations signatures.
I do not want to even for a moment would seem that this will be a charity. While social, it is a business. We, the investors, thus does not seek to make millions, but also not going to just izdāļāt your money. The received microfinance definitely will be charged (I think 7-8% range). Perhaps, the borrower will ask for a guarantee of two people – if the whole Latvian there is no one who is ready for you to join, it means that you are not really reliable. The loan applicant will develop a business plan and financial reasons, the conversation will sell their business idea Foundation representatives. Depending on how prepared the applicant is, how much motivation to start their own business, how clear is the business plan she submitted, the applicant may request review from two weeks to two months.
Since our Fund is low, then the micro will be provided only to direct investments – such as prospective business specifically required equipment, tools and techniques (or technologies) for the purchase. Simply put, we help you buy a fishing rod, not fish. The Fund will not be patronized or, conversely, disadvantaged sectors and trades. As well as we can credit the syrup, the IT software development. Objections should be provided for viable projects with very long, because the borrower will be responsible micro-time (3-5 years) to repay to the fund may lend money to new applicants.
Submitted applications will be processed the same fund investors – people with long business experience. They can not conjure rose ideas, clever language, or training are impressive. We will do everything that the proposed funding would not be attractive to builders of castles in the air, an adventurer or spent on the fund see an opportunity to change your car tires and pay consumer credit with another bank. We want to support people with a spark of excitement in the eyes of a family is willing to work hard, not them, who believe that they are entitled to assistance.
At the same time we, the fund-makers recognize the great responsibility we shall create the idea of other people – a commercial value! – Evaluation. The Fund will guarantee the confidentiality of business plans submitted and made public in any way the applicant plans without their own permission. We want people gaisināt potential fear that they could be captured by the intentions behind someone else.
That is the exact choice of the borrower for such funds, as shown by the experience of other countries, usually have the highest proportion of loans repaid, up to 99%. (In addition, in the end, but it is a micro-finance.) This practice is nothing new in Latvian, thus already operating in the Latvian Association of Rural Women Enterprise Fund, which received 50 thousand lats in the capital of the Mortgage and Land Bank. But it is now free money no longer exists, because all the money put into circulation, and either wait for the first will be repaid by borrowers. Obviously we, his starting funds, will seek to attract the new investors. I doubt if we want to wait idle for 2-3 years, while the first would be returned to their micro-credit borrowers, the fund will be able to continue to work.
As someone who has your company the 90th in the beginning created entirely from scratch, without a single penny busy (and it was then a general rule), I am still very skeptical appreciate the business that is created only with credit money. Experienced contractor firm has always invested in the funds – this is the best proof of the seriousness of the business.
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