The global body for professional accountants

Financing FuturesEnterprise Profiles

The global body for professional accountants

1. The informal enterprisehttp://www.lendwithcare.org/entrepreneurs/index/2629

The global body for professional accountants

The global body for professional accountants

THE INFORMAL ENTERPRISE

• 0 salaried employees, 100% x per capita GDP turnover

• Has run a general store for the last 2 years• Growth is slow due to physical constraints• Financed from personal savings• Needs funds for new stock, more products and

to begin expanding premises• Risks: quality of management, competition,

customer spending and defaults, natural disasters, crime, compliance

• Funding needs: 12.5 x per capita GDP

The global body for professional accountants

2. The Disruptive Enterprisehttp://www.didion.com/company.html

The global body for professional accountants

The global body for professional accountants

THE DISRUPTIVE ENTERPRISE (I)

• 0 salaried employees, 0 turnover• Developed a new technology for

reclaiming and sorting scrap metal that could revolutionise the industry

• Has used personal savings plus family funds to build a few prototypes

• Technology needs testing, refinement, patenting. Won’t sell for another year

• Risks: buyer interest, regulatory approval, imitators

• Funding needs: 10x per capita GDP

The global body for professional accountants

THE DISRUPTIVE ENTERPRISE (II)

• 45 salaried employees, 300 x per capita GDP turnover, growing rapidly

• New technology patented, in production and profitable, sold in multiple countries

• VC investors but little leverage• Assets mostly patents, licences, stock• Needs funds for overseas expansion• Risks: imitators, regulatory policy• Funding needs: 3,000x per capita GDP

The global body for professional accountants

3. The steady-state family firmhttp://www.dw.de/dw/article/0,,6385455,00.html

The global body for professional accountants

The global body for professional accountants

THE STEADY STATE FAMILY FIRM

• 30 employees, 100x per capita GDP turnover

• Mid-range furniture manufacturer, owned by same family for 100 years (3nd generation)

• Slow but relatively steady growth• Financed from personal savings and some

retained earnings• Needs funds for liquidity cushion and to

upgrade two key pieces of machinery• Risks: customer spending and defaults,

dependence on the owner-manager, governance, compliance

• Funding needs: 15 x per capita GDP

The global body for professional accountants

4. The leading corporatehttp://www.unilever.com/

The global body for professional accountants

The global body for professional accountants

THE LEADING CORPORATE

• 200,000 employees, 1m x HQ country per capita GDP turnover

• Diverse portfolio of well known consumer goods in multiple locations

• Share of consumer spending in most markets growing slowly.

• 100 yrs old (some brands older), publicly listed• Plans to acquire popular local brands &

advertise heavily in 10 promising new markets • Risks: managing acquisitions, understanding

target markets, consistent consumer spending• Funding needs: 125,000 x per capita GDP