The global body for professional accountants
ENTERPRISE PROFILES
• Four (+1) ‘typical’ businesses• based on real businesses somewhere in the world!
• Try to imagine…• Their business needs dictate their funding needs• The shape of the financial industry dictates how they
will be met.• All businesses are going concerns capable of profits
• Will they be equally important in all scenarios?
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 ENTREPRENEUR
• 0 salaried employees (family members involved) • Has run a general store for the last 2 years• Growth is slow due to physical constraints• Needs funds for new stock, more products and
to begin expanding premises• Risks: quality of management, competition,
customer income, natural disasters, crime, compliance
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
• First financing round• 0 salaried employees, 0 turnover• Developed a new technology for
reclaiming and sorting scrap metal that could revolutionise the industry
• Has built a prototype• Technology needs testing, refinement,
patenting. Won’t sell for another year• Risks: buyers, regulatory approval,
imitators
The global body for professional accountants
THE DISRUPTIVE ENTERPRISE (II)
• Second financing round• 45 salaried employees, growing rapidly• New technology patented, in production
and profitable, sold in multiple countries• Assets are mostly patents, licences, stock• Needs to expand overseas• Risks: imitators, regulatory policy
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 salaried employees, slow, steady growth• Mid-range furniture manufacturer, owned by
same family for 100 years (3nd generation)• Needs liquidity and to upgrade two key
pieces of machinery• Risks: customer spending, dependence on
the owner-manager, governance, compliance
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, publicly listed• 100 yrs old. Diverse portfolio of well known
consumer goods worldwide• Share of consumer spending in most markets is
steady; growth concentrated in a few heavily contested markets.
• Needs to acquire popular local brands & advertise heavily in 10 promising new markets
• Risks: managing acquisitions, understanding target markets, consumer spending, generics.