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