Size enterprises play a role in obtaining funding

5/4/2016 0:00

BAGHDAD - Imad Emirate
Economic academic Dr. Abdul Sattar Abdul-Jabbar said of the Faculty of Administration and Economics at the University of Mustansiriya: that finance is at the forefront of the problems faced by small enterprises, because the small size of the institutions to be created or already existing and to be financed, making it difficult to access bank loans for many reasons.

He said Abdul - Jabbar said in an interview »Sabah» of the most prominent of these reasons high likelihood of risk and the lack of adequate when the owners of those institutions guarantees, as well as lack of awareness of the bank and the lack of feasibility and records computational studies that reflect the financial position or the future of the facility.

Institutions growth , adding there is a wide variety and the variety of sources of institutional funding, respond differently to the growth of institutions levels , whether loans mini or micro or material support government and all modes of advanced funding , including entering into the stock market, banks , specialized financial institutions and play an important role in overcoming the known conventional loan obstacles.

types of financing and stressed that the most important affordable alternatives that were found to finance small and medium enterprises investments are leasing loan, a nascent financing, it is the delivery of real estate or equipment for a specified period of time in exchange for premiums to be agreed upon, and restore what comes to providing equipment or real estate in the beginning of the activity, and the advantage of this type of funding flexibility and easy if we compare it with the traditional venture funding. He pointed to the existence of another type of financing , a financing through venture capital , where he could, economic as a tool, that provides for the project capital flexible and long - term through its participation in the ownership of the enterprise, as well as administrative assistance to institutions emerging or developing, especially with new ideas institutions.

«means risk capital provision of money from investors in the form of fund to be used to finance investments in their own business by participating in the property (usually 20 percent to 40 percent in the ownership of capital) is providing this service usually through venture capital companies, banks and financiers.

» he said Abdul - Jabbar also no financial market financing (SEC), as can the market be the shelter of small and medium enterprises if there is acceptance of the entry of new shareholders, may wish to providers of capital through participation in the property divestiture in another group of small and medium enterprises, and in this case is likely to former small businesses become mature institutions by giving up its status as private property, and can be done by offering its shares on the stock exchange, or through the initial offering of shares to the public. and: I have made ​​many countries to design private exchanges for small enterprises in order to avoid the obstacles that discourage those institutions from entering into the stock market , such as high costs and registration requirements in the market.

government support and the subject of government support for institutions said Abdul Jabbar, a strategy governments differ in their support for medium - sized enterprises and small through a variety of mechanisms , whether they directly or indirectly, indicating government support and funding policies include a diverse package of measures, including providing exemptions fiscal and tax college or relative according to the type of activity, and the participation of loan guarantee programs in collaboration with various banks, and set up special programs for technical training and technical advice, as well as technical assistance for organizations that need to market study, the establishment of business incubators developed as a mechanism to help emerging institutions away from the ocean pressure off.

stage specific targets and concluded Abdul - Jabbar at the conclusion of his speech to say: for the purpose of establishing the institutions , it is necessary to save money much to her, because the aim of these projects is the diversification of production and solving the unemployment crisis and poverty alleviation, and thus boost the economy, noting the essential need to develop strategies for these same goals of institutions specific achievable and keep going. he stressed on the necessity that there will be points of availability of finance low - interest as funding can be springboard for the adoption of these projects, and the government plays a major role in the financing of small and medium enterprises through the creation of supportive regulatory frameworks and adoption of allocations from the state budget for the views that these institutions are funded through a structured work mechanisms.