现代小企业管理第四讲（英文版）.pptx
Small Business ManagementProfessor HornadayLecture 4Small Business Sources of Commercial CreditCommercial Bank Loans-36%Commercial Bank Mortgages-25%Finance Companies-23%Venture Capital-10%SBA Loans-6%Source:SBA,1996Goals of Government AssistanceEconomic GoalsIncrease Economic EfficiencyIncrease Economic Growth Provide Financing not Available from the Private SectorPolitical GoalsProvide EmploymentIncrease Business OwnershipNarrow Income GapProvide a Forum for Small Firms1995 Small Business Administration(SBA)Loan Programs504 Development Loans-$2,5007(a)Loan Guarantees-$7,700SBIC Seed Money -$375Source:SBA,1996($millions)SBA Guaranteed LoansLender of Last ResortIndependently Owned and OperatedNot Dominant In FieldMax$500K,Average$175KSBA Guarantees 85-90%of LoanRequire Collateral and Personal GuaranteesPrime Rate+2.75%for 10-25 YearsSource:SBA,19961995 SBA Government LoansUsed by Less than 1%of Small Businesses55,600 Loans GuaranteedValued at$9 BillionDefault Rate of 19%Risks of Bank Lending50%of U.S.Start-Ups Gone after 3 yearsBanks Use Depositor Funds for LoansBanks not Venture CapitalistsLack of Bank Industry and Market ExpertiseBank Transaction CostsThe“5 Cs”of Bank LendingCharacterCapacityCapitalCollateralConditionsSmall Banks Lend to Small BusinessesSource:WSJ,1996%of Small Business LoansOutstanding Loans in 1995 Large Banks-$71.9 BillionSmall Banks-$212.3 BillionsSource:SBA,1996Early Financing StagesNo Revenues,No ProfitsSeed Expansion Late StageHigher RiskLower RiskConcept Development CommercializationInflows into US Venture Capital FundsSource:The Economist,2000Billions1995 Venture Capital Seed MoneySource:Business Week,1996$MillionsCommunicationsInformation&SoftwareDistributionProductsHealth CareU.S.Start-Up Venture Capital1st Quarter 2000Source:WSJ,2000Billions Venture Capital and the InternetSource:WSJ 1999BillionsIrreducibleUncertaintyInvestmentBhids Investment-Uncertainty-Profit Diagram Note:Size of Money Bag=Potential ProfitIrreducibleUncertaintyInvestmentPROMISING START-UPS:Microsoft BASIC for the Altair(1975)Sam Walton franchised variety store(1945)TRANSITIONAL INITITATIVES:Microsoft Excel for the Macintosh(1985)Wal-Mart distribution centers(1968-69)CORPORATEINITIATIVES:Microsoft Windows 95Wal-Mart JV inMexico(1991)Bhids Investment-Uncertainty-Profit Diagram Note:Size of Money Bag=Potential ProfitIrreducibleUncertaintyInvestmentDistribution of Significant InitiativesOpportunistic AdaptationRisk transfer/syndicationPersonal abilitiesResearch and planningUnderwriting other risksTeamworkNote:Size of Money Bag=Potential ProfitCORPORATEINITIATIVESPROMISINGSTART-UPSIrreducibleUncertaintyInvestmentFive Archetypal InitiativesMARGINAL BUSINESSESLawn care,hair salonPROMISING START-UPSHewlett-Packard(1948)EDS(1962)VC-BACKEDSTART-UPSIntel,Lotus,Compaq,Staples,GenentechCORPORATE INITIATIVESWindows 95,Pentium(Intel),Mach III(Gillette),Prozac(Lilly)REVOLUTIONARYVENTURES:Federal Express,Iridium(Motorola)Note:Size of Money Bag=Potential ProfitProfessional ManagementMajor Outside FinancingIrreducibleUncertaintyInvestmentStages of Funding2nd STAGE VCCisco(1987)BOOTSTRAPPEDSTART-UPSCisco(1984)VC-BACKEDSTART-UPSCompaq(1982)PUBLIC MARKETSCisco(1990)Compaq(1983)Note:Size of Money Bag=Potential ProfitProfessional ManagementMajor Outside FinancingIncrementalGoalsFirm Size and MaturityGoals-Audacious or Incremental AudaciousGoalsPROMISING START-UPSSurvivalCash FlowTRANSITIONAL INITITATIVESJustify InvestmentSecure ResourcesPromote CooperationCORPORATEINITIATIVESLimited by History and SizeFormalPlanningFirm Size and MaturityOpportunistic Adaptation or Formal Planning OpportunisticAdaptationPROMISING START-UPSExperimentationUnexpected SituationsLimited Planning ResourcesTRANSITIONAL INITITATIVESJustify Investment to OutsidersCORPORATE INITIATIVESSystematic ResearchPlanning Resources Compete for Corporate FundingFirm Size and MaturityRisks Faced by Top Decision-Makers PersonalRiskPROMISING START-UPSLow Initial CapitalFounders Time Founders ReputationTRANSITIONAL INITITATIVESFounders EquityPersonal GuaranteesCORPORATEINITIATIVESCorporate Risk Only One CEO Decision of Many
