Business Development Companies ( Bdcs )

Finding the perfect capital structure in terms of risk and reward can ensure a company meets shareholder expectations and protects a firm in times of recession. Capital structure refers to how a business puts its money to “work”. The two forms of capital structure are equity capital and debt capital. Both have their benefits and limitations. Striking that perfect balance between the two can mean the difference between thriving versus trying to survive.

Many people want to live the “American Dream”, and what better way to do that than to start a small business. Small businesses are incredibly important to the United States economy. Small businesses have been around from the beginning of the history of the U.S. and remain a large portion of the business community today. Small businesses are the driving force for job creation. Small businesses struggle to meet regulations set in place by the government and at the same time stay afloat in the U.S. economy. There are strict size standards set in place that make small business owners weary of expanding the amount of people they employ. Small business owners also struggle with offering healthcare to their employees. Small businesses try to stay ahead by introducing new and unique products. In an ever-changing economy, it is important to understand the impact of small businesses in the United States.

In the last several years, as we have seen some of the major financial conglomerates collapse, when Wall Street carries some negative connotation, investors’ attention turns to the companies who work primarily with Main Street, specifically those folks who create capital and own assets. A lot of these businessess would not strike you as super wealthy, yet it is the small businesses that proved to be the most resilient during the hard economic times.

Small businesses are the backbone of national economy and play a leading role in innovations as well as in creating jobs. Small business has the intrinsic needs to growth. Obvious contributions of the growth of small businesses include the increased return on investment and job creation. The interesting and valuable question is how small business grows and are all small businesses growing? It is no surprise that the growth of business is a core topic both in organization theory and entrepreneurship, both are interested in the process and causes of business growth. Stages of growth models, which assume that business go through some distinct stages from birth to maturity, have been the most popular theoretical approach in academic to understand small business growth. Although the stages model of growth has been criticized for being too sequential and linear which is unrealistic and inconsistent with empirical evidence (e.g. Phelps et al., 2007; Levie and Lichtenstein 2010), various new stages models of business growth have been developed since the 1960s.

Small businesses are the core of the engine that runs the American economy. They are a very intricate and essential part of what makes America strong. Annually there were approximately 400,000 new small businesses started every year in the United States of America. Before the recession the normal business closure for companies in America were approximately 100,000 annually. This rate of exchange between new and closing businesses is known as “the birth and death rate of American companies”. After the recession the death rate of businesses in the United States has increase exponentially, growing from 100,000 companies a year to approximately 470,000 companies closing annually (Joseph, 2014). Most may think this is a result of the recession,

All of the following are factors that could have led them to go into business except

The purpose of this paper is to identify how different factors effect on the growth of small businesses. The growth of small businesses has been influenced by factors such as growth strategy, business forms, short and medium term goals, financing assistance, organizational structure and staffing needs, customers and promotion, and ethics and social responsibility. In this paper will to discuss how the different factors alter the advancement of small businesses.

During testimony to the Small Business Committee it was said that the cost exceeded what Congress ever intended and had outweighed the benefit expected to shareholders and management (Iliev, 2010). The growth of small business is a prominent national interest and an important part of the economy but the regulations are not able to protect investors and simultaneously encourage their growth (Castelluccio, 2005). Fortunately, there have been subsequent laws passed that reduce standards as well as offer opportunities for exemption to certain regulations which offers some relief but not

The United State Small Business Administration was established in 1953. It states in its mission statement that it is an independent agency of the federal government used to aid, counsel, assist and protect individual small business. The S.B.A. helps preserve free competitive enterprise, which in turn helps our national economy to continue to grow. The agency does this by offering numerous initiatives to help small business owners to start and be successful with their business. They provide online training courses, provide information on loans and grants, and provide information on local S.B.A. offices. Information is also provided for disaster assistance and also helps locate people for mentoring and support.

In today’s global market place economic stability may be challenging, especially for small business. As a resource there is assistance available through extensive networking and partnerships with both public and private organizations. SBA will assist, counsel, aid and protect small business in the United States, Puerto Rico, the U.S Virgin Islands and Guam with their concerns and interest. Therefore, the SBA aids Americans as they start, build and grow their business.

As for the U.S economy today, small business has the main roles to contribute significantly in a whole gross domestic product (GDP). In the purpose to motivate and encouraging small business performs efficiently, the U.S government provides a couple major resources, the Small Business Administration, and the SNBC as the guidelines to address business concerns and other matters related. According to entrepreneur.com, small business represents over 6 trillion dollars in total economy outputs, and account over 3% as a franchisee. (sba.com, 2004).

Capital structure is defined as the mix of the long-term sources of funds that a firm use. It is composed of equity, debt securities and affect long-term financing of the entity. It is made up by shareholder’s funds, long-term debt and preference share capital. The capital structure mostly focus on the proportions of debt and equity displayed in the company financial statements, especially in the balance sheet (Myers, 2001). The value of a firm can be calculated by the sum of the value of its firm’s debt and equity.

Small businesses are an integral part of the economy of any country. They employ many and act as an income source to governments. However, in comparison to the large enterprises, small businesses tend to be vulnerable to various economic activities and changes due to their nature in size. Over time, the economic factors have proved either a challenge or a boost to the growth and expansion of these businesses. Among the various economic activities that affect various businesses is the economic slowdown and government legislation. An Economic slowdown can result in grave consequences for long-term businesses whereas government legislations can either create a new market sector or close down existing sectors. Economic factors have a massive impact on how small businesses operate and tend to dictate their success or failure.

Section III, Background section, and section IV, Technical section contain the core of this report. Background section gives you the definitions of debt and equity and how to divide them into different types. This section also shows you some examples of mix structure capital which is the mixture of debt and equity. Technical section discusses in detail about debt financing and equity financing, their definitions, their sources, and how good or how bad they impact on your business. The end of this section which focuses on mixture of debt financing and equity financing makes clear the reasons why virtually all companies choose this structure to finance themselves with, the factors that affect on ratio of the mixture, and a little professional understanding about optimal level of mix structure. The last section, known as Conclusion, will summarize the key points of the report.

The Small and Medium Enterprise Corporation Malaysia (SME Corp. Malaysia) was formerly known as Small and Medium Industries Development Corporation (SMIDEC). It is an agency under the Ministry of International Trade and Industry (MITI).