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Ede Assignment No 7

This report analyzes various financial agencies that support entrepreneurs in establishing their businesses, highlighting the importance of financial planning and resources. It details government institutions, banking options, venture capital, crowdfunding platforms, and international financial institutions that provide essential funding and support. Understanding these resources can help entrepreneurs make informed decisions to ensure long-term business sustainability.

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19 views3 pages

Ede Assignment No 7

This report analyzes various financial agencies that support entrepreneurs in establishing their businesses, highlighting the importance of financial planning and resources. It details government institutions, banking options, venture capital, crowdfunding platforms, and international financial institutions that provide essential funding and support. Understanding these resources can help entrepreneurs make informed decisions to ensure long-term business sustainability.

Uploaded by

afzaalalvi380
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Assignment no.

Aim: -
The aim of this report is to compile and analyse information from various financial agencies
that provide support for entrepreneurs in setting up their business enterprises. By
understanding the financial resources available, businesses can effectively plan their funding
strategies and ensure long-term sustainability.

Introduction: -
Starting a business requires careful financial planning and support from various financial
agencies. These agencies provide capital, grants, subsidies, and advisory services essential
for setting up and sustaining a business. Understanding the roles, policies, and services of
these agencies can help entrepreneurs make informed financial decisions. This report compiles
information from various financial agencies that support new businesses.

1. Government Financial Institutions


a. Small Industries Development Bank of India (SIDBI)
• Provides financial assistance to small and medium enterprises (SMEs).
• Offers term loans, working capital, and refinancing options.
• Facilitates credit guarantee schemes for startups and MSMEs.
b. National Small Industries Corporation (NSIC)
• Offers credit support through financing schemes.
• Provides raw material assistance to businesses.
• Extends financial support under the Performance and Credit Rating Scheme.
c. Micro Units Development & Refinance Agency Ltd. (MUDRA)
• Provides loans under three categories: Shishu (up to INR 50,000), Kishor (INR 50,000 to INR
5 lakh), and Tarun (INR 5 lakh to INR 10 lakh).
• Encourages micro-businesses and self-employment.

2. Banking Institutions
a. Public Sector Banks (PSBs)
• Offer business loans with flexible repayment structures.
• Provide overdraft facilities, cash credit, and term loans.
• Support through government schemes like Stand-Up India and Start-Up India.
b. Private and Foreign Banks
• Offer tailored financial products for startups and enterprises.
• Provide investment banking services and business expansion loans.
c. Cooperative Banks
• Provide credit facilities to small business owners in rural and semi-urban areas.
• Offer lower interest rates compared to commercial banks.

3. Non-Banking Financial Companies (NBFCs)


• Provide business loans, equipment financing, and working capital loans.
• Less stringent eligibility criteria compared to traditional banks.
• Faster loan approval process for startups and SMEs.

4. Venture Capital and Angel Investors


a. Venture Capital (VC) Firms
• Invest in high-potential startups in exchange for equity.
• Provide mentorship, networking, and financial resources.
b. Angel Investors
• Individual investors who provide early-stage funding.
• Offer financial backing in return for equity or convertible debt.

5. Government Subsidies and Grants


• Startup India Seed Fund Scheme (SISFS): Provides seed funding up to INR 50 lakh for early-
stage startups.
• Credit Linked Capital Subsidy Scheme (CLCSS): Offers capital subsidies to MSMEs for
technological upgrades.
• Pradhan Mantri Employment Generation Programme (PMEGP): Provides financial
assistance to new entrepreneurs.

6. Crowdfunding Platforms
• Platforms like Kickstarter, Indiegogo, and Ketto enable businesses to raise funds from the
public.
• Investors contribute small amounts in exchange for rewards or equity.

7. International Financial Institutions


• World Bank and International Finance Corporation (IFC): Provide financial and technical
assistance to small businesses.
• Asian Development Bank (ADB): Supports startups and enterprises in emerging economies.

Conclusion: -
Financial agencies play a crucial role in helping entrepreneurs establish and grow their
businesses. By leveraging financial institutions, government schemes, and alternative funding
sources, business owners can secure the necessary capital to ensure sustainable growth.
Understanding and selecting the right financial support system can significantly impact a
business’s success.

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