More than ever, in today's highly competitive marketplace, combined with stringent bank lending requirements, it is next to impossible for a young, aspiring entrepreneur, to obtain funding for his or her business venture, especially as related to building projects. The report will detail how Micro Shareholders is an alternative for many young professionals because it provides alternative financing and therefore paves the way for these young professionals to become entrepreneurs. The term Micro Shareholders is a term used by the author, developed on a working model of financing used by family members and colleagues in Ankara, Turkey. The model therefore has a precedent, and in its more basic form, is modeled along the lines of a Cooperative, which is a recognized form of financial structure here in Canada.
Even at the best of economic times, young entrepreneurs are caught in a Catch-22: They require financing for projects, but are denied because they lack a portfolio of successful projects and a track record i.e. they need the experience in order to get the money. Conversely, the young people need the money to get the experience! Micro Shareholders provides an alternative working model which benefits both the individual shareholders who invest in a closely-held community pool of finds and the young entrepreneurs who have set out to execute reputable business ventures.
[...] Often, it is only shareholders with considerable blocks of stock that can force change and demand accountability. This is often facilitated if, and only if, various shareholding groups band together and have enough voting power. Additionally, in a Credit Union, the elected Board of Directors governs policies concerning interest rates and other matters The Micro Shareholders Alternative Micro Shareholders will purposely position itself as a community-based investment vehicle which constitutes mostly average middle class investors such as teachers and government employees. [...]
[...] Additionally, this model is highly unique and mutually beneficial as it provides an investment vehicle for community families on middle or lower incomes who would normally be unable to invest in many standard industry investment instruments Purpose The purpose of this Report is to ascertain the way in which Micro Shareholders will provide a viable alternative source of funding for young entrepreneurs who are shut out of conventional bank and non-bank lending programs. Additionally, the Report will demonstrate how micro shareholding can a working model for this target group, and can be applied in a number of marketplaces and across a range of industries Report Statement Clearly, more than ever, there is an urgent need for the Micro Shareholder model in order to facilitate financing for young entrepreneurs, and especially for those engaged in costly land development and real estate projects. [...]
[...] http://www.canadabusiness.ca/servlet/ContentServer?cid=1081945277255&pagenam e=CBSC_SK%2Fdisplay&lang=en&c=GuideFactSheet. Accessed 12 February 2009. “Business and employment co-operative.” Wikipedia. http://en.wikipedia.org/wiki/Business_and_employment_co-operative. Accessed 12 February 2009. “Credit Unions.” Wikipedia. http://en.wikipedia.org/wiki/Credit_union. Accessed 12 February 2009. “Business and [...]
[...] I believe it is the future alternative for many young entrepreneurs.”[11] 4.1 A Stress-Free Environment: Micro Shareholders also provides a relatively stress-free environment for the entrepreneur. Unlike in conventional financing, the entrepreneur is not subjected to stressful negotiations with Investors who demand an excessive amount of profits and considerable say in running the individual business A Timely and Straightforward Approval Process: The Micro Shareholders ensure a quick and straightforward application approval process, unlike that which exits with more conventional sources such ads banks, where the process can easily take up to a year. [...]
[...] It also provided the buyers of the homes the opportunity to get onto the property ladder, especially in a city where land and property prices are very much out of reach for the typical middle- class buyer Conclusion The Batikent Project demonstrates clearly that the Micro Shareholder model can work and can be applied on a global level. Especially in light of the recent economic chaos and the credit crisis, now more than ever, innovative models are required to fund ground-breaking projects and clear the way especially for young entrepreneurs. [...]
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