COMM 320 Lecture Notes - Lecture 10: Microcredit, Main Source, Financial Statement

• School: Concordia University
• Department: Commerce
• Course: COMM 320
• Professor: David De Koos

Document Summary

In some of the most impoverished regions, microfinancing is the main source for raising initial money. Micro funding: microfinancing is a powerful tool in reducing poverty, making it possible that wealth- creation, through entrepreneurship, is taking the way of wealth-substitution in the most impoverished areas, relies on personal trust and not collateral. Foolhardy: the entrepreneurs themselves provide 65. 8% the rest is most probably informal investors. Informal investors are usually made up by: close family and relatives of the entrepreneurs (49. 4%), other relatives (9. 4%), work colleagues (7. 9%), and strangers (6. 9%) friends and neighbors (26. 4%); Finding business angels: formal angel groups, pros: easy to find, cons: may charge for the privilege to present or submit a business plan; Limited number (several thousand: individual angels, pros: several hundred thousand available, cons: hard to find and approach; must identify prospects and present. Internet has modernized crowdfunding by connecting people in search of funds with the general public.