2. ENTERPRISE PROFILES
• Four (+1) ‘typical’ businesses
• based on real businesses somewhere in the world!
• Try to imagine…
• Their business needs dictate their funding needs
• The shape of the financial industry dictates how they
will be met.
• All businesses are going concerns capable of profits
• Will they be equally important in all scenarios?
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3. 1. The informal enterprise
http://www.lendwithcare.org/entrepreneurs/index/2629
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5. THE INFORMAL ENTREPRENEUR
• 0 salaried employees (family members involved)
• Has run a general store for the last 2 years
• Growth is slow due to physical constraints
• Needs funds for new stock, more products and
to begin expanding premises
• Risks: quality of management, competition,
customer income, natural disasters, crime,
compliance
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6. 2. The Disruptive Enterprise
http://www.didion.com/company.html
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8. THE DISRUPTIVE ENTERPRISE
• First financing round
• 0 salaried employees, 0 turnover
• Developed a new technology for
reclaiming and sorting scrap metal that
could revolutionise the industry
• Has built a prototype
• Technology needs testing, refinement,
patenting. Won’t sell for another year
• Risks: buyers, regulatory approval,
imitators
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9. THE DISRUPTIVE ENTERPRISE (II)
• Second financing round
• 45 salaried employees, growing rapidly
• New technology patented, in production
and profitable, sold in multiple countries
• Assets are mostly patents, licences, stock
• Needs to expand overseas
• Risks: imitators, regulatory policy
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10. 3. The steady-state family firm
http://www.dw.de/dw/article/0,,6385455,00.html
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12. THE STEADY STATE FAMILY FIRM
• 30 salaried employees, slow, steady growth
• Mid-range furniture manufacturer, owned by
same family for 100 years (3nd generation)
• Needs liquidity and to upgrade two key
pieces of machinery
• Risks: customer spending, dependence on
the owner-manager, governance,
compliance
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13. 4. The leading corporate
http://www.unilever.com/
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15. THE LEADING CORPORATE
• 200,000 employees, publicly listed
• 100 yrs old. Diverse portfolio of well known
consumer goods worldwide
• Share of consumer spending in most markets is
steady; growth concentrated in a few heavily
contested markets.
• Needs to acquire popular local brands &
advertise heavily in 10 promising new markets
• Risks: managing acquisitions, understanding
target markets, consumer spending, generics.
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