Driving Investment to Emerging Enterprises
by Adam J. Kovitz
by Adam J. Kovitz
(originally published in The National Networker Weekly Newsletter)
In the current uncertainty of these economic times, entrepreneurship is just not sexy. If you're an entrepreneur, chances are you're not "too big to fail" and that you are working every angle you can to get funding for your emerging enterprise.
The problem with investing in such companies, classically, is that there is high risk due to limitations with liquidity, access to financial resources and management.
We at TNNWC believe such issues can be mitigated with such alternatives as our Emerging Enterprise Venture Capital and Specialized Financing and Credit Enhancement Programs, while taking advantage of the best of what entrepreneurial concerns have to offer. Shameless plugging aside, it is refreshing to see others adopting this as well as evidenced by a recent Wall Street Journal Article, "Betting on 'Entrepreneurial' Stocks", in which a Babson College Professor recently launched the EntrepreneurialShares Global Fund. This fund is comprised of several small to mid-sized companies that have gone public yet display "entrepreneurial tendencies".
The question, though, is "why are 'entrepreneurial tendencies' so important now?"
Growing dissatisfaction with bureaucracy - While bureaucracy has never been seen as anything positive, recent dissatisfaction with U.S. Congressional and Senatorial posturing and stalling tactics on key issues to resolve major issues such as the repeal of "Don't Ask, Don't Tell", extension of tax cuts, extension of unemployment benefits and the 9/11 First Responder Health Bill, are a huge source of frustration. In complete contrast, entrepreneurial concerns are focused on solving problems quickly and know how to avoid such red tape. In this regard, there is the perception of a "fast-track" to capital.
People are tired of waste - Unlike large corporations with multiple levels of middle management, large expense accounts and exorbitant bonuses (despite a troubled economy, poor housing market and high unemployment), emerging enterprises know how to stretch a dollar and run a "tight ship". They also know the value of money so resources are better utilized. Profits generated are the result of hard work and often go back into the company in the form of new equipment or new personnel.
I am encouraged by this rising tide of entrepreneurial spirit and hope that it provides some glimmer of light and joy to your own emerging enterprises this time of year. We believe that more investment in entrepreneurship will spawn new economic growth and development, unprecedented innovation and record levels of job creation.
From all of us at TNNWC, we wish for all of our members (who celebrate it) a Merry Christmas!
Next week: Stay tuned for 2010: The Year in Review!
All my best,
Adam
www.TNNWC.com
http://adamjkovitz.blogspot.com
Capital, Traffic Building, International Customers and unique SERVICES.
The National Networker Publications™ produced by TNNWC Group, LLC
Resources for Business Planning, Development, Capital and Growth
