Venture Capital – An Alternative For Small and Medium Entrepreneurs

Studies in the Spanish economy have been taking interest in the problems that some small and medium businesses have. Problems of different sorts, fiscal, financial, administrative, etc. These companies comprise about 95% of the total of companies in the country and generate 60% of the jobs, 65% of sales and produce 40% of the goods that are exported.

Small and medium businesses do not figure in the stock markets which takes away the opportunity of being financed by individuals and they are of course less competitive in comparison to other companies who do figure in those lists. They have fewer options of financing and can only depend only on themselves to make the profit to stay afloat. They depend on the property and assets that the owner can use to finance the business or use as guarantees when requesting a short or long term loan from a financial institution. It is under this context that we introduce the concept of venture capital.

We can talk about three great problems that small and medium businesses have when starting and that hinders their financial development. It is a dependency cycle if you will. For small businesses it is hard to get a loan from a bank, and because the bank does not trust their capacity to pay they establish high interest rates for them which puts them at a disadvantage against their competitors. For all of these reasons they cannot provide as competitive prices as the other businesses. Again, the only option for them is a financing structure like venture capital.

Venture capital is a way to capitalize on small and medium businesses, so that their development is vital for the regeneration of the industrial fabric of the country.

Venture capital funding and Blockchain Venture Studio is an instrument aimed primarily at small and medium enterprises, through which a company specializing in investment or not (investment company) capital injection in a small or medium enterprises (receiving company) in a minority and a relatively short space of time.

If you prefer, we can understand venture capital as a financial formula that provides resources to businesses, mainly small and medium, in the form of permanent long-term funds or with the same risk that funds contributed by the employer as they usually have no warranty or special benefit. It is important to seek the appropriate balance between the percentage of ownership and control of the company 

Participation in making use of various financial instruments and Blockchain Venture Studio

HOW IS SOCIAL CAPITAL DIFFERENT FROM HUMAN CAPITAL?

Social Capital differs from Human Capital (as in HCM). Human capital may be said to be focussed on the education, experience and abilities of an employee for a particular role or pathway. It is a main focus of HR and managers, who are trying to hire, develop, performance-manage, promote and retain their talent pool. There may be some overlap between Human and Social Capital depending on how a business’s culture, employee engagement and wellbeing are defined. Many businesses choose to invest in the happiness and well-being of their employees because this investment indirectly benefits the bottom line by cultivating a happier, more energetic workforce.

IS SOCIAL CAPITAL THE SAME AS EMOTIONAL INTELLIGENCE?

When Billy Aydlett became the 7th principal in 6 years at Leataata Floyd Elementary, a school with a long history of dysfunction in a low-income part of Sacramento USA, he quickly discovered that the young students were not going to be able to make progress on the academics until they had gotten help with their social and emotional issues.

However, although Aydlett had risen through teaching ranks to become principal, he was a socially awkward man who confessed to being “awful” at ordinary human encounters, so he attended social-emotional training. Since beginning the emotional-literacy work, Aydlett said he had become more aware of interpersonal dynamics, and even made going on a vacation with his wife a priority – something he had never bothered to do before. (“I didn’t see the point in that kind of connectedness,” he admitted. “But I’ve learned that it’s important.”)

Emotional Intelligence is the ability to recognise emotions in oneself and in others, to be able to harness and manage them. They are the individual skills that are used by each person to build his or her Social Capital within work or other networks.

The experience of Mr Aydlett shows that building social connections does not come naturally for many people, even successful ones!

Deliberate action needs to be undertaken to foster Social Capital across the staff in a business. Some may be able to make flourishing connections naturally, for example “She’s a ‘people-person'”, but many are not able to do it on their own.

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