The present topic “managing small and medium sized businesses” is about the special parts of risk management and of financing small and medium sized enterprises. Therefore, an overview about risk management of SMEs will be demonstrated before the problems and objectives concerning financing matters. Thereafter, key terms and some sub areas of financing SME´s will be specified.
The first part comprises the objective and the problematic of this subject. Furthermore, we shall determine definitions of important terms as well as an illustration of important sections of this area. This paper will show how SME activities are enframed in the legal and economic perspective of the Federal Republic of Germany.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Subject Matter
- Objective
- Risk Management in SMEs
- Design of Risk Management
- Risk Management Process
- Financing of Small and Medium Sized Businesses
- Financing Instruments with Equity Capital Characteristics
- Equity Financing
- Flotation (Public Equity)
- Private Equity
- Venture Capital
- Equity Financing
- Financing Instruments with Debt Capital Characteristics
- House Bank Loan
- Leasing
- Factoring
- Bonds
- Mezzanine-Capital
- Public Financial Aids
- KfW-Starting Money
- KfW-Entrepreneur´s Credit
- KfW Entrepreneur's Capital
- Financing Instruments with Equity Capital Characteristics
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper explores the crucial aspects of risk management and financing within the context of small and medium-sized enterprises (SMEs). It examines the challenges and objectives related to managing risk and obtaining funding for SMEs. The paper delves into various financing instruments, highlighting alternative funding sources beyond traditional bank loans. Additionally, it analyzes public support programs designed to assist SMEs in their financial endeavors. Key themes addressed in this work include:- The importance of risk management for SMEs
- The need for alternative financing options for SMEs
- The role of public financial aids in supporting SMEs
- The challenges faced by SMEs in securing adequate funding
- The impact of regulatory changes on SME financing
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction
This chapter introduces the subject of managing small and medium-sized businesses, focusing on the specific areas of risk management and financing. It outlines the paper's objective and provides an overview of the key topics covered.Risk Management in SMEs
This chapter explores the significance of risk management for SMEs. It emphasizes the need for a comprehensive risk management system to address uncertainties in the market, particularly in sectors like commodity markets. The chapter discusses the role of management in implementing risk management practices and highlights the importance of identifying and evaluating potential risks.Financing of Small and Medium Sized Businesses
This chapter delves into the intricacies of financing SMEs, examining various instruments with equity capital characteristics, such as equity financing, private equity, and venture capital. It also explores financing instruments with debt capital characteristics, including house bank loans, leasing, factoring, and bonds. The chapter concludes with a discussion of mezzanine capital and public financial aids, highlighting programs like KfW-Starting Money, KfW-Entrepreneur´s Credit, and KfW Entrepreneur's Capital.Schlüsselwörter (Keywords)
This paper focuses on risk management, financing, small and medium-sized enterprises (SMEs), alternative financing instruments, public financial aids, equity financing, debt financing, venture capital, and the challenges of securing capital for SMEs. It examines the impact of regulatory changes on SME financing and explores various strategies for managing risks and accessing funding.- Quote paper
- Christopher Ganseforth (Author), 2012, Managing Small and Medium Sized Businesses, Munich, GRIN Verlag, https://www.grin.com/document/205863