With the advent of Liberalization, Privatization and Globalization (LPG) the Indian economy has witnessed a tremendous transformation. The Indian markets have taken leave of their closed nature and have become open and dynamic allowing free competition from global players. The winds of change are blowing over the global market and economy. With the process of the change, the approach of people is of more into entrepreneurship by showing the creativity and innovative ability to explore for the benefit of the society.
As and when we enter into the 21st century, we found there is an innumerable change in the world of Finance. The concept change has establish from the traditional accounting system to USGAAP to IFRS, limited investment scopes move to wider opportunity, and domestic investment to foreign direct investment and foreign institutional investments. The success of every organization depends upon how the organization is able to raise its required funds at the time of requirement. In India, many small entrepreneurs are coming with innovative ideas but they lack start up capital to convert their ideas into reality. In this paper an effort is made to bring a new source of finance to accept the timely change of entrepreneurship.
SOURCES OF FUNDS USED BY INDIAN PRIVATE SECTOR
Sources of funds for private corporate sector manufacturing firms in India, 1995- 96 through 2006-07 (Percentage shares)
|Item/year |1995-96 |1996-97 | |Angel investors |21 |4 | |Bank loans |22 |4 | |Family &friends |102 |17 | |Personal savings |409 |70 | |Personal credit cards |4 |1 | |Venture capitalists |9 |2 | |Not mentioned |21 |4 | |Total |588 |102 |
Sources of initial funding of National Entrepreneurship Network start ups source: National Entrepreneurship Network On line :http://www.nenonline.org/ Sources of additional funding of National Entrepreneurship Network start ups |Source |Total no |Percentage | |Angel investors |66 |11 | |Bank loans |45 |8 | |Family &friends |113 |19 | |Personal savings |234 |40 | |Personal credit cards |12 |2 | |Venture capitalists |48 |8 | |Not mentioned |70 |12 | |Total |588...