Sources of business financing. Fundamentals of Internal and External Business Financing

The purpose of the article is to give a clear and visual idea of \u200b\u200bwhere to get money to start a business or further develop a business.

The enterprise has three basic sources of financing (lending) for its business development plans and the resulting needs for cash resources (see Fig. 1).

Retained earnings

As a rule, only mature and successful (large) enterprises have retained earnings in sufficient quantities. Small and medium-sized businesses, especially at the stage of intensive development of their business, have it only on paper (business plan).

External financing

Here it is - a field for choice and action. A large number of participants and instruments make the financial resources market truly diverse. There are a lot of choices (in theory): various forms of both foreign investment, and public investment (support for small businesses, the development of industrial enterprises, and so on), and private investment, and a variety of loans in banks (which are mostly reduced to as a result, to lending against collateral) and more. To understand all this market splendor, let's look at who finances (investments, loans) and what financial instruments are used.

Major participants in the financial resources market

We represent the system of participants graphically (see Fig. 2).

Let's give a short comment on the figure above.

Source Members / Lenders / Banks

The main provider of business and other loans.

Source Participants / Lenders / Leasing Companies

Professional provider of leasing services.

Source Participants / Lenders / Government

Additional, "rare, but apt", supplier of business and other loans, as well as subsidies.

Source participants / investors / investment companies

Professional "supplier" of investments, function - investment activities (investment management).

Source Participants / Investors / Non-Professional Investors

Individuals and legal entities (private and corporate investors), which are not investment companies, but invest financial resources in certain investment projects.

Source Participants / Investors / Venture Funds

Investment companies that make financial and other investments in investment projects with medium and high risk levels and corresponding profitability.

Source participants / investors / insurance companies

An additional indirect "provider" of investments.

Source Participants / Investors / Government

Supplier of long-term investments for investment projects, as a rule, of a strategic scale (infrastructure and others).

We briefly figured out the main participants in the financial resources market - sources of investment. Now let's see what financial instruments you can use to finance (lend) your business development plans and the resulting cash needs (see Figure 3).

The main instruments of the financial resources market

Let's briefly characterize the elements shown in the figure above.

Instruments / credits

There are many types of loans. In the vast majority of cases, loans are given against collateral (current assets of the company, acquired property, and so on). You do not share direct management powers with anyone, but, in fact, the bank becomes such a business partner, on which not only the prospects of your organization depend, but sometimes the very possibility of its existence (especially important for industrial enterprises).

Instruments / investments

Instruments / leasing

Long term lease (property, production equipment, etc.). Under certain conditions, leasing can give tax incentives to both the person who leases the property and the person who leases it.

Instruments / subsidies

One-time "help" in kind or in cash. They can be direct or indirect. For example, a decrease in the tax burden with the participation of, say, small and medium-sized businesses in the entrepreneurship support program, or a decrease in the interest rate on loans (the so-called concessional lending).

Causes of conflicts between founders of joint business

One head is good and two is a joint venture. (Smart and reliable) partner in small and medium business is priceless. Finding a partner is much more difficult than losing one. Nevertheless, the parting of the co-founders of the enterprises happens all the time. Let's figure out what are the causes of conflicts between business partners.

How to turn joint activities into strategic partnerships

We figured out the reasons for the conflicts between the co-founders of small and medium-sized businesses. It's time to move on to the essentials: how to ensure the effectiveness of the joint venture in the long term, how to reduce the number of sharp edges in relationships between business partners, how to turn joint activities into strategic partnerships.

The procedure for obtaining a loan for small and medium-sized businesses in Russia

How to get a loan to start a business or further develop a business, for what purposes do banks give loans, what problems can you face if you want to take money on credit (cash loan)? Let's figure out how the system of bank lending to small and medium-sized businesses in Russia works in practice.

Analysis of the external environment or validation of a business idea.

You have the desire and will to start your own business, moreover, you already have a business idea. It's time to make a preliminary assessment of the business and understand how consistent the overall concept of your project, called "start your own business", is. To do this, you need to understand in what conditions of the external environment your new business will operate and how to effectively integrate your business idea into these conditions.

Business sale algorithm

Selling a ready-made business always follows the algorithm: determining the market price of the business, pre-sale preparation, creating a detailed description, finding a buyer and making a deal. Read more about the Selling Business algorithm in this article.

Buy a ready-made business or start from scratch?

Do you have the desire and financial resources to invest in a suitable investment project? Perhaps it's time to start thinking about starting a new venture. Or are you interested in buying a ready-made business? Buy a production or buy a service business? Let's weigh the alternatives: buy a ready-made business or start from scratch.

Algorithm for buying a business

Buying a ready-made business, like selling it, is also carried out according to the algorithm. Compliance with it will allow you to buy a business without the risk of being disappointed later. It is obligatory to maintain a comparative list of enterprises and their detailed verification.

Investment memorandum

Direct investments that a private investor is ready to direct for the development of an enterprise or its purchase require the owner of the enterprise to have an investment memorandum. Consequently, the memorandum is a tool for selling a business for the owner and characterizes the investment attractiveness of the project for the investor.

Investment algorithm

You are a private investor and you have a desire to engage in investment activities. Practice shows that direct investment in Russia works in the same way as in the rest of the world. Let's consider the algorithm for investing in an enterprise in more detail.

Differences in selling business in Russia and in the West

Until recently, in Russia, the concept of "business sale" meant something abstract. However, in recent years the situation is approaching Western countries, where millions of enterprises change their owners every year. Let's talk about the differences in selling business in Russia and in the West.

undergraduate

Butrina Yulia Vladimirovna, Candidate of Economic Sciences, Associate Professor, South Ural State University, Chelyabinsk

Annotation:

This article analyzes the sources of financing for small and medium-sized businesses in Russia. The relevance of this article is due to the fact that the development of small business is an important condition for the stability of the economy, full-fledged market relations. The article examines various sources of financing for small and medium-sized businesses, examines in detail the conditions for the provision of material assistance.

This article analyzes the sources of financing for small and medium business in Russia. It is very relevant article due to the fact that the development of small businesses is an essential condition for economic stability, full-fledged market economy. The article describes the various sources of financing to small and medium-sized entrepreneurship, studied in detail the conditions for granting financial assistance.

Keywords:

sources of financing for small and medium-sized businesses; appropriations from the state budget; lending; leasing.

sources of financing small and medium-sized businesses; public budgets; loans and leasing.

UDC 33

The relevance of this article lies in the fact that the development of small business is an important condition for the stability of the economy, full-fledged market relations. Currently, small businesses have enormous potential to make a leap forward in order to boost the Russian economy. Providing employment for the population, filling the consumer market with goods, creating the necessary level of competition, forming a middle class - these tasks are performed by small business. But there are a lot of difficulties in the process of creating and developing small businesses. One of the most important problems is the lack of funds.

Starting capital is required to create a small or medium-sized business. Not having a certain amount of money for the acquisition of fixed assets or capital investments, it is necessary to consider the following options for financing the project:

Table 1 - Comparative analysis of methods of financing an investment project

Comparison criteria	Project financing methods - purchase of fixed assets
Comparison criteria	allocations from budgets of different levels	attraction of a bank loan	leasing
Source of financing	Municipal, regional and federal budget of the Russian Federation	Bank loan up to 100% of the equipment cost	Own and borrowed funds of the leasing company
Financing terms	Lump sum	From 1 to 3 years (depends on the type of equipment and the borrower's credit history)	1 to 7 years old (depends on the type of property and the period of its useful use)
Terms of payment		Repayment of the "body" of the loan in tranches during the term of the agreement	Monthly payments for the entire term of the lease agreement (deferral of the first payment is possible)
Funding Method Cost	Payment to the city budget of at least 50% of the total amount of taxes and other obligatory payments to the budgets of the budgetary system of the Russian Federation during the period of validity of the agreement on the provision of subsidies	Loan interest + various commissions	General appreciation of property for the term of the lease agreement, referred to the value of property
Sources of repayment of attracted funds		Depreciation deductions, net profit	Working capital
Additional requirements related to the method of financing	1. Absence of arrears in payment of taxes, fees and other obligatory payments to the budgets of the budgetary system of the Russian Federation on the day of filing the Application. 2. Absence of liquidation or bankruptcy procedures in respect of the SME entity on the day of filing the Application. 3. Absence of suspension of the activity of the SME entity in the manner prescribed by the Code of Administrative Offenses of the Russian Federation on the day of filing the Application. 4. Absence of violations by the SME entity of contractual obligations secured at the expense of the city budget on the day of filing the Application. 5. Absence of unfinished contracts for the provision of subsidies from the city budget on the day of submitting the Application. 6. The period from the date of state registration of an enterprise does not exceed two years.	Bank requirements for the provision of guarantees, sureties, justification of the effectiveness of the project and calculation of payback. Opening a bank account and maintaining the set turnovers on the account	Possibility of monthly accumulation of funds to ensure lease payments
Additional guarantees for return on investment		Obligatory provision of surety, pledge of liquid property, partial advance payment for project financing from own funds	The pledge is the property itself, leased, is owned by the lessor until the terms of the contract are fully fulfilled. Advance payment under a lease agreement up to 30% of the property value
disadvantages	1. Subsidies are provided in the amount of not more than 50% of the total costs of the SME entity for the implementation of the Project, determined by the amount of both actually declared and documented costs, and the planned amount of costs provided for by the estimate of the Project and justified in the business plan of the Project. 2. A large list of applicants. 3. Long term for consideration of the Application (10 working days) in comparison with a bank loan (2 hours).	The ratio of own and borrowed funds changes (increased share of borrowed funds in current liabilities)	It is not profitable for small transactions, for low-profit businesses, for enterprises using a simplified taxation system.
Benefits	1. Gratuitous provision of funds. 2. No pledge, surety, guarantee is required.	1. Possibility of reducing income tax by attributing interest on the loan to the prime cost in the amount of the refinancing rate. 2. In some cases it is cheaper than leasing.	1. The possibility of using accelerated depreciation. 2. Reallocated in time payment of income tax due to accelerated depreciation. 3. Savings in property tax payments due to accelerated depreciation. 4. Lease payments in full reduce the taxable base for income tax. 5. Leasing obligations do not affect the ratio of own and borrowed funds 6. The term of the lease agreement is comparable to the amortization period of the property.

After examining Table 1, we can conclude that each of the proposed financing methods has its own disadvantages and advantages, so it is necessary to consider them using more specific examples.

The development of small and medium-sized businesses, as the main source of employment for the population and increasing their social well-being, is given increased attention by the Government of the Russian Federation. State aid to small and medium-sized businesses is seen as a form of government investment in ensuring sustainable socio-economic growth. Financial support for small businesses comes from different levels of government.

At the federal level, in accordance with the law "On the development of small and medium-sized businesses in the Russian Federation" dated July 23, 2013 No. 238-FZ, a program "Economic development and innovative economy" was created. Within the framework of the subprogram "Development of small and medium-sized businesses" - the distribution and provision of subsidies from the federal budget to the budgets of the constituent entities of the Russian Federation for state support of small and medium-sized businesses. The purpose of this subprogram is to increase the number of small and medium-sized businesses in the Russian economy. Allocations from the federal budget for the implementation of the subprogram are: for 2013 - 1,985,041.8 thousand rubles, for 2014 - 21,569,755.1 thousand rubles. Expected results: an increase in the number of small and medium-sized businesses (including individual entrepreneurs) per 1,000 people of the population of the Russian Federation from 42.2 units in 2012 to 52.7 units in 2020; the total number of recipients of state support by 2020 will not less than 1,650,000 units; the total number of newly created jobs in the small and medium-sized enterprise sector by 2020 at least 980,000 jobs.

The dynamic and structural parameters of the further development of small business largely depend on the timely response of the authorities to the changing situation in the regional economy. Of particular importance in creating a favorable environment is the development of a regional program for the support and development of small business.

In accordance with the law of the Chelyabinsk region of March 27, 2008 No. 250 ZO "On the development of small and medium-sized businesses in the Chelyabinsk region", the regional target program "Development of small and medium-sized businesses in the Chelyabinsk region for 2012-2014" was approved. The purpose of this program is:

Increase in the number of small and medium-sized businesses per 1,000 people in 2013 - up to 45.5 units, in 2014 - up to 46.7 units;

Increase in the share of small and medium-sized enterprises turnover in the total turnover of organizations in 2013 - up to 26.3 percent, in 2014 - up to 27.2 percent;

Increase in the output of goods (performance of work, provision of services) by small and medium-sized businesses - recipients of support for one ruble of invested budget funds in 2013 - up to 130.1 rubles, in 2014 - up to 131.5 rubles.

In 2013, within the framework of regional programs, more than 260 million rubles were allocated for the development and support of entrepreneurship, including about 190 million rubles of federal funds were attracted.

In the Strategy for the development of the city of Chelyabinsk until 2020, the development of small and medium-sized businesses is determined by the “point of growth” of the city's economy.

Small and medium-sized business acquires particular importance in the conditions of economic instability (crisis phenomena) observed today, since it is a dynamic form of business that quickly adapts to changing conditions.

In accordance with the Federal Law "On General Principles of Organization of Local Self-Government in the Russian Federation" (dated 06.10.2003, No. 131-FZ) and the Federal Law "On the Development of Small and Medium-Sized Businesses in the Russian Federation" (dated 24.07.2007, No. 209- Federal Law), the administration of the city of Chelyabinsk approved the municipal program "Assistance to the development of small and medium-sized businesses in the city of Chelyabinsk in 2013-2016."

The total amount of funds for the implementation of the Program is 34,261.87 thousand rubles, including: funds from the budget of the city of Chelyabinsk - 26,761.87 thousand rubles, federal budget funds - 7,500 thousand rubles.

As a result of the implementation of the Program, the estimated number of small and medium-sized businesses that received financial support is: 2013 - 55 entities, 2014 - 38 entities, 2015 - 40 entities, 2016 - 40 entities.

Theoretically, there are many government programs to support small and medium-sized businesses, but as practice shows, it is practically impossible to receive substantial gratuitous financial assistance from the government. The entrepreneur has no choice but to apply to the bank in order to obtain a loan.

Today 804 banks operate in the Russian Federation. Most of them are engaged in lending to small businesses, however, the conditions for issuing a loan are different for everyone. Table 2 shows some of the banks operating in Chelyabinsk that offer loans to small businesses.

Table 2 - Analysis of bank lending programs for small and medium-sized businesses in Chelyabinsk

Loan parameters	Name of the bank
Loan parameters	Sberbank	Ural Bank for Reconstruction and Development
Purpose of the loan	Loan to start your own business from scratch	Replenishment of working capital (purchase of inventory items)	Financing of cyclical production processes, obtaining seasonal and trade discounts for large volumes of purchases, replenishment of working capital.	Purchase of inventories, replenishment of working capital, purchase / repair of equipment, vehicles and other fixed assets for business purposes, payment for services related to the implementation of entrepreneurial activities.
Credit amount	From 100,000 to 3,000,000 rubles	From 300,000 to 30,000,000 rubles	From 4,000,000 rubles	From 500,000 rubles to 2,000,000 rubles. If there is a positive credit history of the Client, OJSC AK BARS BANK may increase the maximum loan amount up to 3,000,000 rubles
Loan maturity		6 months to 1 year		3 months to 3 years
Loan rate
Material security	Pledge of property acquired within the framework of the project	Real estate, equipment, vehicles	Goods in circulation, equipment, transport, real estate, third party collateral. Possibility not to provide collateral up to 15% of the loan amount.	The ability to get a loan without collateral
Surety	1.Surety of the Bank's Partner 2. Surety of an individual	The actual owners of the loaned business, who can have a significant impact on the activities of the business and / or founders	Small Business Support Fund
Business life		At least 6 months	At least 6 months	At least 6 months (at least 12 months if there is seasonality in the business)
Borrower requirements	Borrower age: from 20 to 60 years old inclusive. After receiving loan approval from the Bank, the client needs to register as an Individual Entrepreneur or Limited Liability Company. Absence of current business activity within the last 90 calendar days.	The borrower's age is from 21 to 65 years (up to 60 years for women). Legal entity, individual entrepreneur - residents of the Russian Federation. The volume of proceeds of an enterprise (group of enterprises) in trade and other industries, except for production, does not exceed 700 million rubles per year (excluding VAT). The value of the property of an enterprise (group of enterprises) in the sphere of production on the balance sheet, according to official reporting data, does not exceed 60 million rubles.		Legal entities with an annual revenue of the group of companies up to RUB 400 million (excluding VAT). Individual entrepreneurs without forming a legal entity with an annual revenue for the group of companies up to 400 million rubles (excluding VAT).

Based on the information given in Table 2, we note that it is possible to get a loan for starting a small business from scratch only in Sberbank, and the interest rate is significant 18.5%, and its maturity should not exceed five years. Depending on the size of the borrowed funds, it is possible for novice entrepreneurs to repay such a loan, but it is very difficult. In other considered banks, interest rates are lower, but the maturity of the loan is reduced significantly.

If a small business has been successfully created by an entrepreneur, but financial resources are not enough to buy equipment, then he can contact a leasing company. The conditions for obtaining equipment from some leasing companies are currently described in Table 3.

Table 3 - Comparative analysis of the requirements put forward by leasing companies for the creators of small and medium-sized businesses

Criteria	Leasing company name
Criteria	SME Leasing	KMLK "Otkrytie"	Absolut Bank
Funding amount	From 150,000 to 60,000,000 rubles	From 1,000,000 rubles	10,000,000 to 100,000,000 rubles
Leasing subject	Machine tools, equipment, vehicles, railway cars. Equipment for the food industry (bakeries, restaurants and cafes), for the agro-industrial complex (for dairy processing, for growing broilers, vegetable storage). Freight transport for manufacturing and transport companies, including construction and mining companies. Buses, energy / energy efficient complexes.	New equipment, vehicles, special equipment	Automobile and railway transport, special equipment, self-propelled vehicles and equipment
			Not less than 20% for road and rail transport, special equipment, self-propelled vehicles. Not less than 40% - for commercial equipment
Lease term			Up to 60 months - for equipment and rail transport. Up to 36 months - for road transport, special equipment and self-propelled vehicles. But no more than the depreciation period of the property
Increase in price per year
Duration of the actual activity of the company	At least 1 year	At least 3 years	At least 18 months
Requirements for the lessee	Basic: isa small and medium-sized business entity with the legal form of LLC, OJSC, CJSC. Revenue for the last year is no more than 1 billion rubles, the number of employees is no more than 250 people, no losses for the last reporting period. The share in the authorized capital of state-owned companies, non-residents, large organizations is not more than 25%. Positive credit history of the company. Availability of a business plan for the use of technology. Additional: in Certain projects may require guarantees (from another company or personal) and guarantees (from regional funds to support SMEs) to ensure security.	Organizational and legal form - JSC, JSC, LLC. The taxation system is usual. The amount of proceeds for the last reporting year is at least 100 million rubles. The size of non-current assets as of the last reporting date is at least 20 million rubles. Positive equity during the year at all reporting dates. The activity must be profitable throughout the year at all reporting dates. Absence of overdue debts on taxes, fees and loans. Positive credit history. The size of current loans does not exceed 40% of annual revenue.	The Lessee operates in the city / region of presence of Absolut Bank or in regions adjacent to the Moscow region. An individual entrepreneur requires life and health insurance for the amount of a loan issued by an insurance company accredited by the Bank no later than 15 days from the date of signing the acceptance certificate for the transfer of the leased asset

Judging by the proposed Table 3, only an enterprise that is engaged in a fairly profitable activity can lease equipment, since one of the requirements is to receive at least 100 million rubles in revenue over the last year. Entrepreneurs who have just created a small business do not have the opportunity to use the services of leasing companies, since the period of the company's actual activity must be at least a year.

As of October 1, 2013, 234.5 thousand small enterprises were registered in Russia, which is 1.5% less than as of October 1, 2012. The number of small businesses per 100 thousand inhabitants decreased by 2.8 units and amounted to 163.6 units.

Despite the sufficient number of sources of financing for small businesses, the conditions for the provision of material resources are quite serious. In order for a small business to receive a state subsidy, it is necessary to pass a strict competitive selection, and the amount of funds provided is not always enough for business development, and creating it from scratch is simply impossible. In order to meet the requirements of the leasing companies, the small business owner needs to be very profitable. The most optimal option for newly organized small businesses is to obtain a bank loan under a small business support program. Requirements put forward to the borrower are quite feasible. The amount of borrowed funds is sufficient for the development of small business. The number of functioning banks gives the borrower the right to choose the most suitable conditions for him.

Bibliography:

1. Federal law "On the development of small and medium-sized businesses in the Russian Federation" of 23.07.2013, No. 238-FZ - Legal System Garant, 2009.
2. Regional law of the Chelyabinsk region of March 27, 2008 No. 250-ZO "On the development of small and medium-sized businesses in the Chelyabinsk region" - Legal System Garant, 2009.
3. Federal Law "On the General Principles of Organization of Local Self-Government in the Russian Federation" dated 06.10.2003, No. 131-FZ - Legal System Garant, 2009.
4. smb.gov.ru/statistics/officialdata - Official statistics - Federal portal of small and medium business. Ministry of Economic Development of the Russian Federation.

Reviews:

15.12.2014, 20:19 Demchuk Natalia Ivanovna
Review: the article is very relevant, but the author uses phrases that do not correspond to the scientific style of research, the tables are very voluminous and their names are not informative, stylistic points need to be finalized. Recommended for publication after revision

12/16/2014 11:23 PM Reply to the author's review Yukaeva Nina Olegovna:
Thanks for the review! Made all the amendments. As for the voluminous tables, this is necessary for a detailed study of the requirements put forward to the borrower or lessee.

17.12.2014, 9:53 Isaeva Jamilya Gamzatovna
Review: Review of the article by Yukayeva Nina Olegovna "Analysis of sources of financing for small and medium-sized businesses in Russia" The article is very relevant. The author considers only external sources of funding, it is necessary to add your own. The article is written sequentially. The proposed methods can be used by enterprises. The article is recommended for publication, taking into account the comments. Reviewer Ph.D., Assoc. Isaeva D.G.

12/17/2014 10:22 PM Reply to the author's review Nina Yukaeva:
Thanks for the review! I believe that external sources of financing are more relevant for small businesses. But your remark takes place. In order for the content of the article to correspond to its title, the title of the article will be amended.

27.12.2014, 15:32 Chernova Olga Anatolievna
Review: The article is recommended for publication.

Summary

Classification of types and sources of financing for small and medium-sized businesses. General principles of providing financial support to small and medium-sized businesses. Concessional lending to small and medium-sized businesses. Credit risks. Credit unions. Leasing. Franchising. Venture funding. Microfinance.

Learning objectives

Within the framework of this topic, trainees develop: understanding of the basic principles of financial support for small and medium-sized businesses; knowledge of organizations that finance small and medium-sized businesses.

CLASSIFICATION OF TYPES AND SOURCES OF FINANCING OF SMALL AND MEDIUM ENTREPRENEURSHIP

Finance is a generalizing economic term meaning both monetary funds, financial resources considered in their creation and movement, distribution and redistribution, use, and economic relations due to mutual settlements between economic entities, the movement of funds, money circulation, use of money 1 ...

Financing is the process of forming the capital of a company in all its forms, providing cash (cash support) for the needs of expanded reproduction.

It should be noted that the concept of "financing" is closely related to the concept of "investment". However, they are not the same. If financing is the formation of funds, then investing is their use (investment). Both concepts are interrelated, but the first precedes the second.

The classification of types of financing can be carried out on several grounds.

1. Depending on the source of receipt of funds, financing is:
- internal - the formation of financial resources in the process of economic activity of the organization. Internal sources of financing include profits, including non-operating income minus expenses for their implementation, depreciation deductions, funds from insurance activities, etc .;
- external means receiving gratuitous financial assistance from budgetary and extra-budgetary sources, attracting bank and non-bank loans, etc. External sources of funding, in turn, are subdivided into budgetary and extrabudgetary.
2. Depending on the subject of financing:
- self-financing;
- state;
- banking;
- cooperative;
- partnership, etc.
3. Depending on the method of financing:
- direct - providing a loan, gratuitous financial assistance, etc .;
- indirect - the transfer of funds occurs indirectly, through certain operations (for example, leasing, franchising, guarantees, etc.).

The above types of funding have corresponding sources.

1. Self-financing:
- accumulated capitalized profit (at the expense of the company's development fund);
- accumulated depreciation fund and current depreciation charges;
- a reserve fund to cover temporary current losses planned for the period preceding the enterprise reaching the design indicators of output and sales volumes;
- authorized capital (if it exceeds the current standard for maintaining a certain amount of the authorized capital).
2. Borrowed funds:
- bank loans;
- funds received from the placement of the company's bonds on the exchange or over-the-counter stock markets;
- commercial credit of suppliers of material resources (stocks of raw materials, semi-finished products, components, services of contractors, etc.) when purchasing them in installments or with a deferred payment;
- leasing.
3. Raised funds:
- from shareholders - founders (participants) and those who purchased shares of previous additional issues (share issues);
- from the placement on the stock market of new share issues;
- franchising.
4. Other mixed or unconventional sources of funding:
- issue and placement of convertible shares and bonds;
- innovative loan;
- obtaining forward contracts for the supply of developed products with a significantly delayed delivery time and in the presence of advance payments from the customer.

Any small business in order to carry out its economic activities needs financial resources either in the form of debt or in the form of equity capital. External and internal funding is allocated depending on the source (Fig. 1).

Figure: 1.

Sources of own funds are:

· Authorized capital (funds from the sale of shares and share contributions of participants);

· Reserves accumulated by the enterprise;

· Other contributions of legal entities and individuals (targeted funding, donations, charitable contributions, etc.).

The main sources of funds raised include:

· Bank loans;

· borrowed funds;

· Funds from the sale of bonds and other securities;

· accounts payable.

The fundamental difference between the sources of own and borrowed funds lies in the legal reason - in the event of liquidation of an enterprise, its owners have the right to that part of the enterprise's property that will remain after settlements with third parties.

The main sources of financing are own funds. Let us give a brief description of these sources.

The authorized capital is the amount of funds provided by the owners to ensure the statutory activities of the enterprise. The content of the “authorized capital” category depends on the organizational and legal form of the enterprise:

· For a state enterprise - the cost estimate of the property assigned by the state to the enterprise on the basis of full economic control;

· For a limited liability partnership - the sum of the owners' shares;

· For a joint stock company - the aggregate par value of shares of all types;

· For a production cooperative - a cost estimate of the property provided by the participants for conducting activities;

· For a leased enterprise - the amount of contributions of the enterprise employees;

· For an enterprise of a different form, allocated to an independent balance sheet, - the cost estimate of the property assigned by its owner to the enterprise on the right of full economic management.

When creating an enterprise, contributions to its authorized capital can be monetary funds, tangible and intangible assets. At the time of the transfer of assets in the form of a contribution to the authorized capital, the ownership right to them is transferred to the economic entity, that is, investors lose their property rights to these objects. Thus, in the event of the liquidation of the enterprise or the withdrawal of a participant from the company or partnership, he has the right only to compensation for his share within the residual property, but not to return the objects transferred to him in due time as a contribution to the authorized capital. The authorized capital, therefore, reflects the amount of the enterprise's obligations to investors.

The authorized capital is formed upon initial investment of funds. Its value is announced during the registration of the enterprise, and any adjustments to the amount of the authorized capital (additional issue of shares, reduction of the par value of shares, making additional contributions, admitting a new participant, joining part of the profit, etc.) are allowed only in cases and in the manner provided for by the current legislation and constituent documents.

The formation of the authorized capital may be accompanied by the formation of an additional source of funds - share premium. This source arises when, during the initial issue, shares are sold at a price above par. Upon receipt of these amounts, they are credited to the additional capital.

Profit is the main source of funds for a dynamically developing company. In the balance sheet, it is present explicitly as retained earnings, and also in a veiled form - as funds and reserves created at the expense of profit. In a market economy, the amount of profit depends on many factors, the main of which is the ratio of income and expenses. At the same time, the current regulatory documents provide for the possibility of certain regulation of profits by the management of the enterprise. These regulatory procedures include:

· Varying the boundary of the classification of assets to fixed assets;

· Accelerated depreciation of fixed assets;

· The applied method of depreciation of low-value and fast-wearing items;

· The procedure for assessment and amortization of intangible assets;

· The procedure for assessing the contributions of participants to the authorized capital;

· Selection of a method for assessing production stocks;

· The procedure for accounting for interest on bank loans used to finance capital investments;

· The procedure for creating a reserve for doubtful debts;

· The procedure for attributing certain types of expenses to the cost of goods sold;

· The composition of overhead costs and the method of their distribution.

Profit is the main source of formation of the reserve capital (fund). This capital is intended to compensate for unforeseen losses and possible losses from economic activities, that is, it is insurance in nature. The procedure for the formation of the reserve capital is determined by the normative documents governing the activities of an enterprise of this type, as well as by its statutory documents.

Additional capital as a source of funds for the enterprise is formed, as a rule, as a result of the revaluation of fixed assets and other material values. Regulatory documents prohibit its use for consumption.

A specific source of funds is special purpose funds and targeted financing: gratuitously received values, as well as irrevocable and repayable state appropriations for financing non-production activities related to the maintenance of social, cultural and communal facilities, for financing the costs of restoring the solvency of enterprises located in full budget financing, etc.

Comparison of various methods of financing allows an enterprise to choose the most optimal option for financial support for operating activities and capital expenditures. It should also be noted that the development of the long-term credit market in Russia is possible only if the economic system is stabilized, i.e. overcoming the decline in production, reducing the growth rate of inflation (up to 3-5% per year), reducing the discount rate of the bank interest to 15-20% per annum, eliminating a significant budget deficit.

The most common external source of finance is loans to small businesses.

Lending to small businesses, as a rule, is handled by credit organizations - banks, as well as specialized financial organizations. It is clear that loans for small businesses are dominant among all sources of financing, since banks are the main holders of funds. For enterprises, or as they say, for enterprises of the real sector of the economy, money is exclusively a means of the entrepreneurial process and is constantly in motion. Banks, on the contrary, consolidate funds, so a bank is one of the main financial institutions where you can take money for organizing and developing your business for a long time. entrepreneurship financial business loan

Although small business lending is dominant among all sources of external financing, in reality it is very difficult to get a loan for small business. Despite the fact that recently there have been proposals for small businesses - a loan in one day, the real state of affairs with small business lending leaves much to be desired.

The main reason for this is that banks view small businesses as the most risky and vulnerable. Moreover, small businesses, as a rule, are in no hurry to show their capitalization, therefore, banks, realizing this, believe that small businesses are short-lived and, accordingly, not reliable as a client for lending. Because of this, banks have special requirements for obtaining loans for small businesses.

State budgetary educational institution of higher professional education "Siberian State Medical University" of the Ministry of Health

Russian Federation

Faculty of Pharmacy

Department of Management and Economics of Pharmacy

on the topic: The main sources of financing for small (individual) entrepreneurship

Eremeeva M.N.

Tomsk - 2014

Introduction

Entrepreneurial activity - according to the civil legislation of the Russian Federation, an independent activity carried out at its own risk aimed at systematic profit from the use of property, the sale of goods, the performance of work or the provision of services by persons registered in this capacity in the manner prescribed by law (Article 2 of the Civil Code of the Russian Federation).

The following features can be distinguished:

The first of these is the implementation of activities for the purpose of making a profit. Each property owner has the right to freely dispose of it at his own discretion for his own good, which is expressed, as a rule, in the fruits and income from the property.

The next indisputable sign of entrepreneurial activity is its implementation at one's own risk, that is, under one's own property responsibility. This risk includes the assumption by the entrepreneur as the owner of the property not only adverse consequences that may occur, but also additional (specific entrepreneurial) risk in obligations.

Small business (small business) - entrepreneurship based on the activities of small firms, small enterprises that are not formally part of the association.

Financing the activities of small businesses is the provision of the necessary financial resources for their formation and development. The amount of funding is determined based on the planned costs and the sources of their support. Funding comes from different sources at different stages of its strategic development.

1. The legal status of small and medium-sized businesses

The legal status of small businesses is determined by the Federal Law of July 24, 2007 No. 209-FZ (as amended on July 5, 2010) "On the development of small business in the Russian Federation."

Small and medium-sized businesses include business entities - individual entrepreneurs, small enterprises, including micro-enterprises and medium-sized enterprises (Article 4 of the said Law).

Small and medium-sized businesses include consumer cooperatives and commercial organizations (with the exception of state and municipal unitary enterprises) entered into the unified state register of legal entities, as well as individuals included in the unified state register of individual entrepreneurs and carrying out entrepreneurial activities without forming a legal entity ( hereinafter - individual entrepreneurs), peasant (farmer) households that meet the following conditions:

) for legal entities - the total share of participation of the Russian Federation, constituent entities of the Russian Federation, municipalities, foreign legal entities, foreign citizens, public and religious organizations (associations), charitable and other foundations in the authorized (joint) capital (share fund) of the specified legal entities should not exceed twenty-five percent (with the exception of assets of joint-stock investment funds and closed-end mutual investment funds), the participation share owned by one or more legal entities that are not small and medium-sized businesses should not exceed twenty-five percent (this limitation does not apply to business societies whose activities are in the practical application (implementation) of the results of intellectual activity (programs for electronic computers, databases, inventions, utility models, industrial designs, selection achievements, topologies of integral microcircuits, production secrets (know-how), the exclusive rights to which belong to the founders (participants) of such business entities - budgetary scientific institutions or budgetary educational institutions of higher professional education or educational institutions of higher professional education created by state academies of sciences);

) the average number of employees for the previous calendar year should not exceed the following limit values \u200b\u200bfor the average number of employees for each category of small and medium-sized businesses:

a) from one hundred and one to two hundred and fifty people inclusive for medium-sized enterprises;

b) up to one hundred people inclusive for small businesses; among small enterprises micro-enterprises stand out - up to fifteen people;

) the proceeds from the sale of goods (works, services) excluding value added tax or the book value of assets (residual value of fixed assets and intangible assets) for the previous calendar year must not exceed the limit values \u200b\u200bestablished by the Government of the Russian Federation for each category of small and medium-sized entities entrepreneurship.

2. A source of financing for small businesses

Figure: 1. Sources of financing for small businesses.

Sources of own funds are:

· authorized capital (funds from the sale of shares and shares of participants);

· reserves accumulated by the enterprise;

· other contributions from legal entities and individuals (targeted funding, donations, charitable contributions, etc.).

The main sources of funds raised include:

· Bank loans;

· borrowed funds;

· funds from the sale of bonds and other securities;

· accounts payable.

The main sources of financing are own funds. Let us give a brief description of these sources.

The authorized capital is the amount of funds provided by the owners to ensure the statutory activities of the enterprise. Category content authorized capital depends on the organizational and legal form of the enterprise:

· for a state enterprise - the cost estimate of the property assigned by the state to the enterprise on the basis of full economic control;

· for a limited liability partnership - the sum of the owners' shares;

· for a joint stock company - the aggregate par value of shares of all types;

· for a production cooperative - the value appraisal of the property provided by the participants for conducting activities;

· for a leased enterprise - the amount of contributions of the enterprise employees;

· for an enterprise of a different form, allocated to an independent balance sheet, - the value assessment of the property assigned by its owner to the enterprise on the basis of full economic control.

· varying the boundary of the classification of assets to fixed assets;

· accelerated depreciation of fixed assets;

· the applied method of depreciation of low-value and wearing out items;

· the procedure for the assessment and amortization of intangible assets;

· the procedure for assessing the contributions of participants to the authorized capital;

· selection of a method for evaluating production stocks;

· the procedure for accounting for interest on bank loans used to finance capital investments;

· the procedure for creating a reserve for doubtful debts;

· the procedure for attributing certain types of expenses to the cost of goods sold;

· the composition of overhead costs and the method of their distribution.

The most common external source of finance is loans to small businesses.

Lending to small businesses, as a rule, is handled by credit institutions - banks, as well as specialized financial organizations. It is clear that loans for small businesses are dominant among all sources of financing, since banks are the main holders of funds. For enterprises, or as they say, for enterprises of the real sector of the economy, money is exclusively a means of the entrepreneurial process and is constantly in motion. Banks, on the contrary, consolidate funds, therefore a bank is one of the main financial institutions where you can take money to organize and develop your business for a long time. entrepreneurship financial business loan

Although small business lending is dominant among all sources of external financing, in reality it is very difficult to get a loan for small business. Despite the fact that recently there have been proposals for small businesses - a loan in one day<#"justify">3. Small business financial problems and microfinance

The main problems in the development of small businesses are also financial in nature, which is manifested: - in the reduction of effective demand for the products of small businesses;

lack of working capital due to a significant reduction in turnover (production and sales) of small enterprises (especially in construction, production of building materials, cargo transportation, trade in non-food products);

the growth of overdue accounts payable of firms to banks, leasing companies and counterparties in the absence of a system for its restructuring;

deployment of the system of non-payments;

lack of access to bank lending (due to toughening requirements for borrowers and an increase in interest rates on loans).

Today, small business is financed from three main sources: equity capital, budget funds and loans. At the same time, the distribution structure is as follows: budget funds and loans make up no more than 10%, while the bulk of these sources falls on equity. This imbalance is reflected in the turnover structure of small businesses. Having a significant volume of turnover (for the first half of 2010 it amounted to 4,454,481.9 million rubles), small business demonstrates a profit of no more than 1%. This trend indicates the lack of funds for small business for its expanded reproduction. The same trend is responsible for the high share of shadow cash turnover. Overcoming this problem is possible on the basis of expanding the access of small businesses to “cheap” resources. Microfinance could play a significant role in this. Microfinance activity refers to the activity of legal entities with the status of a microfinance organization, as well as other legal entities entitled to carry out microfinance activities to provide microloans (microfinance).

Brief analyzes of small business

Table 1. Comparative analysis of the advantages and disadvantages of small business

The role of small business in the country's economy

Table 2. Analysis of small business as a model of economic activity

Figure 2. The enlarged "tree" of the problems of Russian small business

5. Reasons for the imperfection of financial markets in relation to small enterprises

Figure 3

Financial instruments used to increase the flow of various types of financing to small businesses

Figure 4

Conclusion

Currently, in the Russian economy, a key source of growth in production efficiency, saturation of the market with necessary goods, services and an increase in the standard of living of the population is the development of small business.

Small business provides the necessary mobility in market conditions, creates deep specialization and cooperation, without which its high efficiency is inconceivable. It is able not only to quickly fill the niches that are formed in the consumer sphere, but also to pay off relatively quickly, to create an atmosphere of competition, and this is perhaps the most important thing without which a market economy is impossible.

In developed countries with established market economies, small business enjoys state support, since it provides a competitive environment necessary for the normal functioning of the national economy, contributes to the growth of industrial production, improving technological processes, and reducing unemployment. State support is especially necessary for small businesses in the context of the transition of a planned economy to a market economy, when entrepreneurs enter into a competitive struggle with monopoly structures that have developed over the years, dominating the domestic and foreign markets, possessing large financial, material and human resources and, as a rule, based on the most efficient sources of raw materials.

List of references

1. Batychko, V.T. Business law / V.T. Batychko // Administrative and management portal [Electronic resource]. - Electron. Dan. - Taganrog, 2011.

Buyev, V. Small business: current state and financing problems / V. Buyev, A. Shamrai, A. Shestoperov // National Institute for Systemic Research of Entrepreneurship Problems [Electronic resource]. - Electron. Dan. - Moscow, 2010

Burlutkin, T.V. Analysis of sources of financing for small enterprises / T.V. Burlutkin // Business. Education. Right. Bulletin of the Volgograd Institute of Business, - 2012. - No. 3 (20). - P. 243

Sources of enterprise financing [Electronic resource] / STARTAP - 2012.

T. N. Kosheleva Financing of small business activity in the process of its strategic development / T.N. Kosheleva // Institute of Business and Law [Electronic resource]. - Electron. Dan. - SPb, 2010

Mikhailov A. Financing of small business - loans for small business

Small business [Electronic resource] / Wikipedia - the free encyclopedia. - Electron. Dan. - Access mode: https://ru.wikipedia.org/wiki/ Small_enterprise. - Title with screen

Organization of business activities. Schemes and tables: tutorial / comp. V.P. Popkov, E.V. Evstafiev. - SPb, 2007 .-- 67 - 70 p., 202 - 203 p.

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