Makati Professional School
Makati City
July 15, 2016
Several weeks ago I got text messages and email from someone named Rheeza Candelaria who claimed to be an intern at ANC Shoptalk. She had questions which I readily answered via email, although I did not confirm or investigate who she was. And then I forgot about them. Last night, I found advice flashed at the ANC shop talk:
I hope you get some inspirations and more ideas from our conversation
What I mentioned in my test are formal institutions where an aspiring entrepreneur may obtain furnding:
1. Micro finance instituions may be rural banks or institutions that are micro finance companies whose main purpose is to lend amounts of not exceeding P150,000. They may be collateralized or non collateralized. They are patterned after the Grameen Bank established by Mohammad Yunus. They are usually clean loan, secured by joint and several commitment of a group of borrowers and paid regularly (weekly very much like the 5/6 of Bombay) The group members undertake to collect from the members of a group.
2. Cooperatives - refer to credit cooperatives. From what I know, one can borrow up to 2x your contribution to the cooperative. Thus if your equity in the credit cooperative is P1,000, you can borrow up to P2,000 This encourages thrift, capital formation (that can help other cooperative members) And the arrangement doubles the amount available for starting a venture.
3. Grants - There are foundations that gives grants to foundations and religious groups to fund projects of cooperatives neighborhood associations I know of a priest who was able to obtain a grant from a Canadian donor in the amount of $1 million (P40 million) over a five year period. for Aetas in Tarlac. They are to be used for schools, markets and livelihood project. I learned from an MBA student, a Japanese expatriate working at ADB who said that ADB through him lent $5 million to DTI who in turn to Small Business Corp lent it to entrepreneurs. through Tulong sa Tao page 28. Please further various govt programs for micro credit by various govt agencies
4. Angel Investors
They are few and as luck would have it, SM was said to be have benefited from such angel investor: the M is Mr. Senen Mendiola who gave assistance to Henry Sy early on, and the large fast food chain was helped by a furniture manufacturer in Cubao when he started . Apple was helped by angel investor when such an angel lent Steve Jobs cash and credit in the amount of $200,000 total to start Apple. They failed to get financing from a bank.
Dennis Mendiola founder of Chika got a boost from Oscar Reyes, former chief of Pilipinas Shell. Angel investors who are retired or semi retired business executives and entrepreneurs lend not only money but their expertise and network to t he business. But they demand higher than ordinary returns.
We heard news that there seems to be a movement for growing number of angel investors
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Hi Rheza:
From Entrepreneur - 10 ways to fund a start up
Answers to your follow up questions:
1. Crowd funding is inviting possible lenders, investors, donors via the net. You present your offering business plan, as to banks or venture capitalists; you make your pitch via the web (there could be apps or website for this) and try to get funders, lenders investors become interested in your project/product. There are many ventures abroad that were financed/funded via crowd funding. So parang inbound ang procedure (as in inbound marketing) Rather than outbound, you actively search for funders.
Those that are available are:
2. Donation and grants for start ups
Multilateral agencies and NGOs donates, gives to communities and individuals (and other NGOs charitable institutions too) seed capital for starting business that are to be paid forward, or paid soft interest especially in devastated areas by calamities or catastrophes or that are impoverished.
You can get donations and grants via crowdfunding too.
Grants gov in the US - How to obtain grants from Federal Agencies
