State Financial Corporations (SFCs)

Objectives

1. Provide financial assistance to small and medium

industrial concerns. These may be from corporate or co-
operative sectors.
2. Provide long and medium-term loan repayable ordinarily
within a period not exceeding 20 years.
3. Grant financial assistance to any single industrial concern
under corporate or co-operative sector with an aggregate
upper limit of rupees Sixty lakhs.
4. To lay special emphasis on the development of backward
areas and small scale industries.
 Functions

• Grant of loans and advances to or subscribe to debentures of,

industrial concerns repayable within a period not exceeding 20
years, with option of conversion into shares or stock of the
industrial concern.
• Guaranteeing loans raised by industrial concerns which are
repayable within a period not exceeding 20 years.
• Guaranteeing deferred payments due from an industrial concern
for purchase of capital goods in India.
• Providing technical and administrative assistance to any industrial
concern or any person for the promotion, management or
expansion of any industry.
• Planning and assisting in the promotion and development of
industries.
Family & Non-family
Entrepreneur
 Who are professionals?
• Who have specific body of
knowledge
• Have a value & general know how
• Who manages professional mobility
• Who are reliable & trustworthy in
the sense of their performance.
 Elements of professionalism

• Responsibility
• Skillful
• Competency to retain & distribute
information
• Communicative
• Integrity
• Personal development of one self &
of others
 Role of professionals
• To see the on going trend
• To update their knowledge
• To maintain the chain of
professionals
• Provides training
• Competence development
• Guiding the related establishment
 Professionalism

Professionalism is a commitment to
develop one’s skills & then
applying them to resolve problems
responsibly.
 Family Entrepreneurship
• Family Entrepreneurship: is defined
as an ownership control by
members of family in the form of its
management by taking this to the
generations ahead.
 Differentiation
On the basis of:
• Degree of open mindedness
• New practices
• Impartial HRM
• Organization oriented financial
management
• Decision making style
 Role of women as an
Entrepreneur's:
• Imaginative: It refers to the imaginative approach or original
ideas with competitive market. Well-planned approach is
needed to examine the existing situation and to identify the
entrepreneurial opportunities.

• Attribute to work hard: Enterprising women have further

ability to work hard. The imaginative ideas have to come to a
fair play. Hard work is needed to build up an enterprise..

• Persistence: Women entrepreneurs must have an intention to

fulfill their dreams. They have to make a dream transferred
into an idea enterprise; Studies show that successful women
work hard.

• Ability and desire to take risk the desire refers to the

willingness to take risk and ability to the proficiency in
planning making forecast estimates and calculations.

• Profit earning capacity:  she should have a capacity to get

maximum return out of invested capital.
VENTURE CAPITAL
 WHAT IS VENTURE CAPITAL?
• Venture capital is a generic term used to
refer to financing characterized by high risk
& potential for substantial returns. The term
is most often refer to SEED CAPITAL
required to launch new commercial ventures
& to finance their early-stage growth.
• It is source of long-term finance to provide
equity capital to ventures adopting new
technology & develop entrepreneurs in
setting up new units.
• Venture capital is a high risk-high returns
business.
 VENTURE CAPITALISTS
Venture capitalists comprise of professionals of
various fields. They provide funds to these firms
after carefully scrutinizing the projects. Their main
aim is to earn huge returns on their investments,
but their concepts are totally different from the
traditional moneylenders. They Know very well if
they may suffer losses in some projects, the other
will compensate the same due to high returns. They
take active participation in the management of the
company as well as provide the expertise and
qualities of a good banker, technologists, planner
and managers. Thus venture capitalists and the
entrepreneur literally act as partners.
 VENTURE CAPITALISTS
• Venture capitalists are higher risk investors and, in
accepting these higher risks, all they desire is a
higher return on their investments. The venture
capitalists manage the risk/ reward ratio by only
investing in businesses that fit their investment
criteria.
• A venture capitalist is a person or investment firm
that makes venture investments, and these venture
capitalists are expected to bring managerial and
technical expertise as well as capital to their
investments.
 FEATURES OF VENTURE
CAPITAL
For New Entrant
Continuous Involvements
Mode of Investment
Long Term Capital
Hands-on Approach
High Risk-Return Ventures
Source of Finance
Liquidity
VENTURE CAPITAL
FUNDING PROCESS
Deal Origination

Evaluation

Investment Valuation

Deal Structuring

Post Investment and Exit