Asset Based Approaches to Entrepreneurship Development in Local Economic Development
There is a saying in small business circles, that one should never copy the successful system of another because it is never clear whether the business succeeded because of the good plan or because the owner was bank-rolled by a rich uncle.The problem of under-capitalization is a large on in the small business sector. Banks have a loan failure rate threshold for loan officer performance of .01%, and that is for the bad ones. That says that Banks are not risk-oriented institutions, and are very reluctant to loan money to new startups. Equity is a key consideration.
However, those who have a good amount of equity and live in a more unsettled area of the globe look with envy at our stable marketplace and business context. With immigration policies favoring those who have the wherewithal to make a life on their own (i.e. they have the necessary capital) we could perhaps look at that more closely and ask what is needed to be serious about starting new businesses in our local areas.
There are a fair number of support and start up programs available, the terms of which vary from year to year, depending on which sector of the population the government feels needs to be encouraged to move along. Local economic development efforts could be carried out in relation to such programs as they come available, either a start up supports or expansion supports.
Some links to sites related to the asset aspect of small business support are listed below.
Links to Further Resources:
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