Funding & Financing Community Enterprise


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Funding & Financing Community Enterprise

  1. 1. Funding & Financing Community Enterprise by Chandra Marsono SSn,MM
  2. 2. What is the difference between Funding & Financing? Funding is generally a sum of money provided free of charge to an organization (often) on the basis of a submission. It may have a contractual requirement but no requirement to be paid back. Philanthropists & government donations are the common facilitators. Financing is another different story. Financing is generally money provided with an expectation of repayment -mostly with an interest component. Investors and banks are common facilitators. FUNDING vs. FINANCING
  3. 3. Funding Sources Government funding is based on the requirements of the department or programme from which it comes. It is made to public, community , and private organization as well as to individuals. All levels of government have funding programmes. Philanthropic funding is generally limited to charitable organizations. The Corporate sector also provides funding to community organisations through their CSR programmes. Public Donation is also a source of funding for many community organisation (especially larger ones). FUNDING vs. FINANCING
  4. 4. Finance Sources Banks and other deposit taking institutions provide finance for business and other purposes to individuals, organisation and companies. Venture Capitalist is a source of financing for startup companies or turnaround ventures that involve investment risk but offer the prospect for above average future profits. Venture capital supplements other funds that an entrepreneur is able to tap. Venture capital sources include wealthy individual investors, subsidiaries of banks, small business investment companies, groups of investment banks and venture capital limited partnerships. Venture capitalists are commonly rewarded either with profits, royalties preferred stock, capital appreciation of shares or any combination thereof. The Community where you set up your enterprise can also be directed into funding a business project. They are awarded with shares of profits and must be educated at the possibility of loss. This is called Share Capital , where the company shares are sold as a mean to raise capital. FUNDING vs. FINANCING
  5. 5. Other types of Investments Not all investments we need to find are money based. Expertise or guarantees have an equal amount of importance in any business startup and are valuable assets to have. These so called experts can be divided into two types, philanthropic (free of charge) or venture capitalist (awarded by shares or profit). They have the know how and expertise to run a business or guarantee distribution channels or sales. INVESTMENTS ARE NOT JUST MONEY
  6. 6. Thank You
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