This presentation was prepared as a briefing for ACCA's Financing Futures programme, which aims to extend a previous scenario analysis on the future of the financial services industry in order to find out how different types of businesses are likely to finance themselves in each of the scenarios developed therein. The full report on the earlier scenario analysis, titled 'In Safe Hands?' can be accessed here: http://www.samiconsulting.co.uk/4insafehands.pdf For more details on ACCA's Access to Finance thought leadership programme, see here: http://www.accaglobal.com/en/research-insights/access-finance.html For more details on SAMI Consulting, see here: http://samiconsulting.co.uk/ For more details on L3F, see here: http://www.longfinance.net/lf-about.html#L3F

2. Financing Futures
Enterprise Profiles
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3. 1. The informal enterprise
http://www.lendwithcare.org/entrepreneurs/index/2629
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4. The global body for professional accountants

5. THE INFORMAL ENTERPRISE
• 0 salaried employees, 100% x per capita GDP
turnover
• Has run a general store for the last 2 years
• Growth is slow due to physical constraints
• Financed from personal savings
• Needs funds for new stock, more products and
to begin expanding premises
• Risks: quality of management, competition,
customer spending and defaults, natural
disasters, crime, compliance
• Funding needs: 12.5 x per capita GDP
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6. 2. The Disruptive Enterprise
http://www.didion.com/company.html
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8. THE DISRUPTIVE ENTERPRISE (I)
• 0 salaried employees, 0 turnover
• Developed a new technology for
reclaiming and sorting scrap metal that
could revolutionise the industry
• Has used personal savings plus family
funds to build a few prototypes
• Technology needs testing, refinement,
patenting. Won’t sell for another year
• Risks: buyer interest, regulatory approval,
imitators
• Funding needs: 10x per capita GDP
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9. THE DISRUPTIVE ENTERPRISE (II)
• 45 salaried employees, 300 x per capita
GDP turnover, growing rapidly
• New technology patented, in production
and profitable, sold in multiple countries
• VC investors but little leverage
• Assets mostly patents, licences, stock
• Needs funds for overseas expansion
• Risks: imitators, regulatory policy
• Funding needs: 3,000x per capita GDP
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10. 3. The steady-state family firm
http://www.dw.de/dw/article/0,,6385455,00.html
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12. THE STEADY STATE FAMILY FIRM
• 30 employees, 100x per capita GDP
turnover
• Mid-range furniture manufacturer, owned by
same family for 100 years (3nd generation)
• Slow but relatively steady growth
• Financed from personal savings and some
retained earnings
• Needs funds for liquidity cushion and to
upgrade two key pieces of machinery
• Risks: customer spending and defaults,
dependence on the owner-manager,
governance, compliance
• Funding needs: 15 x per capita GDP
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13. 4. The leading corporate
http://www.unilever.com/
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15. THE LEADING CORPORATE
• 200,000 employees, 1m x HQ country per capita
GDP turnover
• Diverse portfolio of well known consumer goods
in multiple locations
• Share of consumer spending in most markets
growing slowly.
• 100 yrs old (some brands older), publicly listed
• Plans to acquire popular local brands &
advertise heavily in 10 promising new markets
• Risks: managing acquisitions, understanding
target markets, consistent consumer spending
• Funding needs: 125,000 x per capita GDP
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