Entrepreneur's Handbook
METHODS OF FINDING NEW CAPITAL
In the Barter transaction, the entrepreneur pays the price of the goods and services purchased by exchanging them with the goods and services they produce instead of cash. Barter operations are done through a specialist barter establishment. This is because it costs more to do the barter directly. Barter establishment creates a barter common market with the participation of various companies and in a sense creates a market for the barter. Participating firms or entrepreneurs present supply and demand information to this barter market. Thus, an information pool about who can trade with whom is created.
Barter system also provides maturity opportunity to its user. In this application, the entrepreneur who buys from the system is borrowed from the system, while the entrepreneur who makes sales is credited from the system, and thus the rights of the creditor are protected in all cases. In order to protect the rights of the creditor, the Barter organization receives collateral from the companies that purchase from the system, ie the entrepreneur, in the form of a mortgage or bank letter of guarantee. While the entrepreneur pays his debt by offering goods or services, not in cash, the creditor company collects the receivables by receiving goods or using certain services, not in cash.
Barter transaction must be made in return for goods and services that the entrepreneur can use or easily sell in his activities. Otherwise, barter operation may bring additional costs to the entrepreneur.
5.2. Crowdfunding
Funding of an entrepreneur by a group of people through the Internet is called "crowdfunding". According to this new financing model, the entrepreneur without sufficient capital seeks financial resources from all segments of the society by sharing the details of the business plan through the crowdfunding platform. Crowdfunding emerged as an alternative solution due to the difficulty in finding financial resources for small-scale and newly established companies in global markets after the 2008 global crisis. Participation of large masses can be achieved in this financing model. Thus, even high value initiatives can reach the required funds in a short time. The most important advantage of this system is the large number of supporters and their financial contribution to the enterprise according to the risk level they can bear. The support given to the entrepreneur can be a gratuitous donation as well as the option of getting a certain amount of shares from future earnings. In crowdfunding, people who support the initiative are promised prizes predetermined according to the amount of their contribution. These awards can be in the form of free product supply, souvenirs, sending thank you letters, announcing the names of the supporters.
The function of the platform, which serves as an interface in the crowdfunding business in developed countries, consists of creating the necessary environment for the promotion of the project or initiative and conveying the payments to be made by the supporters to the entrepreneur (project owner) after a certain commission deduction (5% to 10%). Some platforms return the funds collected until that time to the investors without any deduction in the event that the pre-determined fund amount cannot be obtained in the stipulated period, while some pay the fund commission collected so far, even if the target amount is not reached at the end of the specified period.
The most important risk of this system is that the investor is deceived in the Internet environment. Therefore, the surveillance and control of the platform is vital. Crowdfunding in our country is carried out under the supervision and control of the CMB. In the Capital Market Law, it is obligatory to obtain permission from the Board in order to establish crowdfunding platforms and start their operations. The institutions, partners, share transfers, employees of these platforms, the maximum limit of the money that can be invested by each fund provider or collected by the project owners and venture companies, and other principles and principles they must comply with during their activities. and the principles regarding the control and supervision of the collected funds are used in accordance with their announced purpose are determined by the Board ”. The purpose of the platform operating under the supervision of the CMB is to provide government assurance to investors against the risk of being deceived, as stated above.
5.3. Support of Public Institutions and Organizations
Some of the state supports provided by public resources are activity support (support for the activities of entrepreneurs and SMEs) and the other part is capital support (loan guarantee, loan interest support, etc.). On the other hand, there are also incentives (tax, social security premiums, etc.) provided to businesses and investors by different ministries. In addition, public institutions provide indirect support to entrepreneurs with cash contributions to the establishment and operation of İŞGEM and TEKMER type structures. Therefore, direct and indirect financial supports provided to entrepreneurs and SMEs with public resources show a great variety (Ministry of Development, 2014: 32).
Below is a summary of the highlights of these institutions:
KOSGEB is the first address that comes to mind in terms of support for entrepreneurs. With Entrepreneurship Trainings, it aims to spread the entrepreneurship culture in the country. Thus, in line with the general goal of establishing successful businesses, entrepreneurs are supported to have knowledge and skills in starting and running a business, to realize their roles and responsibilities in this process, and to gain knowledge and experience to prepare business plans / business models for their own business ideas. Entrepreneurs who have completed the Entrepreneurship Training given by KOSGEB are provided with the support of KOSGEB for entrepreneurs. One of the supports KOSGEB offers to entrepreneurs is the business plan award. The business plan award includes the awards given to entrepreneurs ranking in competitions organized or approved by KOSGEB. In addition, KOSGEB supports entrepreneurs with structures such as Business Development Center (İŞGEM) and Technology Development Center (TEKMER).
In addition to Entrepreneurship Supports, KOSGEB provides support to enterprises in the form of R&D, Technological Production and Localization Supports, Enterprise Development, Growth and Internationalization Supports and SME Financing Supports, as well as loan interest supports with non-refundable and refundable supports.
The supports provided to entrepreneurs by KOSGEB in 2017 to shed light on the entrepreneur are summarized in the following Table:
In 2017, 61,632 applications were made to KOSGEB programs and 51,639 of them were approved. 894 out of 1,400 applications made to the R&D, Innovation and Industrial Application Support Program were approved. While 16,246 applications were made to the Entrepreneurship Support Program, 15,544 of them were approved.
The main headings of the support provided by TÜBİTAK to encourage entrepreneurship are as follows:
- TeknoGirişim Capital Support Program
- Entrepreneurship and Innovation Competitions Program
- Entrepreneurship and Innovation Training and Research Activities Support Program
- Venture Capital Support Program
- It is a Support Program for Increasing Capacity in Innovation Entrepreneurship Fields.
In this context, the supports provided by TÜBİTAK in 2017 are summarized below:
- Within the scope of TEYDEB Programs, grants were provided to 1,972 projects, including 2017, in priority areas determined by the Supreme Council of Science and Technology (BTYK). Together with the ongoing projects from previous years, the total amount of grant support is 377 million TL.
- Turkey Industry Management and Administration Institute (TÜSSİDE) supported joint projects with some institutions in 2017. These include the following projects related to entrepreneurship:
DOKAP: "Entrepreneurship and Innovation Ecosystem Research and Development Project" carried out with the Regional Development Administration.
GAP: "Entrepreneurship and Innovation Ecosystem Research and Development Project" carried out with the Regional Development Administration
- 1512 Techno-entrepreneurship Capital Support Program (BIGG): In 2017, 24 million TL grant support was given and 195 of the supported entrepreneurs established companies. A total of 6,635 business idea applications were made to this program in the two terms of 2017, and a total of 426 were entitled to support. Of the 206 projects that were entitled to support in the first period, 195 established their companies.
- 1514 Venture Capital Support Program: The project was called for in 2018, and it is aimed to provide a total of 100 Million TL grant support in the following five years. The total amount of grant support given under this program in 2017 is 7.349.232 TL.
- 1601 Support Program for Increasing Capacity in the Fields of Innovation and Entrepreneurship: 33 universities supported by the Call for the Creation and Implementation of an Entrepreneurship Certificate Program in Universities opened in 2015 within the scope of the program continued to open entrepreneurship certificate programs for their students.
1513 Technology Transfer Offices Support Program: In 2017, a total of 20,659,662 TL grant was provided to the supported universities.
In addition, the Ministry of Economy, TTGV, Development Agencies and so on. There are also activity supports provided by institutions (Ministry of Development, 2014: 32-35).
Finally, statistics on the Credit Guarantee Fund, which was created to assist the entrepreneur with collateral, are presented below: