Economic Themes (2010) 48 (2) 1, 145-157

THE ROLE OF “BUSINESS ANGELS” IN FINANCING SMALL AND MEDIUM SIZED ENTERPRISES


Nadica Figar

Abstract: Financial crisis has expanded from the USA to the whole world and caused not only financial, but a global economical crisis. Reduced ammounts of loans lead to the reduction of production in the real sector on the one hand and, on the other hand, to the reduction in demand. SMEs, which are, joined together, the largest employers, suppliers and inovators, have suffered the strongest blow. They cannot finance their activities independently, therefore they are forced to reduce the number of employees. Due to the fact that the investors are becoming more cautious, the majority of the SMEs will be liquidated. The state, banks, investment funds, strategic partners, capital market, pawn – shops and wealthy individuals are the ones who can be „the angels“ for these enterprises. „Business angels“, who are usually connected to crisis situations and ventures, are the ones who could play a significant role. They are usually wealthy individuals who wish to preserve their privacy. In the business world, they work through groups, confederations and angels networks.

Keywords:  business angels; business angels groups; confederations; business angel networks; investment forum; entrepreneur; small and medium sized enterprises (SMEs)

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