At the end of this module you will be able to:

Understand the basics and principles of entrepreneurship

Acquire abilities to discover opportunities for self-employment

Gain knowledge of the main alternative means to credit and how to choose among them

Search for and exploit alternative funding opportunities related to crowdfunding, business angels, venture capitalists or grants

According to the Transaction definition, it is a finalized agreement between a seller and a buyer for transferring goods, services, or financial assets in exchange for money is known as a transaction.

Financial Planning is the process of: Estimating the capital required and determining it’s competition Framing financial policies in relation to procurement, investment and administration of funds of an enterprise.

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The table below summarizes some of the key differences between saving and investing

https://www.bankrate.com/investing/saving-vs-investing/

A company funds its operations through two different sources.

A financial safety plan is a combination of various insurance policies and a savings account.

Its function is to help you reduce financial risks that may be caused by unexpected expenses. It protects you and your family's long-term financial goals by giving you a fallback plan that will not derail your overall financial plan.

Financial Stability
A financial safety net gives you financial stability by providing a cushion for any financial emergency. With a financial plan, all your income and expenditures are structured to meet your financial goal. Any slight change in the routine could put your finances off balance.

It Helps You Organize Your Financial Plan
A safety net plan is part of your financial plan. Having it included in your financial plan gives it structure and organization. A safety net can be classified as one of the strategies for meeting your mid-term and long-term financial goals.

Among the most popular alternative means to credit, there is crowdfunding, which includes internet-based initiatives aimed at funding a project/business idea by raising small amounts of money from a large number of people.

This financing mechanism is characterized by lower intermediation costs and lesser emphasis on risk assessment.

Other features:

• Reward based investments (investors receive a final product rather than repayment)
• Suitable for product-based businesses rather than service-based activities
• Good communication and marketing skills required

Little barrier to entry Gaining costumers while crowdfunding No repayment requirements	Crowdfunding platforms fees High effort to organize an successful campaign Suitability for only some businesses

To choose the right platform for a crowdfunding campaign, the following factors should be consider:

1.Which is the platform’s crowdfunding model?
Reward-based (the most suitable for small businesses), equity-based, donation-based

2. What happens if the target is not reached?
All-or-nothing campaigns are often more successful that keep-it all campaigns

3. Which are the target audiences of the platform?
Generalised Platform vs Specialised Platform

4. How much will it cost?
Search for the exact fees of the platform, also considering the taxes on the money raised.

A specialised platform for women IFundWomen is widely recognized as the crowdfunding industry leader for female founders and creators. It also offers to its members an online course on how to crowdfund. Source: IFundWomen website

BUSINESS ANGELS

• Private investors (typically managers or entrepreneurs) investing their own money in innovative ideas with high profitability potentials, in exchange for equity.
• They tend to invest lower amounts earlier in the fundraising process
• Within the business, they will provide for mentorship and networking opportunities.

VENTURE CAPITALISTS

• Venture capitalists are institutional investors; they invest large amounts in businesses later in the fundraising process and in exchange for more equity.
• They tend to ignore small businesses and can lead to a loss of company control.

To start financing a business idea, Business Angels can offer a great support.

However, there are some challenging factors, like how to find them (see next slide) or how to approach them (see the following tips):

• Make sure to know your potential Angel’s background and experience
• Communicate the importance of your product (a good Business Plan is the key)
• Keep it simple - “Would a child understand your business proposition?”

The European Commission offers plenty of networking initiatives for women entrepreneurs, which can support them also in finding the right Business Angel:.

WA4E
The Women Business Angels for Europe's Entrepreneurs (WA4E) is the Business Angels Europe programme unlocking female angel investment and access to risk capital for women entrepreneurs.

WEgate Platform
The European Gateway for Women’s entrepreneurship WEgate is an e-platform launched by the European Commission, a growing network of stakeholders that are engaging to support women entrepreneurs across Europe. WEgate provides information and links on access to training, mentoring, advice and business networking opportunities at EU level as well as national level.

The women entrepreneurship group of the EEN
The group connects women entrepreneurs to the Enterprise Europe Network and provides concrete services, (business partnering, access to foreign markets, cooperation with local networks and access to EU funding)

Get a grant and obtain debt-free money sounds like the most preferable option.

However, there are some factors to keep in mind:

• Eligibility requirements
• Stiff competition
• Long and detailed application processes that may be time-consuming; moreover, the planning and writing of a proposal may require the external support of a consultant/expert and therefore additional costs.

Grants are often addressed to groups that face obstacles in getting traditional loans, as in the case of women - in particular if coming from disadvantaged areas (e.g., rural areas).

Where to search for this opportunity?

The WEgate Platform (introduced in the previous slide) represents a practical tool also to monitor specific grants opportunities for women at national level. Information can be filtered by country and keywords at the following links:

• “Financing and funding” section   https://wegate.eu/start/financing-funding
• “Starting a business” section   https://wegate.eu/start/starting-business

A new initiative of the European Union funded by the Horizon Europe Programme.

Among its several services, it offers financial support to female company as an individual grant of EUR 75,000 to support the initial steps in the innovation process, and the growth of the company.

Click on the image for more info

2. EIC Accelerator

The initiative, that is part of the European Innovation Council pilot, supports high-risk, high-potential small and medium-sized enterprises and innovators to help them develop and bring onto the market new innovative products, services and business models.  Startups and SMEs with female CEOs are particularly welcomed.

The EIC Accelerator provides blended finance composed of:

• An investment component (direct equity or quasi-equity such as convertible loans)
• A grant component to reimburse eligible costs incurred for innovation activities (e.g. demonstration of the technology, prototyping, R&D and testing required to meet regulatory requirements, intellectual property management, marketing approval. etc

Click on the image for more info

Access to EU Finance - European Commission (europa.eu)