World Of Finance

1. What is micro finance ?  “Micro finance” is often defined as financial services for poor and low-income clients. In practice, the term is often used more narrowly to refer to loans and other services from providers that identify themselves as “micro finance institutions” (MFIs). These institutions commonly tend to use new methods developed over the last 30 years to deliver very small loans to unsalaried borrowers, taking little or no collateral. These methods include group lending and liability, pre-loan savings requirements, gradually increasing loan sizes, and an implicit guarantee of ready access to future loans if present loans are repaid fully and promptly. More broadly, micro finance refers to a movement that envisions a world in which low-income households have permanent access to a range of high quality financial services to finance their income-producing activities, build assets, stabilize consumption, and protect against risks. These services are not limited to credit, but

If a person wants to become an entrepreneur then he must start a new business and for starting up the business he needs to have a business plan . It is not necessary that the plan has to be a new idea for which he will need capital. The amount of capital depends upon the type of business that the entrepreneur is starting. He can get the required capital from many sources. The required capital, be it less or more depends upon the business plan. Some of the sources from which the entrepreneur can raise the required capital are: ·          Own funds ·          Venture capitalists ·          Angel investors ·          Partnership ·          Banks ·          From friends and relatives ·          Institutional investors In this article we will be concentrating on the venture capitalists. Definition Venture capitalists (VC) are those businessmen who are interested in startu p companies and who provide capital for such companies. It is not necessary that venture capitalist must be a busi