Saturday, June 2, 2012

Seed Capital Market

Is there a need for seed capital market? if it is there what should it offer? How will this system helps the economy especially into equity based  economy?

I have always asked question if there are many people out there trying to build a business of their own but have no time nor someone that can help them build one while they are still in employment.

I always imagine if there is a market similar to those of NYSE where there are listing of potential business idea needing:
1) Capital to finance the operation and start up.
2) Expertise in different field required by the business.
3) Business support services to assist new business.
4) Legislatively supported by government trade development agencies.

I can imagine that plenty of middle class employee would see this as an opportunity to utilize their skills and expertise in a business of their own without having to leave employment until the business start to be able to generate sufficient income for a decent salary.

Those with time and specific skills can meet with people with money and have little time to spare. Those with  money and skills can meet with people with potential and viable business idea.

Since money is involved, someone has to be a watchdog preferable from the government. Making sure that rules are laid down for execution and compliance. Business services should be able to attest to a business plan while taking up responsibility to somewhat similar level to audit firm.

I foresee that having a well organized business development for the people interested to own a business will generate a real positive effect to the economy as more idea and brainpower are channeled towards creating business. These will later be transformed into mergers and acquisition that will convert multiple small business into a business giant that may well be very strong to explore bigger market.

Imagine a society where employees or salary takers are those willingly wish to stay as an employee while unborn entrepreneur are revealed with opportunities simply to be executed.

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