Financing great entrepreneurs ideas to make great SMEs via business plan competitions

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Financing great entrepreneurs ideas to make great SMEs via business plan competitions

Spain
Project Summary
Elevator Pitch

Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.

A jointly financed business plan competitions by the local governments and private sector will be organized once a year which will be participated by SMEs and entrepreneurs. These business plans should address the major problems of the local area where the businesses will be established. The competition will address the problems of financing of SMEs that address the needs of the local area.

About Project

Solution: What is the proposed solution? Please be specific!

Our solution is unique because it liberates the government from the task of evaluating deserving SMEs who need financial help and gives the private sector a chance to identify huge business opportunities which they can invest nurture. It also allows entrepreneurs to improve their business skills to strengthen the SMEs that they founded.
Impact: How does it Work

Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.

Business plan competitions to generate innovation has long been well known method to identify good SMEs. It has to be well crafted and organized so it will address the problem. Collecting ideas from the masses is one of the best way to solve a problem. Each year thousands of business plan competitions are held in north America and Europe but very few of these are held in other parts of the world because of poor communication. We should spread the culture of innovation through fair competition.
About You
Organization:
Green Earth Aerogel Technologies
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About You
First Name

Fortunato

Last Name

Cardenas

Your Organization

Green Cleantech Company

Country

, BA

About Your Organization
Organization Name

Green Earth Aerogel Technologies

Organization Phone

934422081

Organization Address

Calle La Palma 1 1o4a

Organization Country

, BA

Organization Type

Private Institution

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Your solution
Country your work focuses on

, BA

If multiple countries, please list them here. If your solution targets an entire region, please select it below

Northern europe, Russia, USA and Canada and all temperate countries.

Region(s) your solution focuses on:

Africa, East Asia and the Pacific, Europe and Central Asia, Latin America and the Caribbean, Middle East and North Africa, South Asia, North America.

Range of turnover in your target firms, in USD

$11-20 Million.

Average turnover in USD of your target firm

5 million dollars

Number of employees in your target firms

More than 150.

Average number of employees of your target firm

50

Specify the size, average and range of expected loans or investments in each target firm

Each business activity identified by the business plan competition is expected to generate huge investments based on the projected potential income. The size of the investment really depends on the value of the winning business proposition. The goal to cultivate, identify and support entrepreneurs so SMEs will get the financing it deserves through the winning entrepreneur.

What stage is your solution in?

Idea phase

Innovation
How does your proposed innovation leverage public intervention in catalyzing private SME finance?

Problems identified by entrepreneurs are not usually identified by the government because they have different mind sets. The business solutions that the entrepreneur brings need the support of successful private entities which need the persuasion of governments so they will intervene. Our innovative solution will produce the right inter-action between innovators, government and private investors.

What barriers does your proposed solution address?

Informality, Lack of collateral, Lack of SME access to skills / knowledge / markets, Underdeveloped local capital markets (term local currency funding, exit options for SME equity), General barriers to SME development related to investment climate, Specific barriers to fragile and weak states.

If you checked any of these barriers, describe how your solution addresses them

Business plan competitions jointly financed by government and private entities for SMEs will reveal the problems, barriers and solutions of every specific area. The main role players who can solve the problems will also be identified because an effective business plan address almost all the problems of a SME.

Impact
Provide empirical evidence of your proposed solution's success/impact at present. If your project is in the idea phase, please provide evidence that speaks to its potential impact

The Government of Andorra is a clear example of this solution. It is a tiny territory with limited resources and relies mainly on tourism. Andorrans have organized a yearly business plan competition for local SMEs which is partially financed by the government and private sector. This is called Premi Innovadors. Such activity can be replicated all over the world specially in less developed countries or even down to municipal levels.

How many firms do you expect to reach?

Every local government that is willing to participate could be reached by this innovative solution. Depending on the size of the prize and participation of the private sector and number of entrepreneurs.

What is the volume of private SME finance you aim to catalyze?

It really depends of the time frame of the competition and the size of the prize. If for example the competition is held twice a year lesser volumes of SME finance can be catalyzed.

What time frame will be required to reach these targets?

One year is the ideal time frame. These gives time for the entrepreneurs to prepare and also allows winning SMEs to demonstrate that they are earning and could help in the future of the next year's competition.

Does your solution seek to have an impact on public policy?

Yes

What would prevent your solution from being a success?

Lack of information dissemination. If nobody joins the competition and nobody organizes the competition and nobody participates then the solution is dead.

Sustainability
List all the funding sources that are required for the sustainability of this solution

Private sector participation in the business plan competition. Example a polluting Bus company and the local government of a town will finance and organize the business plan competition and a winning business plan of an SME will be chosen. The plan will be surely help both the Bus company reduce its pollution and help the customers and government win a solution for all.

Demonstrate how your proposed solution has the capacity to graduate from dependence on public finance. What is the time frame?

The business plan competitions will eventually be financed by the SMEs that won the competitions. Until a time will come that public finance will no longer be necessary to finance the business plan competitions and be purely a private endeavor.

Demonstrate how your proposed solution will survive a potential loss of its largest private funding source

The solution will be financed jointly by the government and the private sector therefore the risk is jointly shared by the public and the private sector. The private sector will have limited loss and could easily survive this loss. Also the risk was studied through a competition and has very little chance of failing except if the judges of the competitions were incompetent.

Please tell us what kind of partnerships, if any, could be critical to the greater success and sustainability of your innovation

If our solution was chosen we will become the worlds biggest organizer of business plan competitions. We could therefore identify a business solution to every problem being encountered by the SME. The partnership we need is a partnership of mutual trust between investors and local governments.

Are there non-financial issues that could threaten the sustainability of your proposed solution?

Government stability is an issue that could threaten the solution.

Please tell us if your proposed solution aims to scale up through a high growth sector, expand immediately to multiple sectors, and/or scale up geographically

The business plan competitions will begin in small towns then later on it will be provincial wide and later nationwide and later regional and up to trans continental and global level.