United States Charity

Jonathan Cooper asked:


Copyright (c) 2008 Law Offices of Jonathan Cooper

Unlike large corporations, who have in-house counsel, a small business is confronted by difficult choices when faced with the need for legal counsel – which firm do you hire? Do you look for a big firm or a small firm? In order to assist the small business owner in making these decisions, I have compiled the following list which clarifies some of the advantages and disadvantages of the big and small firms.

Big Firms:

In general, there are four (4) reasons why you may want to hire a big law firm to represent your small business:

(1) Resources.

You need sufficient support staff to manage an antitrust matter, a complex merger and acquisition, or a litigation matter with documentary discovery that would fill a large conference room or two.

(2) Interdisciplinary Expertise.

You require the in-depth knowledge of counsel on a broad range of legal services to collaborate on matters requiring expertise spanning several disciplines, such as corporate and securities, mergers and acquisitions, securitization, intellectual property, funds and other pooled investments, bankruptcy and corporate reorganization, bank and commercial lending, public finance, real estate, tax and employee benefits, as well as trusts and estates.

(3) Global Presence.

You need a global network of law offices to provide integrated multi-jurisdictional and cross-jurisdictional legal services.

(4) Big Firm Stature.

You need the prestige of a big firm’s name on an opinion letter to support the actions your company intends to take.

Small Firms:

Conversely, if your needs do not fit into one of these categories, your money would probably be better-spent on a small law firm specializing in your business’s needs. The reasons for specifically choosing a small law firm are several:

(1) Client Satisfaction is Critical to a Small Firm’s Survival.

Since, by definition, small law firms lack the “big name” distinction of a large law firm, the distinguishing characteristic for any small firm is its reputation for excellence in its particular areas of practice, and the personal attention the firm offers each client. Since each attorney’s performance is judged on client satisfaction and results obtained rather than on the attorneys’ annual billable hours that are charged to the firm’s clients (including you), the small firms have a vested interest in assuring that the resolution of your litigation or other assignment is as expeditious and inexpensive as possible.

(2) Seeing the “Big Picture”

The day-to-day handling of your case is carried out by the partner in charge of the case, and therefore will always remain mindful and positioned to recognize the most cost-effective manner to achieve your goals.

(3) No Duplication of Work Effort

You should never be billed for meetings between the partners and associates on your case, will rarely, if ever, be billed for more than one attorney appearing at a Court conference or deposition. Why should you pay to assure that the “head” knows what each “hand” is doing, or pay for two or more attorneys appearing when often only one of the attorneys will be allowed to speak on your behalf?

(4) Learning on your Nickel

Since your case is being handled directly by the partner in charge, you will only pay your lawyer to complete the requested task; you will not incur the additional time and expense for educating a new attorney.

In sum, selecting the right law firm is not always simple; one size does not fit all. The key is to choose wisely based upon the factors that are set forth above. It will save you a lot of time and aggravation (and probably money) in both the short and long term.

There’s plenty of advice out there for job candidates who are submitting resumes to big corporations, recruiters, or even mid-sized companies that have HR departments handling the whole hiring process. I work for a small, healthy and growing business which currently employs about 12 people. Most of these employees are specialists, a couple are management, and we have two support staff members. We have a multi-functioning office manager (myself) who handles IT support, HR and hiring initiatives, as well as administrative, marketing and public relations support. It’s a pretty typical small business set up.

I read through information published to help job seekers sometimes and am alarmed at how many tips and techniques do not translate from being effective for big businesses to working when contacting a small business. For instance, I read an article on Yahoo yesterday about 12 Tips to Get Your Resume Noticed. I was totally on board with Ms. Johnson’s advice until I got to tip #9. And #10. And #11 and 12 as well. I sat there imagining what would happen to my productivity level if all of the sudden even a percentage of the 75+ candidates who email resumes to me every day for our current open position decided to – gasp – call me!

So, I put together a list of things to do, and not to do, when applying for a job at a small company:

Remember that the person reading resumes in a small company probably wasn’t hired for that sole purpose. He or she has plenty of other job responsibilities that are waiting until all these resumes are reviewed. Be clear, concise and on-point. Include any and all information that was asked for in the job ad. Stand out by preparing a short, detailed cover note about why, exactly, you are the perfect candidate for the position advertised. Don’t call. Please, please, please don’t call. I guarantee that it will only serve to annoy the already overworked employee who has spent the morning reviewing resumes and is trying desperately to catch up with his or her normal workload. Be extremely diligent in reviewing your resume for errors and be sure that it is written in a formal tone. If you give a reviewer any reason to toss your resume into the “Do Not Contact” file, that’s a great excuse to move on to the next applicant in that growing stack of resumes left to review. Don’t follow up unless you have been contacted. While larger companies may have the bandwidth and/or technical capabilities to respond to each and every applicant, small companies cannot always do so. If you haven’t heard back, send your resume again, but don’t call or send emails asking for an update. If you didn’t read anything about the job or don’t really have any relevant experience but are just applying to everything you find on Craigslist.com “just in case”, don’t expect a response. Big companies and recruiters have tools to identify candidates with the right background and skill sets without reading each resume that comes in. Small businesses do not, and I’m sure the person tasked with reading your resume does not appreciate the waste of time.

Really, the number one thing to remember when applying for a job at a small company is to be respectful of the hiring manager’s time. Show that you are by providing exactly what’s asked for and by making it easy for the hiring manager to quickly see how your specific skills and experience translate into the perfect candidate for the job you’re applying for.

Vikram kuamr asked:


Internet has proved itself a blessing for mankind. It has made work easy and convenient. In addition, it has also become best place for marketing or for business. Several large and small businesses are running on internet. There are thousands of sites on the internet which can help you in getting answer of any question. Almost everything can be done through internet and that too in an easy and convenient manner. There are several small businesses that are running on internet but because of poor networking they are unable to gain much profit. As we all know that there are several website links on the internet, so how can one manage to mark up his website links presence on the internet. If you are engaged in any small business and not gaining much profit, then I can suggest you a company which can help you in gaining much profit. All you have to do is to visit blissent and join them.

 

This company is among the best choices one can get for promoting his website links. This company is not new to the market and is very reputed for its quality services. This company has loads of experience and can surely benefit your small business. All you have to do is to provide your website links to them and they will turn traffic to your site. Your website links will be promoted to the top page so that visitors can mark up your presence on the internet. This will not only promote your websites links but will also promote your small business and your products.

 

There are several other benefits which you will get by visiting blissent, let us discuss some of them:

 

1)      Increased visitors: the first benefit which you will get is that you can increase the traffic to your website links. By joining them you can increase the number of visitors to your website links. This will surely help your small business in achieving great heights. You can develop a better networking which will ultimately increase the website links traffic and the small business. You can also add logos and traffic add banners so that one can easily mark your internet presence. All you have to do is to submit your links in the provided categories and you will be provided with real targeted traffic so that your online small business can flourish in a better way.

 

2)      Excellent services: the other benefit which you will get is that you can avail their excellent services. First of all you can join them free by submitting your links in the below stated category. They provide wide range of categories so that you can easily choose a category which can suit your small business in the best manner. If still you do not find a suitable category you can mail them about your website links and the desired category. In just a matter of time you will be provided with a new category so that you can submit your website links easily. This added facility will surely help in promoting the website links and the small business in a proper way. They also charge very low amount for promoting your website links so that you may not feel any stress on your budget.

M Lesko asked:


Why Will the Government Offer Grants for Small Business?

Are you an entrepreneur that needs a business or small business grant? Are you motivated and skilled enough to begin your own small business? Do you need free money to start a small business but haven’t got a clue as to where to start? Look no further; there’s hope for your small business. As an enticement to small business owners, the government earmarks several million dollars in government grant money to assist small and personal businesses to flourish. There are millions that are unclaimed each year resulting from the lack of knowledge in regard to government grants. Thanks to Matthew Lesko, more knowledge has gotten out about how to get free government grants for small businesses, paying bills, college, etc. Matthew Lesko has written several books that educate individuals exactly like you on the way to receive a small business grant from the U.S. government. An average person may feel a little skeptical of any opportunity to get free money and may ask at least some of these questions: Is there really a catch to getting a small business grant? What exactly does the government get out of making an investment in small businesses? What can I do in order to obtain more general information and tips about small business grants?

It has been said that about 50% of all small businesses don’t make it beyond their first year. Why don’t small businesses succeed? Not enough funding and a lack of experience are a couple of the more customary reasons that small businesses aren’t going to make it beyond their first year. Why does the government give out small business grants to help entrepreneurs with startup costs if there is so much failure in small businesses? Why exactly does the government have such a high interest in small businesses? Small businesses likely represent ninety five percent of all employers in the United States. In addition, they contribute 50 percent of the gross domestic product of the country. Grants for small businesses are offered to business owners to promote economic improvement or growth. Three of four new American jobs are offered by small businesses.

The United States government doesn’t actually give out federal grant money to begin a small business. The Small Business Administration (SBA) is a Federal government agency that supports, protects the interests of, advocates, and provides resources small business concerns. The federal government has left it up to each individual state to appropriate funding by way of state grants to assist small businesses to thrive and grow. Small businesses are critical to the economic security of the U.S.. Keeping this in mind, the SBA has a mission to put money and time into helping entrepreneurs so they can start, grow, and develop their small businesses. Giving a support system to new businesses by awarding a small business grant is a small gesture when the economic development of the United States plays a role.

If you’re an entrepreneur, the U.S. government has small business grants so they can help your business to succeed. If you would like help finding more information about these small business grants, it would be a benefit to hear what Matthew Lesko has got to say about free money that might be available that could help your business to grow. His research shows that more than 1 million business owners receive small business grants each and every year. Grants like these may be available by way of the local government of your specific state. Keep in mind, that through assisting small businesses to develop and grow, the United States economy is going to grow and flourish as well. Small business grants are an incentive to business owners and to the economy of the nation as a whole. The more small businesses that are started, the more employment will also be created. In order to secure the advancement of small businesses, the government can help by providing small business grants as well as other resources that are necessary for small businesses to flourish.

About the Author: Find out about the best ways to get Small Business Grants! Matthew Lesko.com will show you ways to get available funding, regardless of your business’ income amount, credit rating or age! Look at this web site for a completely free preview: http://www.MatthewLesko.com now! For more information and tips about Small Business Grants, click here.

Karen Scharf asked:


Entrepreneurs often find it difficult to grow their small businesses. They struggle with the effort and expense involved in traditional marketing methods, and the limited budgets they have to work with. However, there are four extremely powerful and practically free marketing tools that we all have at our disposal, but we often over look.

Let’s take a look at one of the easiest techniques for growing a small business on a shoestring budget:

Take Advantage Of Customer Testimonials

The next best thing to customer referrals is customer testimonials. Testimonials help put your customers at ease. They break down doubt and buying resistance. Plus, the customer who gave the testimonial becomes more loyal (just like the customer who gave a referral).

We all know that testimonials are extremely powerful, but it still amazes me how few small businesses actually use them. Every single bit of marketing you do should include customer testimonials. Every sales letter, every display ad, every radio spot. Even your brochures and business cards will be more effective if they contain testimonials. So, from here on out, get in the habit of including testimonials on everything!

What’s that you said? You don’t have any testimonials? Well, start collecting them NOW by using the following tips:

1. Create a mechanism for collecting testimonials. A fill-in-the-blanks form works great in most circumstances. Be sure to ask for your client’s full name and permission to publish the testimonial.

2. Ask for a testimonial right away. This strategy has two benefits. First, the details of your service will still be fresh in your customer’s mind. Second, buyer’s remorse and refund requests will be reduced once the client has “taken a stand” for your service.

3. Ask for a specific testimonial. For instance, you can say, “Kathy can you jot down a brief description of how we took care of your squeaky brakes?”

4. Ask your customer to describe the problem she was having before using your product or service. This helps your prospect identify with the customer giving a testimonial, and also helps aggravate the pain the prospect is experiencing (aggravation is part of the selling process).

5. Try to get a picture of your customer to use along with the testimonial. Keep a Polaroid or digital camera handy for this purpose.

So, what should you do with all these testimonials once you’ve collected them? First and foremost, use them in every single bit of marketing that you generate. Here are a few more ideas:

1. Compile your testimonials into an “Important Tips” free report and use it as a lead generator.

2. Create a CD of audio testimonials that you can send to prospects.

3. Play a DVD of video testimonials on a loop in your waiting room. This is especially effective if you have testimonials about products or services that many of your customers aren’t aware that you offer. This makes great covert “advertising”.

4. Plaster your written, audio and video testimonials all over your website.

5. Post your testimonials on a huge bulletin board in your lobby and include photos of your customers if you have them.

6. Use corresponding testimonials in your advertising. Are you creating a coupon for a coolant flush? Include testimonials about how great your coolant flush service is.

7. Use complimentary testimonials in your advertising. Running an oil change special? Include testimonials about your tire rotation service.

And just like referrals, it is absolutely imperative that you come up with a special way to thank the customers who gave you testimonials. More than likely, the clients who give referrals and testimonials are your best and most loyal customers – and you want to keep it that way!

Barbara Tremblay Cipak asked:


Today, improving the image of the small business, or rather creating the appearance of a larger corporation, can be achieved by many small businesses through the implementation of a Virtual PBX System. The features of such a system are numerous, including the ability of the Small Business to connect to employee teams across the country, or create virtual departments within their business.

Easy and affordable to implement, the Small Business can readily compete today with the larger functionality of the Fortune 500 phone system used by larger corporations.According to a report written by Derek Leebaert, in Journal USA dated January 2006, on “How Small Businesses Contribute to U.S. Economic Expansion”, he outlines several interesting factors including, how “firms of 100 to 1,000 workers are spending money eight times faster on technology than are big corporations”. He also points out how “small businesses act as a shock absorber for fluctuations in employment caused by globalization and downsizing” by highlighting the fact that 53 percent of small businesses are operating out of an individual’s home. These businesses range from Hair Styling to Business Consulting Services, and more.

The Virtual Switchboard is the perfect example of the Small Business Owner jumping on the technology bandwagon to stay ahead of, or just compete effectively with larger companies. Useable features in these online systems can paint a professional image of a small company being larger than it physically is. Some features of the Virtual PBX include:

Multiple Extensions and Greetings;

Dial-by-Name Directory;

Customizable Music-on-Hold;

Answering Rules;

Flexible Call Forwarding;

Total control over Managing Incoming Calls.The Small Business Owner Can also set-up fax and voice mailboxes for employees, and can select a toll free number that is right for them. One of the more obvious benefits to the small business owner is their ability to live and work in one city and acquire a local number from another city.

Again, according to statistics provided from the above article, Fortune 500 companies now employ 9 percent of the workforce in the USA, versus the 20 percent employment ratio they provided in 1980. In the last decade, an average of 9.36 of the American population started their own business. Contrary to what many people think — ‘that new businesses are likely to fail’ — two thirds of all businesses started are still open after two years.

By implementing innovative production techniques from technologies such as the Virtual PBX, and generally stream lining operations, the small business can adapt faster to shifting economic conditions, and can, in most cases, successfully compete with the image of their larger business counterpart.

David Ogden asked:


One benefit the Internet offers you when starting a small business is your ability to customize it the way you want. You can also keep in the back of your mind that any mistakes that you make can quickly be overcome online.

One of the best small businesses to start is in affiliate marketing business. You can run this on the Internet and you can be set up to go with your own small business very quickly.

Let’s take a look at the two things you should keep in mind when starting a small business on the Internet as an affiliate marketer.

1. First of all you need to be aware of the various programs and products that are available to you. It really is to your benefit to spend some time doing some research on the market that you want to be in before you choose the products themselves.

You are looking for a market that has a lot of interest in it and then find a program that has a number of quality products to sell in that market. Of course you’re going to be looking at the commission structure to determine how much money you make as well.

2. From the very beginning put the emphasis in your small business on building an email list of names and email addresses. If you did nothing other than build a list and mail offers to it you can make an excellent income with the small business online.

There are several ways to go about doing this and you certainly want to give away free things in exchange for their contact information. Ebooks and reports work extremely well for this.

You’re much better off as an affiliate marketer to get the names of your prospects before you pass them through to your affiliate website. For this reason, you’ll want to use landing pages as well as have sign-up forms on your own personal website or blog.

The other thing to keep in mind when you’re building your email list of names is to develop that list into people who know you and respect you. This takes away the coldness of the Internet because it’s so easy to be nothing more than a stranger when you are working through email marketing.

These are two things to keep in mind when starting a small business online. Affiliate marketing is the best way to make money and building an email list is an excellent way to do affiliate marketing.

Gen Wright asked:


As the Internet continues to evolve it is presenting tremendous opportunities for the average person to make money. One opportunity that is not being totally capitalized on is the small business sector. Here are a few reasons why we think small businesses offer you a tremendous money making business opportunity if you will learn how to do it correctly.

It is somewhat astounding that many small businesses today still do not have a website of their own. They continue to operate in the old fashion way. This would include having an ad in the Yellow Pages, doing weekly advertising in their local newspaper, and relying on word of mouth for new business.

Even in rural areas people are becoming more accustomed to using the Internet to find what they need. Every small business that does not have an online presence is missing out on potential new customers.

Another fact is that small businesses who do have a website on the Internet are not marketing it in any way. There are several reasons for this including the fact that most small business owners have no idea how to market a business online.

This presents a tremendous money making business opportunity for a person who wants to develop it. You can start by contacting small businesses right in the very area where you live.

If they do not have a website offered to build one for them. If you are concerned that you do not have the skill to build it yourself, relax because you can outsource all of the work.

There are people all around the world who are willing to do things that you may not know how to do yourself. You can hire these people at websites such as eLance.com and pay them to build a website for your customer.

Your job is to find out what the customer wants, and then make the sale. Small business people are willing to pay as long as they see a value and trust the person that they are dealing with.

Another way you can make money with small businesses is to offer to market their business on the Internet. One way you can do this is to offer article marketing as a way to develop their online presence.

If you do not like to write articles, again you can outsource this by hiring an article writer. You can even develop a keyword list that is relevant to the type of small business that you are dealing with.

In summary these are a couple of ways that small businesses offer you a great money making business opportunity. You are only limited by your imagination and drive to go out and do it.

Gen Wright asked:


This report presents a comprehensive picture of the contribution of small enterprises in Ireland. The report contains data on the contribution of small businesses in industry, services and construction, as well as statistics on the labor, the knowledge-based economy and workforce. It also includes international comparisons.

In the report, a small business is defined as an enterprise which employs fewer than 50 people. Statistics on medium (50-249 persons) and large enterprises (250 or more people) are included for comparison.

Highlights of the report are:

Industry: Production and employment dominated by medium and large enterprises

* In 2005, four of the five industrial companies (81%) were small businesses with fewer than 50 employees. This company employs 50,000 people, slightly more than one fifth of total industrial employment. * The larger companies (50 or more persons) employed 181,100 people in 2005 and generated 93% of the total turnover in the industry. * The vast majority of small industrial firms were Irish owned (95%). Nearly 42% of larger companies are foreign-owned.

Services: More than 380,000 employees of small businesses in the service sector

* In the service sector, almost all companies (98%) were small. There were 82,100 small businesses, employing over 380,000 people in the service sector in 2005. That was more than half of total employment in this sector. * Small businesses account for nearly half (49%) of total turnover in the services sector, and generates a turnover of nearly ? 81.6bn in 2005. * Nearly half of small businesses in the service sector are the property of the family (47%). The vast majority of these family businesses employed fewer than 10 people.

Construction: Small businesses occupied two thirds of all people who work in construction

* According to the Quarterly National Household Survey, there were 253,200 employed in construction in the fourth quarter of 2005. Of these, 211,000 have indicated that they worked in small businesses (fewer than 50 employees), while 24,500 have indicated that they worked in large enterprises (50 or more employees). A further 17,600 not specify the number of employees to their jobs.

* Among the 253,200 people employed in the construction industry, more than 65% worked for very small concerns employing less tha ten people.

Salaries and wages: 54% of private sector employees in small firms earned between ? 10 – ? 20 per hour in 2006

* The average hourly wage in small businesses were ? 15.22 in 2006 compared to ? 19.38 in companies with 50 or more workers in 2006.

* The average annual salary for employees in a small business amounted to ? 32,453 in 2006. The average wage in large enterprises was ? 44,794 per year.

Knowledge-based economy: the larger companies have shown higher levels of e-government activities

* Small businesses generally not more modern information and communication technology than larger companies.

* Almost all companies with 10 or more employees were connected to the Internet that two-thirds of businesses with fewer than 10 employees to use the Internet.

Size of work: almost 56% of employment in small workplaces

* In all areas, 56% of jobs in workplaces where fewer than 50 persons were employed in the second quarter of 2007. A total of 1175800 people worked in small workplaces. Of these, 839,300 were employees, 216,600 are self-employed and 107,900 are self-employed with employees. These figures include agriculture and the public sector and the economy.

* Among the 316,300 non-Irish nationals in employment in the second quarter of 2007, less than half (47%) worked in small workplaces.

EU comparison, the value added in small construction firms in Ireland was three times the EU average in 2005

* Almost three-quarters of production in Ireland turnover was generated by large companies, while the EU average was 60%.

* In 2005, Ireland is recorded but the gross value added per employee of ? 51,600 in the distribution of services. The EU average was ? 33,000 per employee. * The gross value added per employee in the construction industry in Ireland was significantly higher than the EU average for all types of employment dimension.

lamara qoqiauri asked:


For the Support  of Small Business in Georgia

Content.

In the conditions of deep economic crisis and  during the period of extreme restriction in requisite  resources for economic investments of tendency of selecting priority in investing activities enquire upmost importance. According to these circumstances, small and average businesses must be admired in such system of priorities. It follows not only from conjectural, political  or ideological  purposefulness, but also from objective activities of social-economic conditions; Simultaneously it is also connected to the position perspectives of this field to solve vital questions of the country. (creating concrete atmosphere, increasing employment level and efficiency, treating and spreading technical decisions etc)  however, it is baseless to speak that small and average businesses in our country have any kids of advantages in distribution of investing resources, ` moreover, it often moves to the second place.

Financing has always been the urgent problem of small and overage businesses.  According to the social research of small industrial management, half of respondents had to use  their own savings in organizing these enterprises. Only more than a quarter managed to receive credits, but less than 20% – to attract depositors’ sources.

The  employers admit that, the first and main problem is finances and buildings and then follows cooperation with local authorities. However, investment always remains as the main problem in the activities of a particular firm.

Pressent Day Situation of a Small Business.

In western countries outnumbered commercial banks, insurance companies, branch funds, regional commercial departments of tuition structures stimulating small business, regional guarantees, outnumbered charitable funds and associations, actively support  them.

Due to not existed similar institutions, the development of small and average businesses is prevented. So it is quite natural, that development of small industrial net is still unable to form the commodity market. Nowadays supporting industrial activity has  no main basis in small and overage businesses. The situation of providing these enterprises  with material, energetic and financial resources has recently   been deteriorated; according to results of selective researches in 2000-2005, in order study small industrial business activities in industry, building and retail trade showed  that  nearly 40% from small industries have their raw and building material supplies reduced. The existing level of orders and resource  maintenance was estimated as “..below average”; however unlike large industries, homogeneous tendency  of economical situation in small and average businesses is distincted, e.g. during 200-2005, the amount  of employees and usage level of industrial capacity maintained sufficiently stable in small industries.

Although capital investments of small industries include sufficiently large amount  of  money (11% of investment realized at the expense of financial resources in Georgian economy. The small enterprise activity of industry in the field of investment is still exceptionally low.

Inquiries showed that among active reasons  about  restriction of investing activities, about 60% of  respondents  consider high level of taxation, 30% – high rate of inflation, above 30% general economic and political instability.

The leaders of small industries, critically characterize competitiveness of their products over 50 % of leaders  consider   it as “average” towards the internal market.

Leaders of examined small industries consider lack of their own resources. (75% from inquired people), high payment rate (over 60%), unaccepted conditions of investing and accounting as a main resistance for their  innovational activities.

Financing Sources of a Small Business.

Analysis of financing sources for small and overage business  shows that the most available for their activities are inner developing sources which are used by over 3/4 of industry, while only one from four, manages to abtain any kind of means from external sources. Enquiries show that their own small business incomes take first place among financing sources. It’s  proved by every two participants from three ones. On the second place are the founders of average business with their own sources;  (21,7%). And private credit takes the third place, used by 17,9% of these industries. Other sources are used by 10-15% of small businesses. Simultaneously over 20% of enquired leaders consider that their enterprises have no any developing chances. More complete idea about the nature of investing in small and average business field is given by the results; Researches on tendencies of small business investments. According to this data, leaders are those industries which direct their investments towards the equipment and transportation (57,5%); and the enterprises which use investments to fill their sources of circulation. take the second place (44,3%). A lot of enterprises use their sufficient sources in repairing building and commercials (38%). Over 20% of small enterprises spend their sources on their staff training.

Comparison of data according to the groups of small industries prove all the following differences connected   with specificity of a business field. e.g. small industries of trade fill their  sources of circulation, frequently (76%), but they stay backward in investment of human capital – only 8% of them provide staff training, whilst corresponding average index for all enterprises is 20,8%.

One of the main problems in small business development is their slight investment in the process of crediting due to existing high risks in this field. It  is caused by following factors: usually, small industries have no ability to represent absolute  guarantee independently over their responsibilities and there’s no complete system of guarantees and insurance of their investing activities.

Usually, personnel of small and average  businesses have no sufficient knowledge in economy, which is the main cause of those incomplete projects which are introduced by them. As for consulting service of business management and preparation of investing projects, as a rule it is excessively expensive for enterprises of small and average businesses.

The results show that in the process of providing crediting resources, leaders of small and average enterprises experience not only general inflexibility of crediting, but also discriminative policy of banks towards small and average businesses.

The main difficulty in the process of receiving credits is price restriction (very high percentage was mentioned by 47,6% of leaders of small enterprises); It is followed by the range of nonprice restriction – unpractical mortgage and  guarantees (21,9%), innaccessibility of investing credits (10,5%), restriction of crediting terms (14,3%) and subjective evaluation of discriminative conditions. Besides, the role of organizing factors is not sufficient.

The interests of commercial banks are not directed towards crediting of small enterprises due to their non-existing complete technologies of investment; Besides it claims to discuss numerous investing projects, though working procedures are highly  significant. Banks don’t take risks, due to their negative experience in disappearing of credited firms, no returned credits and hidden mortgages, including small and average businesses as well. Hence, due to controlling and providing insurance, they choose organizations having accounts in a particular creditor bank.

Banks avoid crediting of newly founded firms and insist on collateral security guaranteeing  a small enterprise. The level of percentage implies the level of risk that is significantly high for every small industry. Standard validities of given credits include  3-6 months period.

Thus, Georgian banks. like in western countries must inevitably develop assisted financial services for small and average businesses. First of all, it includes detailed treatment and examination of any kind of projects independently from credited funds and improvement for abilities of banks in estimation of loans. The same time, they must rely more on the knowledge of potential resources for enterprises and markets than in the amount of funds and guarantees.

Who Helps and How to Developa Small Susiness.

Noticeably developing non-governmental specific structures formed for supporting small and average industries are also of great importance. The first similar structure was founded in 1992. It was an agency, supporting small and average businesses. Its purpose is to increase industrial activity among the population with the  help of consulting, informational and expert services provided not only for small and average industries but for pioneer implcyers as well. It includes issues on economic, financial and taxation policy; recommendations about keeping a ledger; support for composing constituent documents; registration of enterprises and allowance of their activities; elaboration of a firm mode, teaching business; (hobbits based on special programmers, worked out  of the agency together with foreign experts). for  the successful development of their own activihes; (business planning; marketing; commercials; industrial experience etc); informational support for the operations of external trade. customs issues and other normative juridical problems. Agency constantly tries to expand its  own activities. It mainly includes issues on the support  of activity of small and average business industries. Special investing department is created in the structure of agency for this purpose, which is directed towards the preparation, training and conducting of recommendations for composing  business plans, investing projection and financial management; working and conducting of examination for investing projects; researches of their financing sources. The given department is an official agent of the federal fund for supporting small industries, that is directed to the selection of industrial projects for providing credits.

In the beginning, the functions of agency were distinctly oriented on the demands of developing small and average businesses in Tbilisi region, but now it has begun to play the role of informal-methodical – coordinative organizational structure throughout the country.

Realization of this role is significantly depended on the formation of corresponding regional agencies and their active participation in the country. Above mentioned activity of  the agency must necessarily be established by state departments.  Namely, it is advisable for the government to elaborate a special document about “regional agencies for supporting small industries”. In this document, it is necessary to be mentioned the labor financing scheme of the regional agencies’ net at the expense of assignation from the state budget. Formation of regional agencies supporting small and average businesses   is decisive to serve physical and juridical persons in creating small and average enterprises and to provide their effectiveness. Such schedule of services is defined by developing quality of agencies which may include practically all types of support for small and overage businesses including informational services,  legal advice and participation in investments. As a rule, the purpose of agencies is not receiving profits and that is why their quite high level of services  compared with ones of other organizations are relatively cheap, but in some cases it is  absolutely free of charge; if agencies function into contact with the government and authority organizations of all level. and are based on the assistance of these organizations.

Herewith, the first task is that the agency of small and overage business supporting, leads the work to form united  informational net of regional agencies, that will take active part in the field of modern informational technologies, highly quailfield organizations. It is a significant stage of business, for united as well as regional agencies. Practice showed that, distinct division is the most essential task for separate regional agencies and affective organizational development of their net. It implies the gradual development according to the accumulation  of organizational experience,  stabilization of financial situation and  equipment with modern organizational-technical means and so forth. At the some time, determined service must be formed gradually and  successively, not only in accordance with the principle of senseless expansion of above men toned factors, but also selecting  the variants which are the most profitable and essential for the agencies in this or that concrete region. It must be said that estimation of perspectives in small and average business support activities is connected with the fact, that its significance is constantly outlined by the central government of the country as well as regional authorities. Of course, it clearly gives the chance to make optimistic prognosis. Unfortunately, in reality, the existed mechanism to support small and average businesses can’t still put into practice not only present-day objective demands, moreover the tasks which are not only possible to be solved but should be , for the development of its investing activities.

Wat is the Programme of Small and Average Business Investment Support?

As it is know, programme realization of investment support in small  and average businesses, may have double substantiation. The first assistance of a small  enterprise development, represents the effective way of solving social and foremost, employment  problems. Thus, conception of social direction for financial support in small and average business fields, follows that, grant realization of socially useful functions in a small business, must be fulfilled by state and society. The second-progress of small and average businesses are significant factor from the standpoint of effective use of people’s economic resources. Due to such approach , from the position of market   economy, defined means for small and average businesses must be considered as profitable investments.

Nowadays, systematical crisis is proceeded in our country. Factual unemployment problem instead of falling is rising steadily and it requires of taking vast  and active measures for small and average business  development. Simultaneously, tensity of central and local budgets  and lack of foreign investments do not give chance to form such material-financial basis, that includes all the above mentioned factors.

It’s clear that the way out of exiting situation can be found in the treatments of conception, such is investing support (and realization)  of small and overage businesses, when all the possible funds used with this purpose will  be spent on forming organizations and such financial machinery, that has high level guaranteeing aptitude for the feedback of invested resources. For the realization  of this conception, several main directions can be singled out, for the fulfilment of investing activity in small and average businesses.

1. Scientific-analytical and informative provision development of investment support mechanism  in small and average business fields.   Here, main goal is to study priority system of financing  for small enterprises, according to essential directions of development  and substantiation of their realization activities with the purpose of reflecting aims at each level. (central, regional as well as small and average enterprises). Strategic research organization and financing, forming development conceptions and treatment of inter-active mechanism for investing support system in small and average businesses. In addition to the point above, the following must be taken into account.

The first and foremost, the mechanism for investment support in small and average businesses must be based on state structural and industrial policy, financing of private investments or definition of essential directions for stimulation, in the section of divisions,  subdivisions and enterprises – definition of so called dot priorities.

Second – towards the formation of mentioned mechanisms, maintenance of scientifically proved approach is accessible as far  as it reflects the real peculiarities of economic development and  investing processes in this or that region.

Third – Improvement of scientific -methodic and informative supply for investment activities, mostly in small and average businesses is simultaneously connected with the existence of investing projects of small enterprises in order to restrict existing risks. The most is financial, technological and marketing accompaniment, i.e. financial analysis, technical examination, and marketing research of investing projects of enterprises in small and average businesses.

2. Reinforcement of objective direction and transfer the obstacle centre of topping-up process of investment activities in small and average enterprises at regional level. It must be taken into consideration that, formation of regional politics of investment support of these enterprises, in accordance with this qualitative index of region economy, that creates the peculiarities for small and average business development and support. Simultaneously, the development level of industrial production, resourceful base, consumers market provision, regional problems of population employment and social  defence must be taken into account. Only complex  consideration of all these factors, gives chance to study those activities that provide attraction of owners of industries for people’s demands in the most suitable fields and stimulation of economic development, first of all at the expense of local possibilities.

Nonexistence of financing, due to the deficit of state and local budgets, is one of the main reasons, that  represents the obstacle for the outcome of central and regional programmers in supporting small industries. In such cases, it is advisable, not only subsidization of industries, but also the assistance for the development of infrastructure in small and average enterprises. (marketing as well as industrial). It must also be admitted, that the state should do its bit to establish special regional banks, innovational funds, informational analitic centers and such organizational-regional structures that serve small and average businesses and keep their interests by means of preferential duties privileged regime of transferring buildings to the possession, licensing, etc.

3. Development  of perspective forms of small and average business support and financing. In this field, for reinforcement of purposeful direction of investing process and raising its effectiveness, local administrations should orientate on the creation of main tendencies of progressive investment infrastructure for small and average businesses. Great attention should be paid to the following factors:

Grade 1. Development of crediting system for the purpose of increasing the number of financial support receivers and simplify the way of giving commercial credits to small industries, implies the expansion of financial institutes net, that realize small and average business crediting with preferential conditions. It includes: lowering interest, extension of crediting term, reduction of demands at the expanse of guarantee and free consultations.

Grade 2. Development of guarantee mechanisms of investing credits, given to small and average business industries must include given state guarantees  to commercial banks, which took part in financing these enterprises. Compensation of  some parts of interests rate. at the expense of commercial credits of banks, could be considered as the significant tendency of using guarantee reserves,  especially at the initial stage of project realization, when returning of funds is still delayed in small and overage business field, for the support of investing business activity.

Grade 3. Financial crediting mechanism of small and average business support, implies the assistance of development, including cooperation of small enterprises and establishment of new mutual – crediting forms of societies in crediting field.

Grade 4. Leasing  development, as the most perspective form, is inevitable process as the most perspective form for small enterprise investors. In industrial countries, leasing includes 25-30% of direct investments annually, but in our country it is not still well expanded. for moving complicacy centre of financial operations from circulation field into real sector of economy in leasing development, it is essential that the participation of reliable commercial banks and insurance companies to be actively stimulated.

Grade 5. Establishment of industrial and technological service  system  in small and average businesses, implies the consideration of this fact that, nowadays, actual reserve of  forming  some element of infrastructure of small businesses, can be usage of industrial capacities and properties of poor  industries, after their liquidation, reorganization and changing profile. (namely, it is possible to locate supporting units of small groups of ownership and enterprises on their base). Distinct experience of realization of such approaches is already existed in a number of regions from the standpoint of industrial-technologic support of industries.

Grade 6. The problem of developing modern tendencies in small overage and large business cooperations has already been matured, e.g. franchise development of small industries in Russia will help to solve many essential economic  and social problems. Here, first and foremost is meant the creation of new working places and broad involvement into business of all these people, who can’t manage it independently, without any support and getting suitable knowledge. In modern conditions, a range of obstacles arised against the franchise development in  Russia: non-existence of special normative-legitimate base and suitable informational insurance, owners insufficient knowledge of running business  by means of peculiarities of such skills and possibilities; nonexistence of sufficient consultative structures; and common financial-crediting problems.

In the development of modern tendencies of cooperation in large and average businesses, financial-industrial groups play a drastic role. According to the practice of development countries, such groups grow the stability of economy and give chance  to solve investing problems. It’s especially important  for the regions, where there are outnumbered branches and subbranches with high investment capacity. Such as: (fuel-energetic complex, wine-making, mineral waters, etc) and conversional enterprises. Financial-industrial groups can become the significant means of realization of state selective structural politics, as with the help of these large integrated structures, it  is easy to carry out rational manoeuvverability in industrial sector; among them, definition and support of prioritative  fields and enterprises.

Grade 7. It’s necessary to put ventural financing schemes into motion and develop investment insurance system in small and average business fields. During realization of the above mentioned schemes,  effectiveness of scientific-research and experimental-constructive works are significantly increased in small enterprises. Innovational campaigns of a small business, in most of the countries function by direct backing of the state, that really estimates their great national-economic importance and due to this is ready to assign corresponding  financial expenses. Innovational small enterprises, technological development funds, incubator of technologies etc. nowadays, in Georgia,  experiments of a range of ventural financing programmes realization, in small and overage business fields take place from foreign financial institutes. These are: European World Bank, Inter-American Development Bank, Development Credit Bank and so on. In the realization of ventural financing of small business, their experience can be acceptable for Georgian banks and financial institutes. In a country market, the most vital subject is insurance problems. In western countries, the insurance is considered as unavoidable mechanism of risk redistribution. Its increased level in small and average industries, causes a number of difficulties in the working process of insurance companies: herewith, simultaneously insurance and reinsurance, also guarantee systems of credit returning can be created. Perhaps, it is necessary, these systems to be supported distinctly by central and regional organs. (e.g. for specialized risk insurance companies, checking privileges or compensation of their loss). In perspective, Georgian financing crediting system must be filled with specialized net of risk insurance, connected with investment credit issue.

4. Establishment of united investment infrastructure in small  and average businesses. Specialization of financing-crediting system in small and overage businesses can be carried out in two ways: a) Investment. In the way of forming financial organizations, specialized at the expense of investing operations: 6) In the way of orienting, just connected with small business operations. Different combinations of the above mentioned directions of specialization for financing-crediting organizations in small and average  business fields, are also possible. But in any case, these organizations   must be given distinct privileges by  federal and regional organs. Unfortunately, for fear of next “financing pyramids”, at present, population don’t have  eny confidence in establishing these specialized investment banks and sharing investment funds, that assemble the private investors’ funds and after, these are put in small enterprises as well as in small and average infrastructural units as the investment portfolio. Thus, at initial stage ideological training for the sharers of small business and population is necessary. It’s not less important that such specialized investment organizations, for the  purpose of guarantee and getting confidence must be created on the initiative of these state, social and commercial organizations, which are highly qualified in successful running of small business industry field and have authority over this field.

5. The role of small and overage business support agencies in the development of crediting and investment mechanism of this field. In  the regions,  these agencies characterized by a range of peculiarities due to their status, that creates quite profitable atmosphere for them, during the corresponding service. First regional agencies are fully specialized in their field. With  the difference from many other organizations, for which small and average business support is either temporary or accompanying with essential business. These agencies can use their priorities for getting experience and advices, attracting highly trained  specialists, having permanent relationship with  administrative organs and  so  forth. That is why, the service of regional agencies is famous for its quality. Their consultations and other forms of small and average business support are high trained in all, and recommendations – useful and practically acceptable. Second, such agencies have right to use all the various forms and methods of small and average business support, that on its side securing the complexity of their service. Third, from the very beginning regional agencies are involved in federal, regional and local systems of small and average business support; That is very important for the successful realization of their registration, investment and other functions. Fourth, regional agencies take objective part in the whole net of intercommunicated and inter useful organizations, that is practically expanded all over Russia.

In the case of successful development of regional agencies’ net, this advantage can be essential for small and average business support, due to their specialization and professionalism,  treatment of regional politics, development of proper federal and regional programmers and also because of having participation ability in creating similar regional bases.

To maintain the special status and role of their organizations, the staff of regional agencies must take into consideration  well, a main point of the politics of small financial industries  support, that must be realized on different levels of state government, clearly elucidate all the varieties of useful forms, methods and institutes, necessary for the development of this politics; They must easily manage to orientate on the proper segments of investment-financing,  momentary-crediting and stock markets.In the formation and  realization of regional politics of small and average business subjects, the first condition for successful  participation of regional  politics is to know as much as possible about real financial demands of concrete enterprises. But the problem is not only in the manifestation of the demands of additional finances, but also in structural-problematical analysis of the  above mentioned and also in the manifestation of these small enterprises,  that require financial support most of all; afterwards, selecting the most long-range enterprises from the standpoint of future profitability.  (after getting financial support).

The role of regional agencies in deciding these  problems will be shown in working out unavoidable systematic-analytical instruments, in leading proper date basis, creating informational guide and findings fulfilled by general as well as individual orders on the basis of their own estimation. Above mentioned  orders can be as   from enterprises themselves, as from authority and government organs and financial-crediting organizations.

Other direction of activity of the above mentioned  agencies, according to the regional politics context of financial support of small industry, must be the research of possible sources of free funds in the region and in solving financial problems of small and average business or working out principal schemes of their usage in investments.

Evaluation of regional politics structure for financial support of small industry. without the arrangement of systematic monitoring of this sphere, its constructive and in-time correction is impossible.

During the time of special and regular researches of industries, regional agencies can evaluate  programmer realization results in small and average businesses – (for different level budgets and enterprises, which require assistance) in the concrete regions. Also, practical results of giving credits and establishment of regional taxation privileges for small industries.

Thus, regional agencies can take part in the realization and formation of regional politics of financial support in small enterprises and play a mediator role and such a performer, who has to carry out a range of  the functions, which were not paid any proper attention by any kind of elements of regional  infrastructure in small and average businesses. With the help of all these, they would like to assist the growth of investment activity of this field.

The Funkcions of Regional Agencies in the Development of Small and Average Businesses.

Functions of above mentioned agencies, for small and average business support, enquire essential  analysis  in line with the development of progressive investment forms; and in the realization part of prioritative tendencies  of its state support.

1. The role of regional agencies in the development of leasing and franchise. In the development of these progressive forms of small and average business investment, participation forms of agencies can be absolutely different. There are united activities together with the organs of federal level, for getting normative acts and working out methodical  materials; forming statements about taxation privileges, establishment of specialized data banks etc; Parallel  activities at regional level, that supplement central authority actions (e.g. initiative of sentence study about getting privileges for local tax payment , also, independent steps for the development of leasing and franchising.

Such steps represent the following: a) making contact to these firms in Georgia, which are potential organizations of leasing and franchise, working out typical documents jointly (contracts, methodic, checking procedures etc). b) organization of juridical, consulting and informational assistance. (Search and selection of partners, consultations, assistance in teaching and control, etc). c) organization of international cooperation (leaseholders and  franchisers ‘ search in Russia and abroad, assistance in market research, selection of potential clients, adaptation of foreign system of leasing and franchise to Russian conditions, assistance in arranging these technical questions, which include partners separation a long way off, corresponding..service..etc).

d) Organization of leasing and franchise propaganda. (Conferences, Seminars, Symposiums, Coarses, Press and Televise etc.)  Participation in establishment of their supporting centers and also in the development of leasing and franchise association in regional departments. e) Participation in establishing those specialized mediatory  firms, which duty includes: selecting of partners, working of different tasks of leasing and franchise assistance and development on the commercial basis; f) organizational   assistance for the participants  of leasing and franchise system by transmitting buildings and constructions with preferential conditions.

2. The role of small and average business support agencies in the development of industry in innovative field. These agencies can play an important role in getting contact among innovative firms and their providing with necessary  information; They can render assistance to such industries, expressed by investment support. from the side of agencies, main directions of small industries support in innovative sphere are the following: information base development in innovative small enterprises, assistance to establish such data base, were advices about the publication are given in the proper scientific fields; notifications about introduction of distinct types of techniques, about perspective development of scientific-technical approaches. b) rendering assistance of preparing investment projects, in estimation of perspectives of offered scientific-technical projects, in creation and introduction of new techniques and risk determination connected to above mentioned factors. c) in assistance of providing small innovative enterprises  with industrial buildings and equipment and for scientific-research realized by them. d) ensuring of small innovative enterprises with consulting and teaching services and keeping intellectual questions: e) assistance in finding partners and making contact with those enterprises, which work in a joining fields.

The  law on   “supporting the development of small enterprises”   adopted on  23  Jule   1999   is  considered to be the next step toward supporting  the  development  of country’s small and medium enterprises. The law helped to create “the center for supporting and developing small business”. The year 2002 was very important for providing Georgia’s business enviornment with legislative basis and adopting new normative acts.Much attention is presently given to the changes in the law on supporting small and medium enterprises.The law defines the status of small and medium enterprises according to workers’ requirement and annual turnover of their funds. In the same year small and medium business support program 2002-2004 was finished and adopted on president’s descreet.From then on the law has been improving,but the desirable result hasn’t been achieved yet.It is noteworthy that in 1991 there were 600 small enterprises registered .In 1994 their number increased to 12000,in 1995 to 17000 and in 2000 it increased by 20%, in the year 2006 the total number of small and medium enterprises amounted to 22000,thought 28% of the enterprises are inactive.[

In Georgia, mastering new skills for industrial development  in small and average business fields, gives chance to make conclusion that, this field of economy gives vast possibilities for effective investment and its future progress. But it is essential to reveal and put into practice energetically, the most  effective ways of using these possibilities. In connection with this , it must be said, that state policy must be more flexible in the tasks of forming own financial sources of investment, which are the most important at present, for the small enterprises. These industries must be given free rein, while establishing amortization norms, which defines the structure of internal financial  sources of investment (in the job of using internal sources of investments, except the state legislative  support, the effective consultative assistance of small business support organs is also unavoidable). Active  state support is very important for the attraction of external financial sources of investment by small and average business enterprises. Small business characteristics, such as flexibility and mobility, implies that small industries must have ability to increase their financial resources  fast, in any proper time. Its realization is only possible at the expense of borrowed funds. On its side, it includes organizational state assistance in getting funds, guaranteeing commercial funds given to small industries and accomplishing other supporting activities . It is natural that, the progression of this support must be accompanying process of state control reinforcement from the view point of using investment sources and overall development of small and average businesses.

Thuse, the analysis of current social- economic  conditions in Georgia and valuable experience gained from foreign countries show that during transitional period small and medium business must play on important role in forming national economy.

   Small business representis one of the main structures of business, that must establish market economy provide the creation of private business as well as new social class- small and medium business managers and help to overcome the crisis in economy.Small and medium business proved its viability. Their exsistence encourages the mobilization of labour and material resourses creation of jobs,quickly reacts on investments and meets market needs and takes part in state and local budget fulfillment process.

   We must hope that if we use the experience gained from foreign enterprises,we will be able to support small business. From this point of view the structure “Business incubations” is the most effective. Business incubations hasten the development of small business and reduce fail in business by 22%. This question deserved our particular attention because the conditions of small and medium business in Georgia are unfavorable. We approve the creation of business incubations for supporting the small enterprises that have been chosen for some reasons, and their support is exercised by providing them with machinery, services, consultanting and

education.They act to establish contacts between other sectors of economy,grow innovative  activities of business that makes diversification of economy possible and on top of all encourages the growth of small and medium business and their viability.

   Business incubations are flexible structures and merge with infrastructural complexes of region very well. The analysis of functioning business incubations based on world experience and especially of those,like Georgia  enables us to prevent negative consequences and over come current difficulties. Business incbations proved to be fruitful in Post Soviet area. In Russia,Azerbaijan,kazakhistan and Lithuania,but from this point of view Georgia has significanthy dropped behind. We have to do our best to introduce this progressive infrastructural elements in our economy.

Our recomrndations:

   Based on these recommendations we set the goals and main directions of small and medium business development in the following way:

1.    To create a stable enviornment for business with the help of business incubations.

2.    To create  new highly  paid jobs in small and medium business.

3.    To introduce specialized multilateral business incubations.

4.    To provide small and medium business with informational,consulting and financial – credit means.

5.    To Supporing the increase of  independent traders’ number in small and medium business.

6.    To meet the consumers’ needs immediately.

7.    Formation of the enterpreuners’ class that should become the stable guarantee for economic security and overcoming poverty.