Corruption and favouritism make it very difficult for startups and SMEs to access loans in my country. In Nigeria, you have to have a collateral or enough money in your account to get funds from the banks and government investment banks.

For hi-tech companies you can find external financing but for innovative companies operating in the traditional sectors it is very difficult yo find funding solution

Funding plays a major role and nowadays getting a funding for a project is much more difficult than research....

If ur project is vary from others and it might be useful for the society as a whole it increase a chances

All the best

In Sri Lanka, such funding can be obtained from both Venture Capitalists and Banks. However, the banks look at the proposals objectively if they have appraising officers having exposure to "Development Banking".

The Development Banks were the administrators of credit lines came through foreign funding agents viz., European Investment Bank, JBIC, IFC etc., which encouraged innovative projects of SMEs. Funding decision is subjected to

(1) Promoters' perspectives (Creditworthiness, Know-how, Experience as an entrepreneur, attitudes...),

(2) Marketing feasibility

(3) Financial viability, specially the debt serviceability within the period of refinancing stipulated by the foreign funder

(4) Technological feasibility &

(5) Risk mitigating plans.

The bank also assesses how the working capital is procured. Often the long-term debt to equity ratio is limited to 50:50, leaving a cushion to absorb unexpected liquidity issues.

In contrast, the Venture Capitalists invest in the forms of either equity or debt with involvement in decision-making and control process of the new venture.

In addition, there are established large business entities who extend seed capital and other forms of assistance (workshop, equipment, labor...) if the promoter could convince how the innovative proposal be incorporated into their productions.

However, many innovators follow "Lean Start Up Model" with limited funding arranged privately till they develop a marketable product / service.

Entrepreneurship is dead in 21st Century instead I called knowledgepreneur, why?

Knowledgepreneur is the possession of knowledge and applied experience of foresight for the creation of value and sustainable profits. It is the synthesis of ideas, capital and talents for the development and sustainability of 21st century economy (knowledge economy), which is the core foresight technology. It entails a huge investment flows into human capital as well as information technology. Knowledge is the integral function of intellectual capital and primarily a navigational tool of the future. Intellectual capital is the possession of the knowledge, applied experience, organisational technology, customer relationships and professional skills that provide products & services, with a competitive edge in the market to create the knowledge economy. The new source of wealth is not material; it is information, knowledge applied to work to create value. Foresight technology is the ability to make informed projections with the competitive advantages of the knowledgepreneur.

The rise of intellectual capital is inevitable, given the irresistible historical and technological forces, not to mention the investment flows, that are sweeping across the modern world and driving us toward a knowledge economy. Knowledgepreneur will come to dominate the way we value our institutions because it alone captures the dynamics of organisational sustainability and value creation. It alone recognises that modern enterprises changes so fast that all it has left to depend on, is the talents and dedication of its people and the quality of the tools they use. But most of all, intellectual capital is inevitable because it alone, of any model for measuring corporate performance, pierces the surface and uncovers true value. In doing so, it restores both common sense and fairness to economics. It is interesting to note that the English term “business” seems to connote, among other things, the ‘busyness’ of frenzied often undirected activity; the Swedish counterpart is ‘naringsliv’, which literally translates as “nourishment for life”. The inference from the above nomenclature: “busyness” produced entrepreneurship in 20th century economics; and while “nourishment for life” produced knowledgeprenuer in 21th century.

Co creation of value

Standardization makes it hard for companies to differentiate themselves from competitors. Today, markets are more fragmented; consumers have unprecedented access to information and networks. In today’s economy, businesses need to continuously reinvent themselves in order to adapt to increasingly complex and dynamic market realities.

I am glad that interesting answers to the above question appeared.

Do innovative startups in your countries easily obtain external funding for their investment projects from commercial financial institutions?

The question inspired an interesting discussion and interesting conclusions that could be an inspiration to continue research in this area.

The answers given are very scientifically inspiring. In my opinion, it is good that there was a discussion in the question of this query.

Therefore, I am still reading the answers, following the interesting discussion.

Thank you for your answers. I invite you to further considerations, to continue the interesting discussion.

Corruption and favouritism make it very difficult for startups and SMEs to access loans in my country. In Nigeria, you have to have a collateral or enough money in your account to get funds from the banks and government investment banks.

Adedipe, your fact is right but not final.

I run a start-up from my doctoral thesis is agriculture and environmental biotechnology. Value drives intelligence. Set-your goal and co-create value and your costs of setting up a start-up will reduce. Currently planning a training in Madrid, Spain in collaboration.

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In China, if you are a university student, you can get some investment from the government.

The only resource in the world with collective intelligence is innovation. It is when value is placed on creating wealth from knowledge; then , society can move forward.

What is frugal innovation?

Frugal innovation responds to limitations in resources, whether financial, material or institutional, and turns these constraints into an advantage. Through minimising the use of resources in development, production and delivery, or by leveraging them in new ways, frugal innovation results in dramatically lower–cost products and services. Successful frugal innovations are not only lower in cost, but outperform the alternative, and can be made available at large scale For many people, frugal innovation may be equated to the creation of cheap, low–tech products. Four features of frugal innovation are worth exploring in detail, especially since they run contrary to this received wisdom:

i. First, it entails making better things, not just cheaper things.

ii. Second, frugal innovation extends to services, not just products.

iii. Third, frugal innovation is about remodelling, not just de–featuring.

iv. Fourth, low cost does not mean low–tech: frugal innovation can require, or be combined with frontier science and technology.

Frugal innovation is a distinctive approach to innovation both in its means and its ends: Means: (The methods and techniques involved in creating frugal innovations are distinctive ) Ends: (The nature of the products, services or processes developed are distinctive Successful made available at large scale ).

Dear Friends and Colleagues of RG

If someone in your country thinks about innovative new types of products or services, technological innovation, and innovation in the field of Pre-idea 4.0, is there no problem with finding external financing, i.e. obtaining financial capital for the implementation of this developed innovation?

What types of external financing sources dominate your country in terms of financing the development of innovative startups?

Please reply

I invite you to the discussion

Best wishes

Innovative start ups in my country have had a great bearing on the job market especially after the sanctions imposed by America and they receive adequate funding both from the government and commercial financial institutions.

Unfortunately, for innovative startups, the possibilities of external financing are limited, as banks are reluctant to provide investment loans for the development of a newly-started startup. In addition, banks can not easily assess the level of credit risk in a situation where the surveyed economic entity does not have a history of its functioning, because it has just been established and for the development of production based on innovative technology or starting to produce innovative products, offering ion-innovative services is looking for financing. Innovative startups often finance their development without bank loans, making use of investment support from investment funds specialized in investments in high-risk business ventures, using financial support from business angels, public funds supporting the development of innovation and entrepreneurship, issuing securities, etc.

What's your opinion on this topic?

Please reply

I agree with D. Prokopowitz. Thr situation in Croatia is similar.