Posts Tagged ‘Venture Capital’

Solutions

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December 1, 2010 · by NovaEconomics · US Manufacturing

The obstacles are real. Urgent assistance is needed. With politicians and leaders who really care about the future of America, we will prevail. There are many examples of what we need to win back small US-based Engineering and High Tech Manufacturing. A visionary leader can make a difference. Party affiliation is not as important as desire and an undying love for America.

What we Need.

  • A President that is able to convince Americans that Tomorrow Will Be Better than Today.
  • Leadership that encourages investments in America, investments in Tomorrow.
  • A Leader who can declare the recession is over, and that this is the New America
  • A Leader who encourages young and old to volunteer.  Giving time is often way more important than giving money.
  • Develop Pride in “Made in USA”.  Make this phrase mean something, not just words that can be trademarked and mean nothing.
  • “Made in USA” means Made with Quality.  Emphasize that Made in USA is accountability.
  • Add “Designing for US Manufacturing” to US college curriculums.
  • Make it a requirement that our US Government needs to buy products and consumables Made in USA
  • Americans to take back the leadership of our Country. Too many Americans rely on others, i.e., politicians, to make decisions relevant to America’s future. Americans need to “step to the plate” and save our Country. Politicians, by the very nature of being a politician, don’t have the necessary skills. We need people with conviction to do what is right.
  • Encourage Venture Capital to Invest in “Made in USA” startup ventures, and that a company that manufactures in the US is a company that you can trust.

Business Loans

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November 5, 2010 · by NovaEconomics · US Manufacturing

How often have you heard … if you need production funding, go to a bank? Well, banks and entrepreneurs just don’t work. Banks look for steady growth, and entrepreneurs by definition either grow explosively or die, but steady growth isn’t entrepreneurial. So, where does an entrepreneurial high tech engineering/manufacturer go for funding? Pretty much limited to venture capital. And where do you think venture capitalists go when the economy isn’t good? If you can tell me where they hide, let me know!

One of the most basic obstacles facing high tech engineering/manufacturing US-based companies is lack of capital. I think the feds know that, however their answer shows just how little they know about this business sector. Our government set up an agency called the Small Business Administration (SBA). And guess how this agency doles out money? Through Banks! The SBA claims they are understaffed and as a result depends on the qualification and eligibility programs instituted by local banks to qualify an entrepreneurial company for an SBA loan. Another government system that is broke!

It would be great if our government can figure out a way to directly fund small entrepreneurial high tech engineering/manufacturing companies without depending on banks. Interesting note, one Florida based bank requires a minimum of 3 years exponential growth before even considering a loan application, and by the way, that loan would be with a personal guarantee by the owner or owners of the company. According to the banker, the only companies they have even considered were legal/attorney firms. There’s an example of a service sector business that does well regardless of the economy!