Raising finance for SMEs
A Beeson Gregory case study

Page 1: Introduction

It was the European Commission that first coined the term ‘small and medium enterprise’ (SME) to describe businesses which employ less than 500 workers. This case study focuses upon the role of Beeson Gregory, a City based corporate adviser and stockbroker, which specialises in serving the needs of entrepreneurial and growing companies within the SME sector. The study examines the...
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Page 2: SMEs

The European Commission divided SMEs into three sectors: micro enterprises: those with between one and nine employees small enterprises: those with ten to 99 employees medium enterprises: those with 100-499 employees. The European Commission argued that the significant difference between SMEs and large organisations is that they operate in a business environment of greater uncertainty.  A...
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Page 3: Investing in SMEs

The MacMillan Committee report, in 1931, examined the financing of small firms and discovered it was extremely difficult to raise long-term finance in amounts of less than £200,000. This became known as the ‘MacMillan Gap’. Though, over the years, there have been a number of changes and opportunities in the ways that SMEs are financed, it is still the case that many smaller...
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Page 4: Trends in the provision of finance

One recent trend - management buyouts (MBOs) - has led to the search for better ways of financing SMEs. This is where the management of the business is given the opportunity to buy ownership and control of a firm, in the hope they can improve the productivity of the business. This has been a key reason for the growth of venture capital. Venture capital is risk capital, usually provided in the form...
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Page 5: Advice in action

Beeson Gregory works with SMEs as both a corporate adviser and a broker. This enables a close relationship with shared objectives based upon mutual support and trust. On the one hand, Beeson Gregory wants to make sure the company makes the right decisions, while on the other acting as a broker through which it identifies and satisfies the investment requirements of its client. For example...
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Page 6: Conclusion

Beeson Gregory helps SMEs to overcome the difficulties involved in raising funds to finance business activities by developing partnerships that lead to a variety of key investment opportunities for its clients. In a world where the external environment is constantly changing, Beeson Gregory assists its clients by providing them with stability and certainty. At the heart of this process is an...
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