Wharton Panel Debates India vs. China

A panel of Wharton faculty and experts in emerging markets private equity recently debated the relative advantage of private equity investment in India vs. China. India has solid underpinnings for economic growth, including a democratic government, a strong education system, widespread knowledge of English and a deep pool of expatriates experienced in Western businesses, according to the panelilsts. Wharton Professor Jeremy Siegel suggested that India's "soft" attributes, such as a democratic government and a free press that is rooting out corruption, outweigh China's more impressive investments in "hard" infrastructure such ports, plants, and transportation systems. Siegel is also concerned about China's system of "guanxi" in which business is conducted more through elaborate networks of relationships than on merit.

Small Business Administration Looking to cut Microloan Program

For the third year in a row, the Small Business Administration (SBA) is looking to cut its microloan program, and once again the Senate and House are lining up against it, the "Wall Street Journal," reports. The Microloan program provides funding to nonprofit community-based lenders who, in turn, lend and provide technical assistance to small-businesses. The SBA contends that microlans can be done more efficiently through its existing 7(a) loan program, while critics contend that most individuals who apply for microloans lack the credit scores needed to qualify for the 7(a) loan program.

Pick the Financing that Meets your Needs

Pam DeLissio was able to borrow to finance the $2 million acquisition of Pennsylvania Online, an Internet Service Provider (ISP), which suited her need to not give up equity. Because the business she was acquiring had predictable cash flows from subscriber fees, she was able to accurately compare the future loan payments to the cash flow from operation of the business. The May 2006 issue of "Entrepreneur Magazine" gives other financing tips: 1) The first step to raising the right kind of money is to decide between debt and equity 2) use short-term loans for short-term needs; long-term loans or equity for longer-term needs, 3) don't invest money in any project that won't generate enough profit to more than cover the loan payments, including interest.

If it Sounds too Good to be True....

Beware of individuals who claim they know of funding sources that do not have to be repaid, or that they will connect you with lenders, despite your poor credit record, past bankruptcies or lack of assets. These and other common scams are outlined for "Business Week Online," by David Weiss, president of the Better Business Bureau serving greater Cleveland.

NYU Entrepreneurship Conference on April 22nd

The 10th Annual NYU Entrepreneurship Conference on April 22nd will feature Paul Orfalea, founder of Kinko's, and Kenny Dichter, Founder & CEO of Marquis Jet as keynote speakers. Twenty breakout sessions will cover such topics as "Pricing & Profitability", "Small Business Essentials", "Writing an Effective Business Plan: Steps to Ensure Success" and "Getting your Business Started: Strategic Alliances & Bootstrapping." The conference will run from 8am to 6pm, admission is $25, and the location is Schimmel Auditorium at Tisch Hall on the NYU Campus in Manhattan, 40 west 4th Street, between LaGuardia & Mercer.