Small to Medium Sized Entreprises (SME’s) fueling economic growth
SME's often are not offered funding from banks and other formal lenders due to size and risk of insufficient growth. When entrepreneurs do secure a loan, they often face extremely high interest rates.
Small to medium sized enterprises (SME’s) play a major role in most economies, particularly in developing countries. According to World Bank, “formal SMEs contribute up to 60% of total employment and up to 40% of national income (GDP) in emerging economies” with numbers increasing significantly when informal SMEs are considered. Researchers predict 600 million jobs will be needed in the next 15 years, particularly in Sub-Saharan Africa. However, SMEs lack access to capital which increases failure rates and stagnation, making jobs unavailable for the thousands of people currently unemployed.
Einstein Rising recognized there was a gap that was not being filled. SMEs weren’t receiving the business support and resources needed to build sustainable and viable businesses. These inclusive methods empower individuals to assess their community’s problems and needs and find local solutions using their own strategies.
Initial investments into the Einstein Rising developed enterprises are start up capital or seed rounds. Direct investments from Einstein Rising range from $5,000-10,000. Outside investor are advised to make investments, convertible notes or lower interest loans at $10,000 or more. We strongly advise our entrepreneurs agains high interest loans for individuals, groups or mainstream lending organizations such as banks.
Our seasoned entrepreneurs seek Series A investments ranging for $15-75,000 from investors.
Social Enterprise Capital Raising (SECR) begins after graduating from our 3-month business plan development intensive. The entrepreneurs who graduate from the accelerator program often need to raise funds to facilitate growth from the start-up phase to the expansion phase. The programs staff and board of directors evaluate the new business and determine if it is ready to launch. If so, they can participate in our bi-annual pitch day. Investors and funds come to hear the new entrepreneurial ideas and the intention is to match them with potential investors.
Each participant is given five minutes to pitch the business and its projections. Einstein Rising provides staged funding from $5,000 to $10,000 USD to the most impressive entrepreneurs. However, the graduates with higher capital requirements are referred to the program’s funding partners which include impact investors and funds.
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