Wednesday, 12 October 2016

Stock/share market for micro and small entrepreneurs/businesses

There can be micro and small businesses/entrepreneurs issuing shares to the public under a different machanism that is the company not being listed with SEBI but with a different government organization to issue shares to the public for the smooth running of their businesses or industries.

There are various types of companies like:

1. Private Limited Company having share capital
2. Public Limited Company having share capital
3. One Person Company having share capital

In One Person Company there is only one person  and there is a nominee. In Private Limited Company, there are minimum two persons.

In One Person Company the minimum investment of Rs 1 lakh (paid up capital) has to be there and similarly in Private Limited Company the minimum investment of Rs1 lakh (paid up capital) has to be there.

Both  One Person Company and Private Limited Company can issue shares to their relatives, family and friends. Public Limited Company are listed with SEBI and can issue shares to the public.

According to a financial institution, when the business is of 100 crores then one should come in share market capital because in these many years  he/she has established himself/herself but since a micro and a small entrepreneur/business man also gives employment to 3-5 persons like he keeps a sales man, a person to collect the money from the market etc and there are many families that are benefiting from a micro or small business/entrepreneurs, at some point when the business has established itself then instead of waiting for the company to become a 100 crore company, the micro and small company can be listed under different government body than listed instead of SEBI to come into share market capital. It is a viable concept that can be looked into by the Government.

According to a small scale entrepreneur, the small scale company should also have the possibility to issue shares to the public and that when the company is establishing itself not when the company has established itself. This should be there.

According to a micro businessman, firstly, it depend on the shopkeeper, whether he wants to come in stock exchange or not. But this (stock/share market) should be there. Everybody should get a chance to collect money from the market. Small business owner may become big business owner. The Government should make such rule. There will be hard work in selling even small share. Expenditure is involved and even selling small share it will require expenditure but it will be small.  All this will happen with faith. First the business should operate and establish faith in the market.

According to another micro businessman, there is advantage in this. All work will be done in systematic way. There will be customer satisfaction. There will be a chance to grow. This (stock/share market) should be there.

Micro/small businesses/entrepreneurs can comment: #microsmallentrepreneursinsharemarket #facebookentrepreneursinsharemarket #linkedinentrepreneursinsharemarket should there be a such a mechanism so that micro/small businesses entrepreneurs company issue shares to the public for the growth of their businesses? Please comment through the comment box.

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