Venture capital Market

Venture Capital Market consists of those wealthy individual investors, firms, institutions, and companies who provide venture capital for all stages of financing the entrepreneurial ventures- debt and equity capital.

Venture capital concept was developed in western countries to fulfil the requirement of providing non-conventional, risky finance to new ventures based on innovative entrepreneurship.

"Venture Capital is an alternative form of equity and debt financing made available to ventures initiated by relatively new and professionally or technical

qualified entrepreurs with inadequate funds, having new or untried technology or high risk, and exceptional growth prospects, i.e., a sustainable competitive advantage that helps maintain growth in sales and profitability, which is expected to potentially result in superior returns to the venture capitalist within specified period of time".

Entrepreneur at different places

1. Small scale enterprises:Entrepreneur as innovater: Small scale enterprises include those businessunits which are of small size kess capital and machinery investment, generally managed by its owner in a personalised manner until it grows to a certain level at which assisted certain managers may be added, without sharing in decision making, with its owner at a single risk bearer an claimer of the whole profits. Such enterprises serve a local or regional market rather than a national and international market.

2. Economic development: Economic development essentially means a process of upward change whereby the real per capital income of the country increased over a long period of time through growth and development of business enterprises. It involves initiating and constituting changes in the structure of business and society. These changes are accompanied by growth and increased output, which allows more wealth to be divided by various departments. Innovations play key role in the economic developnent. The economic history of the present developed countries like USA, Russia and Japan, as well as developing countries like India tends to support the fact that economy is the effect and entrepreneurship is the cause.

3. Generation of employment opportunities: Growing unemployment especially in qualified or educated youths is a teasing problem in many countries. The available employment opportunities cater to only a meagre part of the unemployed lot. A more explicit case for encouraging entrpreneurship lies in its employment creation potential. If hundred persons become entrepreneur and form new enterprises, they not only create 10 jobs for themselves but also provide employment to many more individuals, and to still more when their enterprises grow and develop.

Role of Entrepreneur

The term entrepreneur is increasingly being reversed for the type of individuals who are highly determined, confident, creative, and innovative , sales- oriented personalities, well in tune with trends and who are able to translate a vision in to real small business. These individuals are often viewed as undaunted risk-takes, but because they are in tune with trends, they are often visionaries who have a good understanding of things to come about in future, which make their risks more calculated than it may appear.

They drive us as agents of change and do not like the moments when things are running well-at that time, they desire some useful change in product, technology, or materials etc. The entrepreneurs are indispensible assets to the economy of the country.