Question
Question 14 All of the following are major sources of capital for SMEs except: Business angels and crowdfunding Owners' funds and funds from Family and friends Public share issue Leasing and overdrafts
Answer
4.7
(213 Votes)
Wallace
Veteran · Tutor for 11 years
Answer
Public share issue
Explanation
## Step 1: The problem asks to identify the statement that is NOT a major source of capital for Small and medium-sized enterprises (SMEs). The listed options are: Business angels and crowdfunding; Owners' funds and funds from Family and friends; Public share issue; Leasing and overdrafts. ## Step 2: It's significant to note that the financing sources for SMEs can overlap though, there exists an exception to be identified from given options.## Step 3: SMEs are typically characterized by their limited size which restricts them from opting for larger service like a public share issue. They usually start with their own funds (owner's funds), gather funds from friends and family; Business angels and crowdfunding platforms are also popular financing forms; Leasing and overdrafts can also act as short term funds source. ## Step 4: Among the four options listed, public share issue doesn't simply align with the trend of SMEs as it is commonly pursued by large companies or those preparing for substantial growth, requires significant procedures and costs which limited-size firms like SMEs might not be able to bear.