INNOVATION IN BUSINESS ENTREPRENEURSHIP MANUAL

MANUAL INNOVACIÓN EN EL EMPRENDIMIENTO EMPRESARIAL

e) The financing of companies follows a logical "order or evolution".

It is a process that starts with funding from the "3 f's" (founder-partners, family and friends) and if all goes well, can end up in the capital markets when the start-up eventually becomes a large company. Debt financing instruments at this early stage correspond in almost all geographies to public financing (State budgets: ENISA, CDTI, etc. in the case of Spain) and in order for them to be adequate financing instruments for entrepreneurship they should have the following characteristics: • Long repayment terms to make debt service and amortisation affordable for the start-up. • Soft interest rate conditions, and even having a very low-cost fixed part and another depending on the start-up's results (example of a participative loan granted by ENISA-National Innovation Company). • The guarantees of the Project are sufficient, and no additional guarantees from the partners or promoters of the project are necessary.

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European Open Business School