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ed Kingdom. The report also explained that small to medium business varies according to the type of sector it operates. However section 249 of the Companies act of 1985 affirms that a small company will have to attribute at least two of the following characteristics;

Turnover less than GBP 2.8 million

Total balance sheet less than GBP 1.4 million

Employees less than 50

And a medium sized entrepreneur should operate under the following regulations;

Turnover less than GBP 11.2 million

Total balance sheet less than GBP 5.6 million

Employees less than 250

However in real practice, business functions that operate under small to medium terms, take on a range of working definitions depending on their business objectives (Leedy & Ormfod, 2001).

EIRO - European Industrial Relations Observatory

Formal And Informal Venture Capitalists

Venture Capital is also known as 'risk investment' (Langberg, 2004). Risk investment is invested as shares and the financier expects a superior “rate of return' to recompense for the amount of risk invested (Kelly & Hay, 2003). There are 2 main types of venture financing in the UK and they are; formal venture capitalists (large financial institutions) and informal venture capitalists (wealthy private investors commonly known as 'business angels').

The UK Formal Venture capitalism began in the 18th century (Harding & Bosma, 2007). During that time Entrepreneurs found affluent individuals to get support for their new businesses. This informal tradition of funding eventually formed a business trade by a number of venture capital firms created by many wealthy. Currently there are over 120 venture capital establishments in the UK, which fund billions of cash annually to the UK SME market (Frielinghaus et al., 2005).

Informal venture capitalists are mainly recognized as Business Angels who are wealthy individuals with a high class reputation of managing well run businesses (Masson & Harrison, 2004). As investors business angels bare a larger risk than venture capital firms as they have to be liable for the loss of the investment incase the business they invest lose out. On the other hand venture capital firms have many investors who can be hand in hand to one another in a bad situation (Masson & Harrison, 2004). Business angels are more common in UK where they tend to invest more on SME businesses where banks and venture capital firms decide not to, which will be further discussed under evidence analysis (Madill et al., 2005).

Business angels tend to be get more closer to the entrepreneur with a higher level of involvement in the firms operations, which shows that their choice of target firms are somewhat different than venture capital firms' requirements and business angels' investment decisions are made solely on the basis of the relationship between the entrepreneur and the investor (Masson & Harrison, 2002). Although entrepreneurs could use formal & informal investors at different stages in the business as shown in the (figure 1), it shows where business a本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。