Is The Enterprise Investment Scheme All A Scam?

By Author: Harry Wilson.
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Everybody wants to get rich, but few can really risk investing in a scheme that is prone to high risks but with large returns.

Everybody wants to get rich, but few can really risk investing in a scheme that is prone to high risks but with large returns. Furthermore, there are times when most of these individual hesitant to take the risk have to be nudged in the right direction for their own good. If you own a new company and have tried getting investors on board, you know just how difficult a task this can be. However, with the enterprise investment scheme, it has become possible to get all the funding and capital that you can need from investors who are willing to invest in a higher-risk company.

There have been discussions on whether the enterprise investment scheme is really a scam or not. For most skeptics, the fact that one may have been duped in the past with shoddy investment deals may make the individual afraid to try out this scheme. However, what you should know is that the enterprise investment scheme is a government-funded project. For this reason, you can be guaranteed that you are not getting into ...
... a deal where you will only lose money. Additionally, the idea of the scheme is to provide investors with tax breaks and other incentives so that they can continue funding some of the high risks companies. The reason why the government initiated such a project was to help young companies get capital they require to run the business. It was also for investors who are jittery about how to find a way to invest their money.

How does the enterprise investment scheme work? The first thing you need to understand is if you have a new company, the investor will have to buy shares in your company. This will provide you with the much needed capital. To the investor, this will be an opportunity for one to get returns.
Before the company and the investor get down to business, both have to qualify for such an investment scheme. In the case of the investor, the individual must have a history of investing in such schemes, or the individual must have at one time invested in a company that is under such a scheme.

In the case of your company, it has to have eligible shares. These are shares of the company that will be offered to the investor. One important aspect of these shares is they will not provide the investor with preferential rights. The other qualification for your company to participate in this scheme is if it is unquoted or is listed in the Alternative Investment Market. Furthermore, you will be required to ensure your company has a certain amount of money prior to and after the investment.

In the recent past there has been a lot of sluggishness sin the investment market. Through the enterprise investment scheme, the government is trying to liven up this market and to offer both companies and investors with a chance at making money. For the young business, this is a good opportunity for them to raise capital. As for the investor, this individual gets to have a high return if the business is successful.
Resource: http://www.enterprisepe.com/enterprise-investment-scheme.php