USAID Investment for Business Resilience Activity’s Post

Moore & Van Allen (MVA) Finance Associates John I. Sanders and Yiran Jiang, along with Italian Counsel Stefano Bandini co-authored the article titled, “Financial Incentives Aim to Boost Italian IPOs.” As legislators in Rome finalize sweeping reforms of Italy’s financial laws and regulations and the EU Council just adopted the so-called “listing package” to increase attractiveness of EU financial markets, the national government and the most significant regional authorities are introducing financial incentives for small and medium-sized entities (“SMEs”) to list their shares. At the national level, the Fondo Nazionale Strategico Indiretto (“FNSI”), a closed-ended fund of funds managed by Cassa Depositi e Prestiti being introduced to deploy at least €700 million for investments into SMEs. The funds will invest in newly established Undertakings for Collective Investment in Transferable Securities (“UCITS”), with investments targeting SMEs. FNSI will underwrite up to 49% of the newly established UCITS. The UCITS will, in turn, invest 70% of the capital in listed SMEs with market capitalization of less than €250 million, including companies listed on the Euronext Growth Milan (“EGM”). The national government plans to finalize the necessary regulations by the end of the year and begin investing in the first quarter of 2025. Separately, the region of Lombardia, the commercial center of the country accounting for nearly a quarter of the nation’s GDP, has launched the Quota Lombardia initiative, which is specifically designed to provide financial assistance for SMEs seeking to list on EGM. Launched early last month, this program has a budget of €25 million to be spent over the next three years. Each eligible company can apply for a grant of up to €600,000 divided between costs related to the listing and consultancy services (e.g., financial due diligence, legal, industrial plans, investor relations, and tax assistance), including where such costs sustained in the three years following IPO. To be eligible, SMEs must be registered in Lombardia when applying for the grant; undertake to list their shares with a capital increase of at least 50%; and have a registered office and operational headquarters in Lombardia, which must be maintained for at least three years after the last disbursement of the grant to the recipient. Together, these national and regional initiatives provide both the capital needed for the listing process and a ready pool of IPO investors that will benefit from enhanced liquidity in the secondary market. We anticipate that SMEs will act on those incentives and there will be a marked increase in EGM IPOs in the coming years, particularly by SMEs based in Lombardia. https://lnkd.in/eyBfWZnH

The significance of maintaining proper records in business cannot be overstated. It is crucial for businesses to meticulously track their income, expenses, and taxes. Accurate record-keeping plays a pivotal role in safeguarding revenue, ensuring tax compliance, and upholding transparency and accountability. Consequences of Inadequate Record-Keeping - Loss of Revenue: Inaccurate records can result in untracked income, leading to revenue loss. - Tax Evasion: Insufficient records complicate tax calculations, potentially resulting in evasion and penalties. - Impaired Decision-Making: Without reliable data, businesses risk making uninformed decisions impacting their growth. - Compliance Challenges: Poor records can lead to non-compliance with tax laws, inviting fines. - Diminished Credibility: Businesses lacking proper records may face hurdles in securing investments or loans due to transparency concerns. Benefits of Effective Record-Keeping - Precise Financial Reporting: Reliable records aid in generating accurate financial statements for informed decision-making. - Tax Compliance: Proper records ensure correct tax assessments, mitigating evasion risks. - Optimized Cash Flow: Accurate records assist in managing cash flow efficiently, reducing financial instability. - Enhanced Trustworthiness: Businesses with meticulous record-keeping exhibit transparency, bolstering credibility with stakeholders. For businesses in Uganda seeking expert financial services, Homesberg Uganda Limited at Light House, Nasser Road, First Floor A02, provides comprehensive accounting solutions. 📞 Contact: - 0783127285 - 0752333507 - 0787036183 By prioritizing thorough record-keeping, businesses can effectively monitor their financial landscape, adhere to tax regulations, and pave the way for sustainable growth and compliance.

cont. Accounting Perspective: The accounting profession ensures that both external and internal debts are reported transparently. They help in tracking currency fluctuations and ensuring that interest payments are accounted for appropriately in financial reports. 5. Debt Transparency and Reporting Finance Perspective: Financial advisors stress the importance of debt transparency. Kenya must provide clear, detailed, and timely information about its borrowing, repayment schedules, and the terms of its loans. This builds investor confidence and maintains market access. Accounting Perspective: Accountants ensure compliance with public financial management laws by disclosing all financial liabilities, including contingent liabilities such as government guarantees on loans. This level of transparency helps in the accurate assessment of the government’s financial obligations. 6. Public-Private Partnerships (PPPs) as an Alternative Finance Perspective: Instead of relying on debt, finance professionals often advocate for Public-Private Partnerships (PPPs) as a way to finance large infrastructure projects. By leveraging private sector financing and expertise, Kenya can reduce the pressure on its public finances and limit additional debt accumulation. Accounting Perspective: PPPs introduce complexities in accounting, especially in recording government commitments and contingent liabilities. Accountants must ensure that such arrangements are recorded according to international standards and that risks are disclosed properly. 7. Leveraging Green Finance Finance Perspective: The global shift towards sustainable finance presents an opportunity for Kenya to access green financing options, such as green bonds, which often come with lower interest rates and favorable terms. These funds can be used to finance climate-resilient infrastructure and other sustainable projects, reducing the burden on traditional debt. Accounting Perspective: Accountants ensure that funds raised through green bonds or other sustainable finance mechanisms are allocated and tracked correctly to the appropriate environmental or social projects. This enhances transparency and investor trust in Kenya’s debt instruments. 8. Recommendations for Revenue Generation Finance Perspective: Finance professionals suggest improving tax collection and expanding the tax base to reduce the need for borrowing. Digital tax solutions, such as automated systems for tax collection, could be implemented to improve efficiency and reduce tax evasion. Accounting Perspective: Accountants play a role in auditing government revenue collection processes to ensure that taxes, levies, and fees are accurately recorded and that revenue leakages are minimized.

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SOME SIMILARITIES BETWEEN THE PUBLIC AND PRIVATE SECTORS. Transactions in the public and private sectors have some similarities, but there are also some key differences due to the different goals, constraints, and regulations that apply to each sector. #Public Sector Transactions: In the public sector, transactions are typically related to the provision of government services, payment of taxes, and management of public funds. Here's an overview of how transactions work in the public sector: 1. Government Services: Citizens interact with government agencies to access services like healthcare, education, and social security. These services are often provided free or at a subsidized rate. 2. Tax Collection: Governments collect taxes from citizens and businesses to fund public services and infrastructure projects. Tax payments are typically made through online portals, mail, or in person at government offices. 3. Public Procurement: Governments purchase goods and services from private sector companies through a bidding process. This process is designed to ensure transparency and fairness. 4. Grant Management: Governments distribute grants to non-profit organizations, educational institutions, and other entities for specific projects or programs. 5. Public Financial Management: Governments manage public funds through a system of accounts, ledgers, and financial reporting. This includes tracking revenues, expenditures, and assets. #Private Sector Transactions: In the private sector, transactions are primarily driven by market forces and the goal of maximizing profits. Here's an overview of how transactions work in the private sector: 1. Customer Transactions: Businesses sell goods and services to customers, who pay through various channels like cash, credit cards, or online payments. 2. Supply Chain Management: Businesses purchase raw materials, goods, and services from suppliers, often through contracts and negotiations. 3. Employee Compensation: Businesses pay employees salaries, wages, and benefits in exchange for their work. 4. Investment and Funding: Businesses raise capital through investments, loans, or equity financing to fund operations, growth, and innovation. 5. Financial Management: Businesses manage their finances through accounting systems, financial planning, and risk management to optimize profitability and growth. Key Differences : 1. Goals: Public sector transactions aim to provide services and manage public resources, while private sector transactions focus on profit maximization. 2. Funding: Public sector transactions are often funded through taxes, grants, and government appropriations, while private sector transactions rely on market forces and private funding sources. 3. Regulation: Public sector transactions are subject to strict regulations, laws, and accountability mechanisms, while private sector transactions operate within a framework of laws and regulations but have more flexibility.

𝗧𝗵𝗲 𝗥𝗶𝘀𝗲 𝗼𝗳 𝗜𝗻𝘃𝗼𝗶𝗰𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗲: 𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗶𝗻𝗴 𝗨𝗞 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄 🚀 In today's fast-paced business world, maintaining a healthy cash flow is crucial for growth and sustainability. Enter 𝗶𝗻𝘃𝗼𝗶𝗰𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗲, the game-changer for UK businesses! 📈 𝗪𝗵𝗮𝘁'𝘀 𝘁𝗵𝗲 𝗕𝘂𝘇𝘇 𝗔𝗯𝗼𝘂𝘁? 🐝 The UK has seen a remarkable surge in the use of invoice finance, a financial solution that allows businesses to unlock cash tied up in unpaid invoices. This innovative approach is providing businesses with the liquidity they need, right when they need it. Let's dive into why invoice finance is soaring: 𝟭. 𝗦𝘁𝗲𝗮𝗱𝘆 𝗠𝗮𝗿𝗸𝗲𝘁 𝗚𝗿𝗼𝘄𝘁𝗵 🌱 The invoice finance market in the UK is booming! According to UK Finance, more businesses are leveraging this flexible funding solution to keep their operations running smoothly and seize new opportunities. 𝟮. 𝗦𝗠𝗘 𝗟𝗶𝗳𝗲𝗹𝗶𝗻𝗲 🛟 For small and medium-sized enterprises (SMEs), cash flow can be a constant challenge. Invoice finance offers a lifeline, enabling SMEs to access funds quickly without taking on additional debt. It's a perfect match for businesses looking to grow and innovate. 𝟯. 𝗧𝗲𝗰𝗵-𝗗𝗿𝗶𝘃𝗲𝗻 𝗘𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝘆 💡 Thanks to the rise of fintech, the invoice finance process is now more streamlined and accessible than ever. Digital platforms are simplifying the experience, making it faster and easier for businesses to get the funds they need. 𝟰. 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗥𝗲𝘀𝗶𝗹𝗶𝗲𝗻𝗰𝗲 💪 In the face of economic uncertainties, including the impacts of Brexit and the COVID-19 pandemic, invoice finance has emerged as a resilient solution. It offers stability in turbulent times, helping businesses navigate challenges and thrive. 𝟱. 𝗚𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁 𝗦𝘂𝗽𝗽𝗼𝗿𝘁 🤝 With various government initiatives aimed at supporting SMEs and improving access to finance, invoice finance is getting the boost it needs. Policies encouraging alternative finance solutions are helping more businesses tap into this resource. 𝗝𝗼𝗶𝗻 𝘁𝗵𝗲 𝗥𝗲𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻! 🚀 The trend is clear: invoice finance is transforming how UK businesses manage their cash flow. Whether you're a startup, an SME, or a growing enterprise, it's time to explore how invoice finance can power your business forward. Stay ahead of the curve and unlock the potential of your invoices today. 💼💰 #InvoiceFinance #UKBusiness #CashFlow #SMEs #Fintech #BusinessGrowth #EconomicResilience 👉 Follow us at Cashbook Finance 🌐 Visit www.cashbookfinance.com

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