Poverty and Social Stratification Essay Example for Free

Poverty and complaisant Stratification EssayAbsolute poverty corresponds to the situation wherein the individual soul cannot last or live due to lack of basic needs or resources such as food, water, clothes, medicines and the likes. On the other hand, Relative Poverty is the situation wherein the person could not satisfy his personal wants but this does not imply that the person is not going to survive. Social Stratification simply denotes the systems of layers and/or divisions made in the society that shall reflect their relative poverty or wealth. It is not focus in the individual person but instead refer to a bigger group of people. The different kinds of Social Stratification argon class systems, caste system and slavery systems. Today a so-called Global Stratification last that categorizes each country according to their economy, population and wealth or national income. The most industrialized countries relatively are the wealthiest, their economy are mostly capitalist. The industrializing or otherwise known as developing countries have much lower standard of living and income than the industrialized.The least industrialized countries are the most poverty stricken. It includes bulk of the South East Asian, Latin America and most of Africa. Most analyst believes that the economical growth of a country lies on raising the social stand of women, because in most industrialized countries women are given tinct opportunity like men while in the least industrialized countries women are usually regarded to have lower social status and capabilities than men.Uplifting the standing of men in a society would generally increase the labor force. Educating women would create women who are as much competitive as that of men. This type of women would be able to compete with men in a capitalist setting. Only when there is an equal treatment between men and women could a society fruitfully developed. Otherwise, women would be stagnant part of the economic system. The more players there are in an economic system the faster is the economic progress since there are more participants.ReferencesRelative and Absolute Poverty. Retrieved on November 9, 2006. Retrieved from the World Wide Web http//www. qvctc. commnet. edu/brian/soc/sld027. htm Global Social Stratification. Retrieved on November 9, 2007. Retrieved from the World Wide Web http//72. 14. 253. 104/search? q=cachejmq-xfTAm0UJwww. ilstu. edu/jeweinz/soc106/notes/ch7notes. doc+global+social+stratificationhl=tlct=clnkcd=1gl=ph

A Separate Peace Essay Example for Free

A Separate Peace EssayA Separate Peace tells the story of a sixteen-year- doddery boy at boarding school in New Hampshire during World War II, and the mixed feelings of admiration and jealousy he harbors for his best friend and roommate. Things get messy middling fast, as you might expect from a bunch of ill-supervised adolescents. John Knowles novel, often compared to Catcher In The Rye, he raises a question about competition amongst teens. arguing is supposed to be healthy, but Knowles questions when do you draw a line between a fruitless rivalry and wanting to win at all in all costs. Knowles uses themes of friendship, individuality and youth to establish quite clearly that knocking your best friend out of a tree is on the wrong side of that line. A Separate Peace focuses on the friendship between two sixteen-year-old boys, and its complicated. Friendship is a combination of admiration, respect, jealousy, and resentment.For all the camaraderie between them, these boys are still operate by good old healthy competition, which at times can end up being, well, less than healthy. Friendship blurs identity, as one boy begins to slang the life of the other. Narrator factor has an inner struggle with himself trying to decide if he pushed best firend Finn off a tree, shattering his leg and dreams, on social function or not. In the book he says It struck me then that I was injuring him again. It occurred to me that this could be an even deeper injury than what I had done before.I would have to bum out of it, I would have to disown it. There are two ways to interpret this passage. Either this is one of Genes greatest moments of honesty or its all the same another moment of justification. Knowles leaves it to the reader to decide if Gene would rather live with his shame than hurt Finny by revealing the truth, or if he is pretending he doesnt want to hurt Finny in order to recant the truth and save himself from persecution. In A Separate Peace John Knowle s explores the difficulties with understanding ones own identity during adolescence.Identity is complicated enough as the narrator enters adulthood in a time of war, but a difficult friendship with Finny leads to a boost confusion of identity. Attempting to alter identity serves a number of purposes in the book, from escaping transgression to living through others to massing with insanity. Gene begins abandoning his identity and assimilating that of Finny because of the would be the guilt he feels for ending his Olympic dreams. Finny inte ride outed in turning Gene into a version of himself for the very same reason.Furing Finnys funeral Gene says I did not telephone call then or ever about Finny I could not duck a feeling that this was my own funeral, and you do not cry in that case. If Gene did in some way become a part of Finny, then part of Finny lives on in Gene. Gene alludes to this when he says that he still lives his life in Finnys created atmosphere. In the book yout h exists in its own environment. Knowles physically, mentally, and emotionally isolates it from the rest of the world.In doing so growing up becomes the transition from the sheltered environment to the harsh realities of things like war, hatred, and fear. In the book while taking a walk Gene does a little introspection stating levels of reality I had never suspected before, a kind of thronging and epic grandeur which my superficial eyes and cluttered mind had been blind to before. They unrolled away impervious to me as though I were a roaming ghost. Essentially Gene has moved into the adult world. In doing so he is leaving his youth behind.That sense of emergence is reflected as he considers his old self, his younthful self, dead. Nearly all the major characters in the book attempt to alter identity but these attempts ultimately fail and then the characters are forced to deal with themselves, actions, and personal identities. Knowles cleverly uses the title of the book in order to explain the overall It wasnt the cider which made me surpass myself, it was this liberation we had torn from the gray encroachments of 1943, the escape we had concocted, this afternoon of momentary, illusory, special and separate peace. These lines offer meaning, and this one with a less militaristic meaning.Essentially in the book Knowles has created a peace that is separate from the rest of the world, isolated somehow, protected. Like the youth at Devon school? The rest of the world is at war, but Gene and the other boys at Devon have achieved a peace outside of that war, a peace that is separate from it.

What Happens in the Sacraments Essay Example for Free

What Happens in the Sacraments Essay1. What does the Churchs sacrament of the Eucharist celebrate?The Churchs liturgy celebrates the Paschal riddle of Christ.2. Redemption is the action of Jesus Christ whereby he paid the price of his own Death on the cross to save us from sin and therefore return us to new, eternal career in union with God. In the Eucharist we proclaim the mystery of our Redemption.3. True or False? In the liturgy we remember and participate in the events that accomplished our Redemption. True4. What is a central root word of the spiritual writing of Blessed Dom Columba Marmion, O.S.B.? Explain. A central theme in his writing is divine adoption5. In the Eucharist Christ communicates the fruits of the Paschal Mystery. Through faith and our participation in the sacraments, every facet of our lives becomes intertwined with the life of Jesus as we grow in union with the Blessed Trinity.Pages 32 37 Christ Acts through the Sacraments6. True or False? The Apostles we re empowered to mother the mission to teach and baptize hatful of all nations on the Jewish Feast of the Ascension. FALSE The Apostles were empowered to begin the mission to teach and baptize people of all nations on the Jewish Feast of Pentecost.7. The experience of Paraclete forever changed the Apostles as they became enlivened, rejuvenated, and filled with courage. They spoke openly to the Jews from every nation who had come to Jerusalem for the celebration.8. The holy place Spirit continued to be present in the Apostles and they became sacramental signs of Christ. Through Apostolic succession they entrusted the power and authority of the Holy Spirit to their replacements.9. True or False? The events of our Salvation occurred only once, but by the power of the Holy Spirit the liturgy makes these events present and real for us today. True10. God the give is the source of the blessing we receive from the liturgy. Our response involves recognizing Gods blessings in the story of creation, His covenants with the Chosen people and finally in the coming of Christ.

The bone disorders

The ram complaintsIntroductionThere be many different types of prep ar disorders and these rear end have vast implications on a patient suffering from any particular one of these pearl disorder. There 7 principal(prenominal) categories of fig up disorders listed below, each(prenominal) of which impart be discussed in detail. genetic (inherited) disorders, i.e. chondrodystrophy, Osteogenesis progressivea. Nutritional disorders, i.e. Rickets, Osteomalacia. autoimmune disorders, i.e. Rheumotid Arthritis Degenerative disorders, i.e. Osteoarthritis. Bone tumors, i.e. primary winding Bone Cancer, Secondary Bone Cancer. Hormonal disorders, i.e. Osteoporosis. Pagets complaint.Genetic (inherited) disorders.Achondroplasia.Achondroplasia is genetic disorder and is the main type of short-limbed dwarfism that takes place in humans, bechancering amongst 1 in 15,000 and 40,000 live births. It has been estimated that about 90% of cases of osteosclerosis congenita argon sporadic, and on average, there is a rise of paternal age at the moment of conception of affected individuals (Vajo et al., 2000).The literal meaning of achondroplasia is without the composition of cartilage, and sufferers have fuss with wad growth. Achondroplasia affects in general long uprises e.g. legs and arms. It is an Autosomal Dominant Gene Defect (ADGI), and leads to the conversion of cartilage into bone. It occurs when one of the 22 non-sex genes is mutated, and this mutated gene has at one time been identified to be located on chromosome 4, which is know to be the Fibroblast Growth Factor Receptor 3 (FGFR3).SymptomsAchondroplasia is typically distinguished by the brass of a long, narrow trunk and short limbs. Some other usual symptoms of achondroplasia let in hyperextensibilty of words in particular at the knees and hands, barely the rotation of the cubital word is limited as well being unable to fully extend. Sufferers of Achondroplasia normally have a large head, short broa d hands, and suffer from hypertonia (poor muscle tone). Spinal cord muscular contraction at the cervicalmedullary junction is another typical feature of achondroplasia patients (Horton et al., 2007).The location of the mutated gene associated with achondroplasia was mapped to chromosome 4p16.3 in 1994, and this was followed briefly after by the identification of the heterozygous mutations of FGFR3 (Rousseau et al., 1994).It has been further discoered that children that have FGFR3 mutations, they parents generally do not have the FGFR3 mutation, and there has besides been a arduous association between advanced paternal age, in particular over 35 age of age.DiagnosisBecause the symptoms of achondroplasia are very distinguishable, the diagnosis at birth should not be a problem. However, it has been estimated that about 20% of individuals are not diagnosed with achondroplasia at birth (Trotter et al., 2005). A common method that has been engaged and widely used for the diagnosis o f achondroplasia is prenatal ultrasound. This method detects payoffed foetuses in the third trimester of pregnancy.The diagnosis of Achondroplasia so-and-so be carried out via CVS (Chronic Villus Sampling), followed by molecular gene attempts. CVS is a stress that is carried out before birth, in which cells are inspected. Molecular genetic testing is carried out in order to unwrap feasible mutations.TreatmentThere is no clear interposition for achondroplasia, and there are many tests that are ongoing in order to do father one. The use of human growth internal secretion has been proposed as a possible method of takement. Tests have shown that there was an initial step-up in growth govern of subjects with achondroplasia, nevertheless, the long-term benefits of such(prenominal) treatment have not been made clear, and many experts do not recommend it (Horton et al., 1992).In order to increase the stature of achondroplasia patients, surgical limb lengthening is another propos ed method to benefactor achondroplasia patients. The typical method compromises of different bones being broken, i.e. femur, tibiae, and humeri, after which orthopaedic appliances are used in order to carry out slow stretching during the healing process. Although this method increases the standing height of the patient, this method is likewise not recommended receivable to the many complications arising from it. These complications include, the need of repeated surgeries, wound infections and problems arising from the stretching of skeletal tissue such as blood vessels.Osteogenesis Imperfecta.Osteogenesis imperfecta is a bone disorder causing imperfect bone formation. It effects roughly 1/5,000 to 1/10,000 individuals (Sillence et al., 1979). It occurs as a result of a poor quality of collagen or a lack of collagen production, and after part lead to fragile bones that are easily broken and have a low bone mass. Another distinguishable characteristic of osteogenesis imperfecta pa tients is an s-shaped spine that roll in the hay eventually break.Osteogenesis imperfecta occurs as a result of mutations in the genes that encode the chains of type I collagen. Type I collagen is the main protein build in bone. genetically inherited cases of osteogenesis imperfecta normally show very small-scale symptoms. However, spontaneous cases are often more repellent.SymptomsThe symptoms of osteogenesis Imperfecta range in severity, from intrauterine fractures and perinatal lethality, to very mild fractures.DiagnosisThe diagnosis of osteogenesis imperfecta in individuals with a family history of the disease is rather simple, but more difficult in those that do not have a family history.Generally osteogenesis imperfecta is diagnosed clinically, and based on the physical symptoms associated with the disease Osteogenesis imperfecta keep be diagnosed via a collagen biopsy test, which is a new method. This test is known to identify 90% of osteogenesis imperfecta cases. sonogr aphy is another method that stand be used for diagnosis, and can detect more arduous types of Osteogenesis imperfecta, even at the foetus phase and similarly 16 weeks into pregnancy.Test such as those that include culturing cells, and observing the collagen produced can also be carried out, as well as using blood samples to examine mutations of the collagen manufacturing genes. Although these types of tests can be useful in the diagnosis of osteogenesis imperfecta to some extent, they are generally no more than 85% accurate.TreatmentCurrently there is no known cure for osteogenesis imperfecta. However particular emphasis has been placed on prevention on injury and maintaining healthy bones particularly in unexampleder children.Supplements of calcium and phosphorus help increase bone density. to a fault Biophosphates are used, and these are drugs that help decrease the rate of bone resorption. Biophosphates have been clearly shown to prevent bone fractures from occurring and als o increasing the bone strength and density. Growth hormones has been previously proposed as a possible treatment for osteogenesis imperfecta (Kruse and Kuhlencordt, 1975). However this has been later dismissed, and although the use of growth hormone in combination with Biophosphates may be a useful treatment, this has not yet been tested.Metal bone plates are also used for patients with more severe fractures, and helps to strengthen and reduce fractures of the affected bones, mainly long bones e.g. arms and legs. Nutritional disorders.Rickets and Osteomalacia.Rickets is a nutritional bone disorder which is found in children. It is known to affect about 1 in 1000 children in the UK alone. A very similar disorder takes place amongst adults and this is known as osteomalacia.Both these disorders occur as a result of abnormal mineralisation (calcification) of bone and cartilage. The body transfers calcium and vitamins from the bone into the blood due to vitamin want i.e. deficiency in Vitamin D and calcium. This demineralisation subsequently leads to bone deformity, and thus the bones beat soft and very vulnerable to fractures.There are many reasons that cause vitamin deficiency that subsequently leads to rickets and osteomalacia. Some of which include nutritional deficiency (poor diet), poor lifestyle (lack of do work), insufficient sunlight exposure (remaining indoors for long periods of time) and abnormal metabolism (liver and kidney disease, degenerative renal failure etc) (de Menezes Filho et al., 2006). Another main cause of rickets in children is due to the baby receiving a lack of vitamin D in the uterus from the mother who may also be deficient in vitamin D.SymptomsSymptoms of rickets and osteomalacia include Growth retardation. Deformities in the upper and level limbs. Insufficient weight pile up in children. High vulnerability to bone fractures. Bone pain. Muscle weakness. Pelvic flattening. Bowing legs. Defects in structure of teeth.DiagnosisA p hysical examination impart firstly help to identify bone deformities and multiple fractures. A medical history check can also help to identify a possible genetic link.The levels of parathyroid hormone and alkaline phosphate will increase in the blood as a result of deficiency in vitamin D and calcium. These hormones are responsible for the transfer of minerals and vitamins from the blood to the bone. This rise in the bloodstream is a major sign of rickets and osteomalacia, and blood tests carried out to see this princely rise of these hormones is a good method for diagnosis.X-rays can also show the demineralisation of the bone and reveal any abnormal bone structures.Treatment alternate vitamin D, calcium, and other necessary minerals in patients with rickets and osteomalacia is very important, and is the main method of treatment.Babies that startd a lack of vitamin D whilst in the womb of their mother, or a shortage from their mothers milk should be given vitamin drops, e.g. Abid ec, to help increase their levels of vitamin D.Food rich in Vitamin D and calcium are highly advised, and offer a replacement for their deficiency. These types of food include oily fish (tuna, salmon herrings, mackerels), dairy products (milk, yoghurt), liver, Vitamin supplements can also be prescribed from a doctor.An injection of vitamin D (calciferol) is also available and can last up to a year before another injection is needed. Adequate exposure to sunlight is also highly recommended.Autoimmune disorders.Rheumatoid arthritis (RA).It has been estimated that at least 1 in 100 people suffer from RA, and that in the UK alone there are about 400,000- 500,000 sufferers. It is a chronic inflammatory disease mainly affecting synovial membrane, cartilage and bone. This then can lead to juncture destruction, which is typically distinguished by gradual bone erosion, and is the main cause of disability in RA.RA causes the immune placement to start producing antibodies, which attack the l ining of joints (synovium), and tissues (tendons), and so thus resulting in inflammation and swelling. In response to this, the body releases a special synovium thickening chemical which causes the joint to wear away and loose its shape, and eventually the joint is completely destroyed. RA is also systemic and can spread to other tissues and other parts of the body causing more problems mainly in the hands, feet and spine. In very severe cases the disease can spread to organs and this can be very critical. RA does not occur at a particular age group, and the disorder can develop at any age in sufferers lifetime. However, more ordinarily RA occurs in patients that are between the ages of 30 to 60 years old. The causes of RA are still relatively unknown, however that have been several theories involving possible genes that can cause RA (Barton and Worthington, 2009). RA may also occur as a result of pollution (bacteria, fungi, viruses).SymptomsSymptoms of RA include Swelling of join ts. Stiffness, particularly early in the morning. Inflammation. Formation of rheumatoid nodules, which appear on hands, feet and elbows. influenza like symptoms such as fever. Weight disadvantage.DiagnosisThe diagnosis of RA is rather difficult, due to the fact that the main symptoms of RA inflammation and joint severeness/swelling, and these symptoms can be commonly associated with other diseases/disorders. A full family history is looked at first in order to establish any hereditary traits of RA in the patient.Imaging techniques such as X-rays, CT scans and ultrasound can used to look at rheumatic erosion (the disappearance of bones/joints). However, it can be difficult to diagnose RA in the early stages of the disorder, as there may not be any physical changes during these stages.The cytokines TNF (neoplasm humiliation factor) and IL-1 (Interlukin-1) are responsible for further inflammation which occurs in people that suffer from RA. Both of these cytokines are present in the j oint of people with RA, and checking for the presence of these cytokines at joints is a method used to diagnose RA.ESR (erythrocyte sedimentation rate) is also another blood test that can be used to diagnose RA. It is a time of the rate in which red blood precipitate in a period of 1 hour, and is a non specific measure of inflammation.The CRP test (C-reactive protein test) is the scrap most popular diagnosis test for RA. In response to inflammation of tendon/ligaments, the liver produces C-reactive proteins, and this test is used to detect the presence of these proteins in the blood. The antibody RF (Rheumatoid factor) is present in the blood of sufferers of RA. Therefore blood tests to identify the presence of this antibody in the blood, 8 out of 10 times will diagnose a person that is suffering from RA.TreatmentCurrently there is no clear treatment for RA, however there a few drugs available that either help relieve some of the symptoms, or to help modify the disorder. Pain kill ers such as paracetamol and ibuprofen can help relieve some of the symptoms of RA.NSAIDs (non-steroidal anti-inflammatory drugs) are also a set of pain killers e.g. diclofenac, ibuprofen and naproxen, and help to control joint pain and stiffness. Although these drugs help with the symptoms of RA they do not directly stay the development of RA. Furthermore, there are many common side effects associated with NSAIDs including diarrhoea, nausea, increase risk of myocardial infarction etc.Disease modifying anti-arthritic/antirhumatic drugs (DMARDS) are drugs that get going by blocking the affect of certain chemicals i.e. TNF following the damage of bone, joints, tendons and ligaments. These drugs not only ease the pain and stiffness related to RA, but also slow the progression of the condition.Maintaining a healthy lifestyle for an individual suffering from RA is also vital as it reduces the chances of further complications arising from the disease. There are also many therapies e.g. a cupuncture, hydrotherapy, and also arthroplasty which can significantly help with the pain and joint stiffness linked to the disorder.Degenerative disorders.Osteoarthritis (OA).Osteoarthritis is an age-related disease that ultimately has an effect on each individual, who live onto they senior years (Wong and Carter, 2003).The pain associated with osteoarthritis typically emerges from the degeneration of the cartilage between the joints, as a result of main(a) osteoarthritis, or from trauma conduceing about the loss of cartilage (Temenoff and Mikos, 2000). Given that cartilage demonstrates a poor ability to self-repair, these injuries are sustained for years and can ultimately bring about further degeneration (secondary osteoarthritis) (ODriscoll, 1998). The degeneration of cartilage causes bone ends to become exposed, and the deposition of new osseous tissue on the bone ends. This also reduces the space in the joint cavity and limits movement (Gerard J. Tortora, 2007). The underly ing bone also forms osteophytes (spikes) which grow outwards due to the bone compensating for the loss of cartilage, and this hinders joint movement and causes pain. It has been estimated that roughly 36 million Americans are diagnosed with this form of arthritis (Temenoff and Mikos, 2000). Osteoarthritis is also the main reason as to why many individuals undergo articulatio coxae and knee replacement surgery (Wilson et al., 2005), and is also the main cause of mobility impairment in elder individuals (Buckwalter, 1997).SymptomsAcute pain causing stiffness and lack of joint movement is the main symptom of OA. The capsule surrounding joints become bigger due to inflammation and this reduces mobility, and thus muscles at the joint become weaker. Other symptoms include spasm and contractions in the tendons accumulation of fluid at joints, muscle weakness, and hardy bone enlargements in small joints i.e. fingers and toes.DiagnosisThere is no single test used to diagnose OA. A physical e xamination can show a lack of mobility, joint weakness and swelling. X-rays can show the loss of joint space and in extreme cases the presence of osteophytes. TreatmentThere is advanced research going into ways to engineer cartilage to help patients suffering from OA, although a major breakthrough has yet been developed. Instead a healthy lifestyle i.e. loss of weight and exercise is highly advisedSufferers are advised to exercise the affected area as this will enable better support for affected joints and strengthen the muscles surrounding the joint. This also helps in increasing the mobility of the joints, balance and posture. Drugs such as NSAIDs (non-steroidal anti-inflammatory drugs) i.e. ibuprofen can help in relieving pain and reducing inflammation. However the long term use of these types of drugs can cause many adverse reactions.Bone tumours.A Bone tumour is the neoplastic growth of tissue in bone i.e. cells in tissue continually dividing resulting in the formation of the tumour, and can be benign or malignant. This tumour can further spread throughout the body via the lymph system. The lymph system contains lymphocytes and phagocytes, and a further function of the lymph system is to remove worn out red blood cells.There are two main categories of bone tumours, primary bone tumours and secondary bone tumours. Primary bone tumours can be localised or can spread (malignant), and these bone tumours derive from within the tissue. Primary tumours can be further split into benign tumours and cancer. Secondary bone tumours derive from other tumours from a different part of the body and spread to the tissue via the blood.The mutation of the P53 gene which suppresses bone tumour is thought to responsible for the formation of bone tumours however the exact cause is still not fully known.There are many different types of bone tumours, of which the most common are listed below, including symptoms, diagnosis and treatments. Osteosarcoma- This is the most common type of bone tumour, and as well as Ewings syndrome (see below), is the most aggressive type of bone tumour. It affects people at an early age (5-25years), and is rare in people of above the age of 30. Osteosarcoma is a malignant tumour and eventually will spread throughout the body. It is also known to start in the cavities within the bone, and is it affects long bones mainly the knee.Osteosarcoma is diagnosed via examination and imaging techniques such as MRI or CT scan.Osteosarcoma if usually treated by surgery and chemotherapy before and after the surgery. Ewings Sarcoma- Just like Osteosarcoma, Ewings sarcoma affects people at a young age (5-15 years), and also the survival rate up to 3 years is a 60% chance. Ewings sarcoma in mainly found in the lower extremity, than the upper extremity (Eggli et al., 1993)Some of the symptoms of Ewings disorder include pain and swelling, warmth of the local area, and the appearance of onion skin.Ewings disorder can be diagnosed via MRI and CT scans.Treatments of Ewings disorder include surgery, radiation and multi-drug chemotherapy (Eggli et al., 1993). Chondrosarcoma- This bone tumour affects the chondrocytes of cartilage tissue and subsequently, the tissue eventually becomes cancerous. Chondrosarcoma can occur at any age, and this tumour grows slowly and normally without any pain. Lymphoma- Lymphoma is cancer of lymphatic cells, and usually begins in the lymph node, but can also form in the bones. Multiple Myeloma- This bone tumour occurs as a result of bone marrow cells becoming cancerous and can cause osteolytic bone damage. It usually occurs in people above the age of cubic decimetre five, and men are twice more likely to get it than women.The main symptom of multiple myeloma is pain, as well as normochromic anemia, spinal cord condensing and renal insufficiency.Multiple myeloma can be diagnosed via MRI and CT scans.Chemotherapy, bone marrow transplant as well as Bisphosphonate drugs are some of the main treatmen ts for multiple myeloma. Osteroid Osteoma- This tumour occurs as a result of the matrix of bone becoming cancerous. It normally occurs twice as often in males than females. It more commonly takes place in the proximal femur, then mainly in the tibia, followed by posterior elements of the spine and the humerus (Bloem and Kroon, 1993).Common symptoms include dull pain which gets worse during the night, an increase in skin temperature, increased sweating and abnormal growth.Radiological scans and CT scans are common methods for diagnosis.Non-steroidal anti-inflammatory drugs are given as part of the treatment for osteroid osteoma as well surgical removal. Osteoblastoma- Osteoblastoma is a benign tumour in bone tissue and occurs when osteoblast cells become cancerous. It is mainly common in children and young adults. Pain and bone mass reduction are the main symptoms of osteoblastoma.Method of diagnosis for osteoblastoma includes x-rays, microscopic examination of osteoblast cells and a biopsy.Surgical removal of the tumour is a common treat for this bone tumour as well as cryosurgery, radiation and chemotherapy.Hormonal disorders.Osteoporosis.Osteoporosis results in bones becoming porous and these pores become bigger (2 times bigger) in cancellous cortical bone. It occurs as a result of a reduction in bone mineral density (bone mineralisation). It is a direct disease of the bone as compared to some of the other bone disorders mentioned above. During osteoporosis the rate of bone renewal is slower than bone breakdown and it commonly affects the hip, wrists and spine. It is estimated that over 3 million people in the UK alone suffer from osteoporosis.There are two main types of osteoporosis (Type I and Type II).Type I osteoporosis occurs mainly in females following menopause. Following menopause there is a deficiency in oestrogen and testosterone and this disorder is known as postmenopausal osteoporosis.Type II is mainly caused by a poor lifestyle i.e. excess smoki ng and drinking. This leads to a deficiency of calcium and vitamin D as a result of disorders of the intestine. The deficiency may also arise from kidney disorders caused by a poor diet (too much fast foods and fizzy drinks) and excess alcohol consumption. Also people unendingly taking drugs mainly corticosteroid drugs will have a loss of bone density.SymptomsOsteoporosis does not have any specific symptoms however its main issue is an increased risk of bone fractures and breaks, and also an increased risk of falling due to fractures of the wrist, spine and hip.DiagnosisBone mineral density (BMD) test to measure bone mineral density was the first test used to diagnose osteoporosis. There are many different types of BMD tests, the most common being quantitative ultrasound. This is a very good method for diagnosis and is also a much safer approach than x-rays and radiography, which can also be used to diagnose osteoporosis. fall tests to identify deficiencies in calcium and vitamin D are a further method for diagnosis.TreatmentsHRT (Hormone Replacement Therapy) was initially used to treat postmenopausal osteoporosis, however its used was later stopped due to its many side effects e.g. breast cancer, blood clotting, stroke etc.Bisphosphonates can be used to treat osteoporosis and it functions by slowing down the breakdown of bone, in order for the body to cope with bone renewal. Bisphosphonate intolerancy was then later discovered in 20 % of people. thyrocalcitonin drugs are another type of drug used to treat osteoporosis. calcitonin is produced naturally in the thyroid gland, and calcitonin drugs work by directly inhibiting osteoclast activity. Calcitonin is also found naturally in salmon.Strontium Renelate is another drug that can be used and helps to promote bone renewal.Calcium and vitamin D supplements also help to slow down osteoporosis. Exercise is also highly advised for osteoporosis sufferers and has been shown to maintain or increase bone mineral dens ity especially in postmenopausal women.Pagets disease.Pagets disease is a bone disorder associated with a disorder in bone remodelling, and affects 10% of elderly people (Barker et al., 1980). Furthermore it is more expectant in males than females. In Pagets disease there is an increase in bone remodelling which is also disorganised, and this caused by a primary abnormality of osteoclast cells (Hosking et al., 1996). The bone turnover is increased by 40%, and in addition, bone is grown in areas where bone is not needed and removed from areas where bone is required.Pagets disease is now referred to as osteoclast pagetic disease. In the disorder, the osteoclasts which are bone cells responsible for the removal of bone are targeted. Over a period of time osteoblast activity subsequently increases in response to osteoclast activity, and helps in forming new bone. However, the new bone that is formed is a lot larger and thicker because of the very fast remodelling process, but criticall y the interior parts of the bone are porous, and a lot more fragile and tender. This therefore makes the bone more venerable to fractures and breaks. Below is an illustration of a particular deformity associated with Pagets disease sufferers (see Figure 2.)Symptoms/complicationsJoint pain and bone paint are common symptoms associated with Pagets disease. As the disease progresses the swelling and expansion of the bone leads to the expanding bone becoming weaker. Also the initial symptoms of Pagets disease are not clear but do become clearer over time as the disorder develops.Fractures of long bones e.g. tibia, femur, pelvis, spine, skull are common symptoms of Pagets disease as well as skeletal deformity.Arthritis is a common complication which arises from Pagets disease and occurs mainly in the proximal ends of long bones.A further complication of Pagets disease is Gout. Gout arises from the excessive production of uric acid and salts leading to gouting arthritis, which is a diseas e of uric acid metabolism. The build up of uric acid and salts in the bloodstream leads to accumulation at the bone joints/cartilage which then causes kidney stones. Bone tumours, and in particular cancellous bone tumour can arise as a result of gout.The dysregulation of bone can also cause an increase in blood circulation and can consequently bring about heart failure.Compression of nerves is also seen in sufferers of Pagets disease and is caused by bone expansion and this brings about complications in movement. Also nerve compression in the skull brings about a loss of hearing and vision.DiagnosisX-rays is a very clear method to help detect bone expansion, bone loss and bone deformity.Alkaline phosphate which is a by-product of any type of bone disease/disorder is present in the bloodstream, and so blood test can help to identify the presence of these.TreatmentBisphosphonates and calcitonin are common drugs used to treat Pagets disease. These drugs bind to osteoclast cells and inc rease their activity, thus reducing their breakdown, and resorption of bone into the bloodstream.Pain killers can also be taken to help ease bone pain and neuralgic pain.It is also advised that Pagets disease sufferers should receive adequate sunshine, adequate amounts of vitamin D, and maintain a healthy lifestyle i.e. healthy diet and regular exercise.ReferencesBarker, D.J., Chamberlain, A.T., Guyer, P.B., and Gardner, M.J. (1980). Pagets disease of bone the Lancashire focus. Br Med J 280, 1105-1107.Barton, A., and Worthington, J. (2009). Genetic expertness to rheumatoid arthritis an emerging picture. Arthritis Rheum 61, 1441-1446.Bloem, J.L., and Kroon, H.M. (1993). Osseous lesions. Radiol Clin North Am 31, 261-278.Buckwalter, J.A.a.H.J.M. (1997). Articular Cartilage. Part II Degeneration and Osteoarthrosis, Repair, Regeneration, and Transplantation. Journal of Bone and Joint Surgery, 612-632.de Menezes Filho, H., de Castro, L.C., and Damiani, D. (2006). Hypophosphatemic rickets and osteomalacia. Arq Bras Endocrinol Metabol 50, 802-813.Eggli, K.D., Quiogue, T., and Moser, R.P., younger (1993). Ewings sarcoma. Radiol Clin North Am 31, 325-337.Gerard J. Tortora, B.D. (2007). Principles of Anatomy Physiology 11th Edition Binder Ready Version, 11 edn (John Wiley Sons, 2007).Horton, W.A., Hall, J.G., and Hecht, J.T. (2007). Achondroplasia. Lancet 370, 162-172.Horton, W.A., Hecht, J.T., Hood, O.J., Marshall, R.N., Moore, W.V., and Hollowell, J.G. (1992). Growth hormone therapy in achondroplasia. Am J Med Genet 42, 667-670.Hosking, D., Meunier, P.J., Ringe, J.D., Reginster, J.Y., and Gennari, C. (1996). Pagets disease of bone diagnosis and management. BMJ 312, 491-494.Kruse, H.P., and Kuhlencordt, F. (1975). On an attempt to treat primary and secondary osteoporosis with human growth hormone. Horm Metab Res 7, 488-491.ODriscoll, S.W. (1998). The healing and regeneration of articular cartilage. J Bone Joint Surg Am 80, 1795-1812.Rousseau, F., Bonaventure, J., Leg eai-Mallet, L., Pelet, A., Rozet, J.M., Maroteaux, P., Le Merrer, M., and Munnich, A. (1994). Mutations in the gene encoding fibroblast growth factor receptor-3 in achondroplasia. Nature 371, 252-254.Sillence, D.O., Senn, A., and Danks, D.M. (1979). Genetic heterogeneity in osteogenesis imperfecta. J Med Genet 16, 101-116.Temenoff, J.S., and Mikos, A.G. (2000). Review tissue engineering for regeneration of articular cartilage. Biomaterials 21, 431-440.Trotter, T.L., Hall, J.G., and American Academy of Pediatrics Committee on, G. (2005). Health supervision for children with achondroplasia. Pediatrics 116, 771-783.

Issues of SME Entrepreneurs and Investment Aspects

Issues of SME Entrepreneurs and Investment AspectsIntroductionStart-UpEntrepreneurs who wish to commute their blood dreams into truthfulness volition one modality or an other(a) reach bulge for the external finance. Many untested enterpriserial derive moving-up short-circuit letteres do not obtain start-up pedigreeing (Gruber, 2004 Mason Harrison, 2004b). Private individual habilitateors with a high net worth, known as trade desirels, represent the largest source of start-up financing for bracing entrepreneurial workes (Aernoudt, 2005a). administration of bran-new feargons is vital to the development and growth of the countrys economy (Reynolds et al., 2003). Since the first publication on a crease nonpargonil was published by (Wetel, 1981), more authors piss seeked on the inlump enthronisation market and studied closely monitoring commercial enterprise saints traces, enthronement criteria and issues related to an en commitment. correspond to (Mason s Harrison, 2000), it is cited that over the retiring(a) gen eontions many seekes open been carried disclose in diverse countries and comp ard with each other.This dissertation will discuss slightly the mind of an layor and how they ope account in terms of investing their pecuniary assets in a start-up personal credit line they believe in espouseing. The main reason is to broaden our chthonianstanding of investiture aspects of a bloodline apotheosis and how an entrepreneur should respond to it. To reclaim out teaching sources on vexation start-ups, refer (App ceaseix 1).Problem DiscussionsMany line entrepreneurs do not cave in the luxury of sign pileus thats demand to start-up a new business as it requires a vast kernel of finance equity (Clarke, 2005 Sohl, 2006). How do entrepreneurs baring the sign majuscule and which investor will verify the business ideas and fund the gild? What is the difference betwixt a great investiture and a poor decision? What are the requirements of a business ideal? These are the main issues SME business starters go finished in the initial stages of a business (Wiltbank Boeker, 2007). The answers for only these issues vary viewing on several(prenominal) criteria. For example, it could vary collect to the type of the business the entrepreneur wish to start, the capacity of the risk voluminous, the contain of investment funds period and especi whollyy the preference of the entrepreneur working(a) alone or with the influence of the investor (Kaplan Schoar, 2005).The dissertation tries to reach active business apotheosiss view points on the issues of SME entrepreneurs and investment aspects. The researcher is confident that this dissertation will gather both the business angels and entrepreneurs.Introduction Of The Research Subjects fit in to a survey conducted by the (EIRO), the governments Bolton Committee in its 1971 storey clarified that t here is no mavin interpretation to ration alize Sm only(prenominal) to medium enterprises because of the wide diversity of businesses that shut up in the United Kingdom. The report similarly explained that olive-sized to medium business varies concord to the type of orbit it operates. However section 249 of the Companies act of 1985 af quicks that a sm both confederacy will realise to attri providede at least two of the future(a) characteristicsTurnover little(prenominal) than GBP 2.8 millionTotal balance sheet less than GBP 1.4 millionEmployees less than 50And a medium sized entrepreneur should operate under the future(a) regulationsTurnover less than GBP 11.2 millionTotal balance sheet less than GBP 5.6 millionEmployees less than 250However 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 observation interestFormal And versed 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 sum of risk invested (Kelly Hay, 2003). There are 2 main types of opine financing in the UK and they are formal enter hoodists (large financial institutions) and open venture capitalists (wealthy private investors commonly known as business angels).The UK Formal Venture capitalism began in the 18th blow (Harding Bosma, 2007). During that sequence Entrepreneurs frame affluent individuals to put down support for their new businesses. This informal tradition of funding horizontaltually formed a business trade by a subroutine of venture capital firms created by many wealthy. Currently there are over 120 venture capital establishments in the UK, which fund billions of cash each year to the UK SME market (Frielinghaus et al., 2005).Informal venture capitalists are mainly recognized as logical argu ment Angels who are wealthy individuals with a high tier reputation of managing intimately run businesses (Masson Harrison, 2004). As investors business angels bare a larger risk than venture capital firms as they have to be li adequate for the loss of the investment incase the business they invest lose out. On the other hand venture capital firms have many investors who rump be hand in hand to one another in a bad situation (Masson Harrison, 2004). contrast angels are to a greater extent common in UK where they take to the woods to invest more on SME businesses where banks and venture capital firms steady down not to, which will be further discussed under evidence analysis (Madill et al., 2005). furrow angels draw 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 dissimilar than venture capital firms requirements and business angels investment decisions are made solely on the basis of the relationship amid the entrepreneur and the investor (Masson Harrison, 2002). Although entrepreneurs could use formal informal investors at contrasting stages in the business as shown in the (figure 1), it shows where business angels are needed where we will further discuss later on (Aernoudt, R., 1999). build 1 fiscal sources and their involving stagesSource (VENTURE CAPITAL, 1999, VOL. 1, NO. 2, 187 195)ObjectivesUnderstand a business angel, an entrepreneur and their relationship in a SME start-up businesses in UKIdentify detailed requirements of business angels when it comes to an investment delay how different countries cultures undertake investmentsLiterature ReviewThis literature reexamine is concerned around the academic groundwork of the research objectives which inquires about investment categories business angels slant to invest in a small to medium sized business sector. It also looks at how different authors have elucidated about the in vestment natures of different countries want New Zealand, Denmark, Sweden etc.In order to give a clear structure of this academic review, it will be categorized into subsections to talk different authors views about the research objectives. First the review will discuss about the academic Theories of investments. Then it looks at billet angels and entrepreneurs in the UK. in the huge run the review will ask different countries nature of investments in their own markets.2.1 Theories of InvestmentThere are several investment theories make up ones mindd and compared by many authors. This thesis mainly focuses on informal investors who wish to invest on SME start-up businesses. Although Stock market related investment theories are ir pertinent for our objectives it will be plain-spoken to ignore discussing all investment theories. Therefore lets investigate the theories and in the later chapters discuss the practical concepts (evidence) used currently by successful investors.Am ong the following theories, in force(p) commercialise guess will be related to investment in stock listed companies and principal-agent, prisoners dilemma model imagination found theory will be about business angels investing in SME businesses.2.1.1 Efficient Market hypothesis (EMT)According to (Burton Malkiel, 1973), the stock set that show in the stock market al around define where the company is in its territory and how easily it practises compared to its competitors. He suggests that stock prices may not always be accurate but it can be correct most of the time. On the other hand a couple of(prenominal) business managers disagree, explaining that there companys values are priced unfairly and stock prices do not accurately replicate the execution of instrument of their companies (Burton Malkiel, 1973). The following discussion will communicate what in force(p) market theory is about and explore the arguments against it. According to (Michael Firth, 1975), it is state d that there were many academic researches carried out to monitor the share price behavior by investment advisory firms and investors to obtain profitable investment strategies.What is EMT or EMH?(Burton Malkiel, 1973) explained that Efficient Market opening (EMT) is also known as Efficient Market Hypothesis (EMH) on a more technical term. This theory is a order of defining how stock values behave the way they do in terms of investment decisions. (Eugene Fama, 1965) later categorized EMH into three sub assumptions and they are as follows1. powerless form (EMH)This method assumes that current stock values replicate all past information about the specific company such as death penalty mea realments, returns etc. By analyzing the stocks price chart, it can help the investors verify as to what the future holds for the companys stock values (Eugene Fama, 1965).2. Semi strong (EMH)The assumption built on this method is that all the publically available information and historical in formation replicates the values of a companys stock prices in the market. So the investors could gain more intimacy and reliance through a companys financial statements and recent developments. It will modify the investors to judge the company future performance (Eugene Fama, 1965).3. Strong form (EMH)This method explicit that, other than publicly available information, the investors get an inside look into the company which largely reflects the stock value (Eugene Fama, 1965). head word Agent TheoryIn command terms Principal Agent theory is defined as a business management framework to observe the behavior between employer contractor or employer employees (Spence and Zeckhauser, 1971 Ross, 1973). So here this theory can be applied to the business angel entrepreneur relationship and discuss its implication on the investment fulfil (Jenson and Meckling, 1976 Harris and Raviv, 1978).In the corporal business, the principal (Business angel) unremarkably appoints the agent (ma nager) or else make sure the entrepreneur works according to the principals ideas in the business (Jenson and Meckling, 1976). The principal usually make sure that the agents business intentions are as similar to him/her (www.financemind.com).In other words, the principal wishes to make sure that the business runs well and succeed the way he/she believes topper (Eisenhardt, 1989). But on the other hand, over an informational advantage the agent could think otherwise for the business. This is where the problem of shared risks arises as (Eisenhardt, 1989) explains, where the Investor (principal) and the agent (manager) could end up having different opinions towards the business.The agency theory is widely used in venture capitalism (Bruton, Fried Hisrich, 2000a). Having conflicts due to differences in interests, it is essential to minimize these risks as (Bruton, Fried Hisrich, 2000b) agrees with Eisenhardt. To expurgate these risks investors make sure that they actively monitor th e companies they invest and build a give way and close relationship with each other (Busenitz, Fiet Moesel, 2004). According to (Sweeting Wong, 1997), using a principal agent theory to evaluate a business angel investment is not passing recommended anymore. It is frequently better to have a reciprocally agreed relationship. The agency theory shows that money motivates both the principal and the agent (Busenitz, Fiet Moesel, 2004). But financial motivations or economic factors do not relate business angels relationship with the entrepreneur in this theory (Wijbenga et al., 2003).Prisoners Dilemma Framework (PDF)This is yet another theory that can be used in an investment study. In this framework there can be either a conflict or a development between the two trigger offies involved (Cable Shane, 1997). In this theory, both parties can either go in their separate interests and gain a certain pay off or co-operate with each other and achieve a higher pay off (Bruton, Fried His rich, 2000). The prisoners dilemma framework promises better fitting for the business angels and the entrepreneurs because it does not presume a vertical relationship between the two parties (Bruton, Fried Hisrich, 2000 Cable Shane, 1997). Still the PDF theory only focuses on the investor entrepreneur relationship and not any of the business angel investment activities or impacts. It concludes that the theory is not worthy comely to define a business angel entrepreneur relationship (Cable Shane, 1997).Resource Based TheoryThe resource ground theory has many influences on the entrepreneurship. Business angels can have many resources other than cash it self. According to Freear, Sohl and Wetzet (2002), angel investors can contribute five types of resources to an entrepreneur Human, physical, social, organizational financial.Human capital can be taken as angel investors contribution of business knowledge, skills and business experience to the firm (Erikson Nerdrum, 2001a). Social capital can be gained when business angels provide their business contacts (Angel networks). By this, the entrepreneur has the opportunity to accumulate other investors and extend the funding possibilities to the business. fleshly resources can be machines or factories and organizational capital can be described as the influence and advice the investors can give for the business for an example qualification the business change on its experience (Erikson Nerdrum, 2001b).Financial capital consists of the funding provided in the beginning of the start-up conformation (Cassar, 2003). By far this presumed to be the best desirable theory to define a relationship between a Business angel and an Entrepreneur where all aspects are covered (Rose, 2005).Summary Of TheoriesLooking spikelet at the efficient market theory, Agency theory, Prisoners dilemma framework and Resource based theory it seems to be that the Resource based theory is the most suitable theoretical framework fo r the Business angel investments. However the Resource based theory has to be amended with few assumptions Human capital should be taken as the (knowledge, skills business experience) investors contribute with (Ardichvili et al. (2002).Although we discussed the above theories, many researchers have described and tried to apply other similar theories to the investor investee relationship Example Procedural Justice (Busenitz, Fiet Moesel, 2004), education and knowledge-based view (De Clercq Sapienza, 2002), resource exchange theory (Gomez-Mejia, Balkin Welbourne, 1990).All the investment theories have a common characteristic that have only a few relevant investment features in them to the investor-investee concept. To make it applicable for the Business angels and entrepreneurs all these theories should have few amendments and adaptations (Sapienza, Manigart Vermeir, 1996).Small And Medium Enterprise (SME)William Kendall, the Chief Executive of Whole existence Ltd stated, SME business is a fantastic place to work. You have to think innovatively to be an entrepreneur. Its thrilling and its enjoyable.According to (European Industrial Relations Observatory) there is no general definition for SME. But the (Governments Bolton Committee, 1971) cited that the characteristic of a SME firm is a self-sufficient business being owned by a single owner with a small market share. The report also stated that the size of the SME changes in different industries.Although it is hard to give one specific definition for SMEs, it can be deliberate and classified by numbers (employees taxation rates). The defining measurements are as followsDefinitions (The Department for Business, Enterprise and Regulatory Reform BERR, UK) has defined SME with 3 types of measurements and those are based on amount of employeesMicro firms 0-9 employeesSmall firms 0-49 employees andMedium firms 50-249.The (European Commission) changed the definition of the SME to increase the partnerships an d innovations. The definition which took affect on 2005 is A Micro, Small and Medium-sized enterprise (SME) is made up of firms which employ less than 250 employees and have yearly revenue less than 50 million euro.Importance Of SME In The UkThe country has raised the level of growth productivity in the hold water era reducing the competition gap between other countries deal US, France Germany (BERR, 2008).Currently UK is reacting well to the global prospects and challenges. The growth of the SME market increases each year burnished to boost the economy of the country. According to (European Business Angels Network (2007) Dissemination Report on the Potential for Business Angels Investment and Networks in Europe), the craft and annual revenue contribution of the SME industry as a whole is more than 50 percent of the total.The UK government provides necessary support for people to bar up and start their innovative business to increase the competition level of the country (www .berr.gov.uk).The EntrepreneurEarlier it was discussed that previously recognized agency theories explains that the investor, ensuring a heavy relationship is highly regarded as a successful investment aspect in an investment (Kelly Hay, 2003). Therefore exploring more about what authors have studied about entrepreneurs and investors is vital.The difference between a formal venture capitalist and a business angel is that a venture capitalist invests looking at the company and its ability to perform (Schramm, 2004). On the other hand the business angel focuses mostly on the entrepreneur to make sure there can be a near business relationship (Mark and Robinson 2000, p138). The entrepreneur is the only key to get the funding needed for a start-up business. As an entrepreneur, it is vital to gain the investors rely and confidence in the business idea. According to (Osnabrugge Robinson 2000, p123), it is cited that during a business start-up there is a high percentage of entrepreneu rs failing to make good management decisions in the initial stages. It is very(prenominal) sensible for an entrepreneur to seek a business angel as they pay special interest on the business they invest in with all their resources including non-financial contributions. It could help fill all the management weaknesses of an initial stage of the business and save huge amounts of consulting and managerial costs (Mason and Stark, 2004).Entrepreneur military rank(Osnabrugge Robinson, 2000) had explained that entrepreneurs should be conscious(predicate) that the investor not only pays attention on the business proposition but also the entrepreneur himself to find the safety, confidence, enthusiasm and the ability to depend on the entrepreneur. affirm is something investors work hard to find in an entrepreneur, because they invest large amounts of financial resources on a person they met in a short period of time (Osnabrugge Robinson 2000, p125). According to a study conducted by Ste dler and Peters entrepreneurs capability to convince the business angel to invest is very important and showed that 81% of business angels has expressed that a positive first impression established in the first meeting as important (Stedler and Peters, 2000).When it comes to angel investment decisions being made, business angels need to ensure that the entrepreneur should be a proficient manager (Gerald and Joel, 2000).Loyalty, leadership, reliability and face-to-faceity are important characteristics that angel investors look into when they evaluate entrepreneurs. An entrepreneur should be able to have those qualities to gain an influence of the investor (Aernoudt 1999 Sappa 2006). The characteristics that separate a good ownership from a poor is, that if the entrepreneur is able to establish trust and leadership skills with confidence and make the employees follow him/her (Micah Baldwin 2007).Investors find it comforting to know that the entrepreneurs have invested partly on the business before seeking external investment. This gives the investor the idea that the entrepreneur has habituated all the driving in the involvement of the process and that the financial value of the business is appreciated (Osnabrugge Robinson 2000, p127).According to (Sappa 2006), business angels take a lot of time and effort into finding out background information on the entrepreneur to ensure that the owner has the right expertise to manage the business he proposes. (Haines and move 1998) corroborates moreover by adding that the entrepreneur sharing his/her previous business experiences and being much more practical about the business brings more information and confidence to the investor.Finally all the above characteristics that were discussed are very important for a new start-up entrepreneur to influence investments from professional business angels.Business AngelsAs we have foregone through the theories of business angels it is important to know who business angels a re in the minds of researchers. A business angel is a highly happy individual who can be a business person and impulsive to invest part of his/hers finance on a undimmed entrepreneur who has a potential to succeed (Isakssin 2000, Helle 2004).According to (Harrison Manson, 1999), there are three eras of business angel researches conducted in the investment businessFirst era of business angel research was conducted by United States of America in early 1980s. Authors like (Landstrom, 1993) from Sweden and (Harrison Manson, 1992) from United Kingdom repeated the same work by giving out similar results. In this era it was solely concentrated on business angels thoughts, activities and characteristics (Freear, Sohl Wetzel, 2002).Second era enabled researchers to go deep into business angels by investigating their post investment involvements. Theory building up and applying for business angels began in this era. Although there were theories built for business angels, it wasnt develo ped enough to be completely suitable for the activities of angel investors (Connolly et al., 2006).Third era will be the era about the future researches of business angels. There were many faults in the previous researches done and they need to be taken in a new direction to make sure the researches investigated will produce good results (Arenius Minniti, 2005). This would finally make us understand the minds of business angels and match the Business angel Entrepreneur relationship under changing economy, culture competition (Connolly, OGorman Bogue, 2006). By the help of (Harrison Mason) Swedish researchers like (Sorheim 2005) will enable to investigate on the changing environment of Business angels. This also mean that the theories being found in the previous eras could finally be developed enough to apply on the business angels current investment methods and get positive results (Gompers Lerner, 2007).Characteristics Of Business AngelsAlmost all the business angels who act ively invest on new businesses have few common characteristics. They all have the main motive to increase the potential of their financial capital (Duxbary, Haines Riding 1996). But (Landstrom 1993, Osnabrugge and Robinson 2000) explained that all business angels should not be profiled in a similar way because cultures and person to person could make them different to each others ways in terms of make a personal investment decision.Although there could be many differences between business angels, (Osnabrugge and Robinson, 2000) also stated that there are general motives behind all business angels when it comes to a certain result they expect out of an investment. When Venture capitalists and business angels are taken together it is wide clear that Business angels are individuals who prefer to invest less financial capital than of the formal investors who invest large amounts. Business angels also prefer to invest their money mainly on initial stages of a business (Osnabrugge and R obinson 2000). When it comes to formal investors, they are selective in industries they invest on depending on a lot of information and research. But the Business angels invest on the entrepreneur regardless of what industry sector the business idea would succeed on. They do little research on the industry but heavy research on the entrepreneur they expect to build a trust worthy relationship, because they depend on the entrepreneur much more than the venture capitalists that only hope on the market and the performance of the company (Osnabrugge and Robinson 2000, p63). Furthermore a research conducted in the Norwegian angel market and studies conducted in the US have identify several angel categories.There could be cultural and economical differences among countries like (UK, Sweden Singapore) but angel investors do have likely investment standards in those countries (Landstrom 1993). (Freeny, Haines Riding 1998) explained that the markets which business angels are currently act ive are where they are wiling to invest more on.There could be many differences in Business angels personalities and points of views of the whole investment process. There are studies that showed the most regular business angel. It is stated that the age, where successful individuals decide to invest their money on a business is when they get to their 50s. This shows that it is just about a retirement phase from a business point of view. This can be confirmed by a research carried out in Germany where it stated that 95% of BAs were male individuals, 56% were directors or owners of their businesses and 17% were individuals who were in the director board on other organizations (Stedler Peters, 2003). Even (Osnabrugge and Robinson 2000, p156) back up Stedler and Peters by explaining that the individuals were in director posts and had good business experiences before they decide to move on into personal investments.Most business angels involve themselves heavily during the initial st ages of start-up businesses. They wish to invest near to their homes to make sure of convenience. And Business angels are well educated, wealthy beyond a certain average and expect to have a good life with their feet up on a desk holding a glass of wine, which we all hope to achieve one fine sidereal day (Freeny, Haines Riding 1998).Although this thesis aims to look at the characteristics of UK business angels, it was clear by all previous studies that there are common statistics about their decisions and behaviors. This tells us that, UK angel investors too are not far from what was described before in the theories. Still it is important to point out few common characteristics of UK business angels reciprocal Characteristics Of UK Business AngelsAccording to (Ardichvili et al., 2002), Business angels in the UK have been or still are active business owners. They invest in more similar markets to what they are operating in, which saves them a lot of time trying to understand the ma rket and the operations.Like all business angels, UK investors are highly motivated by the return of their investments and the effort (non financial motives) they have put in to the start-up business. They do enjoy being a part of a new business hoping to succeed for the better part of the connection and the country (Landstrom 1993).Furthermore UK business angels prefers and makes sure they invest on new businesses that they could visit regularly, which means they invest in promising firms which will locate geographically near to where they reside (Ardichvili et al., 2002). BAs would rather invest in firms within their residing area, than investing in a location where they find it hard to meet the entrepreneur even though it would double their investments (Harrison, Mason Robson, 2003). Most British angels prefer their entrepreneurs operate within 100 miles of their homes although investors who invested on technological businesses are willing to travel long distances (www.bbaa.org .uk).According to Mason, British angels mostly prefer to invest on small businesses during its initial stages where it is not too late to put in not well(p) their finance sources but their advice and experience to get things on the right track. This, in a way gives them satisfaction of being a part of a promising business (Mason, 2002).After going through the common characteristics of British Angel Investors, it is quite clear that there isnt a major difference compared with the international countries like Sweden and Denmark which will be discussed later. We discussed about Business angels and it is vital to know the categories of their investments.Investment Aspects Of A Business AngelOne of the objectives of this thesis is to find out how Business angels in UK and other similar countries decide to invest on a certain investment they find it promising. An investor looking for good reasons to decide on an investment is known as Investment Aspects or Investment Criteria (Landstrom, 1993). It is a way of evaluating the business and the entrepreneur to ensure the security and the profitability of the business proposal.According to the venture capitalism and angel investment comparison carried out by (Osnabrugge Robinson 2000), it revealed that although there were similarities among their attributes in their investment standards there were a certain amount of dissimilarities which makes business angels favorites for a new start up business.For an example, venture capitalists are prepared to invest almost in all stages of a business and thusly they look into all the past and probable financial records of the company. On the other hand the business angels much prefer to invest on a start-up phase of a new business where past financial experiences are not so important to them(Osnabrugge Robinson 2000).Most business angels give similar priorities to investment aspects, when it comes to reservation a decision. With much researches conducted over the past years (Os nabrugge Robinson 2000) has come up with a selected summary that illustrates the criteria of an investment. The following (Table 1) of twenty-five selective factors are prioritized by well known angel investorsPriority orderPriority factors for an investment1passion of the industrialist2Dependability of the industrialist3Sales prospective of the product4proficiency of the industrialist5Entrepreneur(s) first impression6Development prospective of the market7Quality of the product8BenefitsIssues of SME Entrepreneurs and Investment AspectsIssues of SME Entrepreneurs and Investment AspectsIntroductionStart-UpEntrepreneurs who wish to transform their business dreams into reality will one way or another reach out for the external finance. Many new entrepreneurial start-up businesses do not obtain start-up financing (Gruber, 2004 Mason Harrison, 2004b). Private individual investors with a high net worth, known as business angels, represent the largest source of start-up financing for new entrepreneurial businesses (Aernoudt, 2005a). Establishment of new businesses is vital to the development and growth of the countrys economy (Reynolds et al., 2003). Since the first publication on a business angel was published by (Wetel, 1981), many authors have researched on the informal investment market and studied closely monitoring business angels characteristics, investment criteria and issues related to an investment. According to (Masons Harrison, 2000), it is cited that over the past generations many researches have been carried out in different countries and compared with each other.This dissertation will discuss about the mind of an investor and how they operate in terms of investing their financial assets in a start-up business they believe in succeeding. The main reason is to broaden our understanding of investment aspects of a business angel and how an entrepreneur should respond to it. To find out information sources on business start-ups, refer (Appendix 1).Problem DiscussionsMany business entrepreneurs do not have the luxury of initial capital thats needed to start-up a new business as it requires a vast amount of finance equity (Clarke, 2005 Sohl, 2006). How do entrepreneurs find the initial capital and which investor will trust the business ideas and fund the company? What is the difference between a good investment and a poor decision? What are the requirements of a business angel? These are the main issues SME business starters go through in the initial stages of a business (Wiltbank Boeker, 2007). The answers for all these issues vary depending on several criteria. For example, it could vary due to the type of the business the entrepreneur wish to start, the capacity of the risk involved, the return of investment period and especially the preference of the entrepreneur working alone or with the influence of the investor (Kaplan Schoar, 2005).The dissertation tries to reach active business angels view points on the issues of SME entrep reneurs and investment aspects. The researcher is confident that this thesis will benefit both the business angels and entrepreneurs.Introduction Of The Research SubjectsAccording to a survey conducted by the (EIRO), the governments Bolton Committee in its 1971 report clarified that there is no single definition to explain Small to medium enterprises because of the wide diversity of businesses that operate in the United 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 characteristicsTurnover less than GBP 2.8 millionTotal balance sheet less than GBP 1.4 millionEmployees less than 50And a medium sized entrepreneur should operate under the following regulationsTurnover less than GBP 11.2 millionTotal balance sheet less than GBP 5.6 millionEmployees less than 250However in real practice, bu siness 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 ObservatoryFormal And Informal Venture CapitalistsVenture 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 weal thy. 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 reasonable 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 firm s 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 angels are needed where we will further discuss later on (Aernoudt, R., 1999).Figure 1 Financial sources and their involving stagesSource (VENTURE CAPITAL, 1999, VOL. 1, NO. 2, 187 195)ObjectivesUnderstand a business angel, an entrepreneur and their relationship in a SME start-up businesses in UKIdentify detailed requirements of business angels when it comes to an investmentDetermine how different countries cultures undertake investmentsLiterature ReviewThis literature review is concerned about the academic groundwork of the research objectives which inquires about investment categories business angels tend to invest in a small to medium sized business sector. It also looks at how different authors have elucidated about the investment natures of different countries like New Zealand, Denmark, Sweden etc.In order to give a clear structure of this academic review, it will be categorized into subsections to converse different authors views about the research objectives. First the review will discuss about the academic Theories of investments. Then it looks at Business angels and entrepreneurs in the UK. Finally the review will investigate different countries nature of investments in their own markets.2.1 Theories of InvestmentThere are several investment theories defined and compared by many authors. This thesis mainly focuses on informal investors who wish to invest on SME start-up businesses. Although Stock market related investment theories are irrelevant for our objectives it will be impolite to ignore discussing all investment theories . Therefore lets investigate the theories and in the later chapters discuss the practical concepts (evidence) used currently by successful investors.Among the following theories, Efficient Market Theory will be related to investment in stock listed companies and principal-agent, prisoners dilemma framework resource based theory will be about business angels investing in SME businesses.2.1.1 Efficient Market Theory (EMT)According to (Burton Malkiel, 1973), the stock values that show in the stock market almost define where the company is in its territory and how well it performs compared to its competitors. He suggests that stock prices may not always be accurate but it can be correct most of the time. On the other hand few business managers disagree, explaining that there companys values are priced unfairly and stock prices do not accurately replicate the performance of their companies (Burton Malkiel, 1973). The following discussion will communicate what efficient market theory is about and explore the arguments against it. According to (Michael Firth, 1975), it is stated that there were many academic researches carried out to monitor the share price behavior by investment advisory firms and investors to obtain profitable investment strategies.What is EMT or EMH?(Burton Malkiel, 1973) explained that Efficient Market Theory (EMT) is also known as Efficient Market Hypothesis (EMH) on a more technical term. This theory is a method of defining how stock values behave the way they do in terms of investment decisions. (Eugene Fama, 1965) later categorized EMH into three sub assumptions and they are as follows1. Weak form (EMH)This method assumes that current stock values replicate all past information about the specific company such as performance measurements, returns etc. By analyzing the stocks price chart, it can help the investors verify as to what the future holds for the companys stock values (Eugene Fama, 1965).2. Semi strong (EMH)The assumption built on t his method is that all the publicly available information and historical information replicates the values of a companys stock prices in the market. So the investors could gain more knowledge and confidence through a companys financial statements and recent developments. It will enable the investors to judge the company future performance (Eugene Fama, 1965).3. Strong form (EMH)This method expressed that, other than publicly available information, the investors get an inside look into the company which largely reflects the stock value (Eugene Fama, 1965).Principal Agent TheoryIn general terms Principal Agent theory is defined as a business management framework to observe the behavior between employer contractor or employer employees (Spence and Zeckhauser, 1971 Ross, 1973). So here this theory can be applied to the business angel entrepreneur relationship and discuss its implication on the investment process (Jenson and Meckling, 1976 Harris and Raviv, 1978).In the corporate busi ness, the principal (Business angel) usually appoints the agent (manager) or else make sure the entrepreneur works according to the principals ideas in the business (Jenson and Meckling, 1976). The principal usually make sure that the agents business intentions are as similar to him/her (www.financemind.com).In other words, the principal wishes to make sure that the business runs well and succeed the way he/she believes best (Eisenhardt, 1989). But on the other hand, over an informational advantage the agent could think otherwise for the business. This is where the problem of shared risks arises as (Eisenhardt, 1989) explains, where the Investor (principal) and the agent (manager) could end up having different opinions towards the business.The agency theory is widely used in venture capitalism (Bruton, Fried Hisrich, 2000a). Having conflicts due to differences in interests, it is essential to minimize these risks as (Bruton, Fried Hisrich, 2000b) agrees with Eisenhardt. To reduce these risks investors make sure that they actively monitor the companies they invest and build a better and close relationship with each other (Busenitz, Fiet Moesel, 2004). According to (Sweeting Wong, 1997), using a principal agent theory to evaluate a business angel investment is not highly recommended anymore. It is much better to have a mutually agreed relationship. The agency theory shows that money motivates both the principal and the agent (Busenitz, Fiet Moesel, 2004). But financial motivations or economic factors do not relate business angels relationship with the entrepreneur in this theory (Wijbenga et al., 2003).Prisoners Dilemma Framework (PDF)This is yet another theory that can be used in an investment study. In this framework there can be either a conflict or a development between the two parties involved (Cable Shane, 1997). In this theory, both parties can either go in their separate interests and gain a certain pay off or co-operate with each other and achieve a higher pay off (Bruton, Fried Hisrich, 2000). The prisoners dilemma framework promises better fitting for the business angels and the entrepreneurs because it does not presume a hierarchical relationship between the two parties (Bruton, Fried Hisrich, 2000 Cable Shane, 1997). Still the PDF theory only focuses on the investor entrepreneur relationship and not any of the business angel investment activities or impacts. It concludes that the theory is not suitable enough to define a business angel entrepreneur relationship (Cable Shane, 1997).Resource Based TheoryThe resource based theory has many influences on the entrepreneurship. Business angels can contribute many resources other than cash it self. According to Freear, Sohl and Wetzet (2002), angel investors can contribute five types of resources to an entrepreneur Human, physical, social, organizational financial.Human capital can be taken as angel investors contribution of business knowledge, skills and business experie nce to the firm (Erikson Nerdrum, 2001a). Social capital can be gained when business angels provide their business contacts (Angel networks). By this, the entrepreneur has the opportunity to meet other investors and extend the funding possibilities to the business. Physical resources can be machines or factories and organizational capital can be described as the influence and advice the investors can give for the business for an example making the business improve on its experience (Erikson Nerdrum, 2001b).Financial capital consists of the funding provided in the beginning of the start-up phase (Cassar, 2003). By far this presumed to be the best suited theory to define a relationship between a Business angel and an Entrepreneur where all aspects are covered (Rose, 2005).Summary Of TheoriesLooking back at the efficient market theory, Agency theory, Prisoners dilemma framework and Resource based theory it seems to be that the Resource based theory is the most suitable theoretical fr amework for the Business angel investments. However the Resource based theory has to be amended with few assumptions Human capital should be taken as the (knowledge, skills business experience) investors contribute with (Ardichvili et al. (2002).Although we discussed the above theories, many researchers have described and tried to apply other similar theories to the investor investee relationship Example Procedural Justice (Busenitz, Fiet Moesel, 2004), learning and knowledge-based view (De Clercq Sapienza, 2002), resource exchange theory (Gomez-Mejia, Balkin Welbourne, 1990).All the investment theories have a common characteristic that have only a few relevant investment features in them to the investor-investee concept. To make it applicable for the Business angels and entrepreneurs all these theories should have few amendments and adaptations (Sapienza, Manigart Vermeir, 1996).Small And Medium Enterprise (SME)William Kendall, the Chief Executive of Whole Earth Ltd stated, S ME business is a fantastic place to work. You have to think innovatively to be an entrepreneur. Its thrilling and its enjoyable.According to (European Industrial Relations Observatory) there is no general definition for SME. But the (Governments Bolton Committee, 1971) cited that the characteristic of a SME firm is a self-sufficient business being owned by a single owner with a small market share. The report also stated that the size of the SME changes in different industries.Although it is hard to give one specific definition for SMEs, it can be measured and classified by numbers (employees revenue rates). The defining measurements are as followsDefinitions (The Department for Business, Enterprise and Regulatory Reform BERR, UK) has defined SME with 3 types of measurements and those are based on amount of employeesMicro firms 0-9 employeesSmall firms 0-49 employees andMedium firms 50-249.The (European Commission) changed the definition of the SME to increase the partnerships and innovations. The definition which took affect on 2005 is A Micro, Small and Medium-sized enterprise (SME) is made up of firms which employ less than 250 employees and have yearly revenue less than 50 million euro.Importance Of SME In The UkThe country has raised the level of growth productivity in the last era reducing the competition gap between other countries like US, France Germany (BERR, 2008).Currently UK is reacting well to the global prospects and challenges. The growth of the SME market increases each year promising to boost the economy of the country. According to (European Business Angels Network (2007) Dissemination Report on the Potential for Business Angels Investment and Networks in Europe), the employment and annual revenue contribution of the SME industry as a whole is more than 50 percent of the total.The UK government provides necessary support for people to step up and start their innovative business to increase the competition level of the country (www.berr.go v.uk).The EntrepreneurEarlier it was discussed that previously recognized agency theories explains that the investor, ensuring a healthy relationship is highly regarded as a successful investment aspect in an investment (Kelly Hay, 2003). Therefore exploring more about what authors have studied about entrepreneurs and investors is vital.The difference between a formal venture capitalist and a business angel is that a venture capitalist invests looking at the company and its ability to perform (Schramm, 2004). On the other hand the business angel focuses mostly on the entrepreneur to make sure there can be a good business relationship (Mark and Robinson 2000, p138). The entrepreneur is the only key to get the funding needed for a start-up business. As an entrepreneur, it is vital to gain the investors trust and confidence in the business idea. According to (Osnabrugge Robinson 2000, p123), it is cited that during a business start-up there is a high percentage of entrepreneurs faili ng to make good management decisions in the initial stages. It is very sensible for an entrepreneur to seek a business angel as they pay special interest on the business they invest in with all their resources including non-financial contributions. It could help fill all the management weaknesses of an initial stage of the business and save huge amounts of consulting and managerial costs (Mason and Stark, 2004).Entrepreneur Evaluation(Osnabrugge Robinson, 2000) had explained that entrepreneurs should be aware that the investor not only pays attention on the business proposition but also the entrepreneur himself to ensure the safety, confidence, enthusiasm and the ability to depend on the entrepreneur. Trust is something investors work hard to find in an entrepreneur, because they invest large amounts of financial resources on a person they met in a short period of time (Osnabrugge Robinson 2000, p125). According to a study conducted by Stedler and Peters entrepreneurs capability t o convince the business angel to invest is very important and showed that 81% of business angels has expressed that a positive first impression established in the first meeting as important (Stedler and Peters, 2000).When it comes to angel investment decisions being made, business angels need to ensure that the entrepreneur should be a proficient manager (Gerald and Joel, 2000).Loyalty, leadership, reliability and personality are important characteristics that angel investors look into when they evaluate entrepreneurs. An entrepreneur should be able to have those qualities to gain an influence of the investor (Aernoudt 1999 Sappa 2006). The characteristics that separate a good ownership from a poor is, that if the entrepreneur is able to establish trust and leadership skills with confidence and make the employees follow him/her (Micah Baldwin 2007).Investors find it comforting to know that the entrepreneurs have invested partly on the business before seeking external investment. Th is gives the investor the idea that the entrepreneur has given all the effort in the involvement of the process and that the financial value of the business is appreciated (Osnabrugge Robinson 2000, p127).According to (Sappa 2006), business angels take lots of time and effort into finding out background information on the entrepreneur to ensure that the owner has the right expertise to manage the business he proposes. (Haines and Riding 1998) corroborates furthermore by adding that the entrepreneur sharing his/her previous business experiences and being much more practical about the business brings more information and confidence to the investor.Finally all the above characteristics that were discussed are very important for a new start-up entrepreneur to influence investments from professional business angels.Business AngelsAs we have gone through the theories of business angels it is important to know who business angels are in the minds of researchers. A business angel is a high ly prosperous individual who can be a business person and willing to invest part of his/hers finance on a promising entrepreneur who has a potential to succeed (Isakssin 2000, Helle 2004).According to (Harrison Manson, 1999), there are three eras of business angel researches conducted in the investment businessFirst era of business angel research was conducted by United States of America in early 1980s. Authors like (Landstrom, 1993) from Sweden and (Harrison Manson, 1992) from United Kingdom repeated the same work by giving out similar results. In this era it was solely concentrated on business angels thoughts, activities and characteristics (Freear, Sohl Wetzel, 2002).Second era enabled researchers to go deep into business angels by investigating their post investment involvements. Theory building up and applying for business angels began in this era. Although there were theories built for business angels, it wasnt developed enough to be completely suitable for the activities o f angel investors (Connolly et al., 2006).Third era will be the era about the future researches of business angels. There were many faults in the previous researches done and they need to be taken in a new direction to make sure the researches investigated will produce good results (Arenius Minniti, 2005). This would finally make us understand the minds of business angels and match the Business angel Entrepreneur relationship under changing economy, culture competition (Connolly, OGorman Bogue, 2006). By the help of (Harrison Mason) Swedish researchers like (Sorheim 2005) will enable to investigate on the changing environment of Business angels. This also mean that the theories being found in the previous eras could finally be developed enough to apply on the business angels current investment methods and get positive results (Gompers Lerner, 2007).Characteristics Of Business AngelsAlmost all the business angels who actively invest on new businesses have few common characteri stics. They all have the main motive to increase the potential of their financial capital (Duxbary, Haines Riding 1996). But (Landstrom 1993, Osnabrugge and Robinson 2000) explained that all business angels should not be profiled in a similar way because cultures and person to person could make them different to each others ways in terms of making a personal investment decision.Although there could be many differences between business angels, (Osnabrugge and Robinson, 2000) also stated that there are general motives behind all business angels when it comes to a certain result they expect out of an investment. When Venture capitalists and business angels are taken together it is wide clear that Business angels are individuals who prefer to invest less financial capital than of the formal investors who invest large amounts. Business angels also prefer to invest their money mainly on initial stages of a business (Osnabrugge and Robinson 2000). When it comes to formal investors, they a re selective in industries they invest on depending on a lot of information and research. But the Business angels invest on the entrepreneur regardless of what industry sector the business idea would succeed on. They do little research on the industry but heavy research on the entrepreneur they expect to build a trust worthy relationship, because they depend on the entrepreneur much more than the venture capitalists that only rely on the market and the performance of the company (Osnabrugge and Robinson 2000, p63). Furthermore a research conducted in the Norwegian angel market and studies conducted in the US have identified several angel categories.There could be cultural and economical differences among countries like (UK, Sweden Singapore) but angel investors do have likely investment standards in those countries (Landstrom 1993). (Freeny, Haines Riding 1998) explained that the markets which business angels are currently active are where they are wiling to invest more on.There c ould be many differences in Business angels personalities and points of views of the whole investment process. There are studies that showed the most regular business angel. It is stated that the age, where successful individuals decide to invest their money on a business is when they get to their 50s. This shows that it is almost a retirement phase from a business point of view. This can be confirmed by a research carried out in Germany where it stated that 95% of BAs were male individuals, 56% were directors or owners of their businesses and 17% were individuals who were in the director board on other organizations (Stedler Peters, 2003). Even (Osnabrugge and Robinson 2000, p156) supported Stedler and Peters by explaining that the individuals were in director posts and had good business experiences before they decide to move on into personal investments.Most business angels involve themselves heavily during the initial stages of start-up businesses. They wish to invest near to th eir homes to make sure of convenience. And Business angels are well educated, wealthy beyond a certain average and expect to have a good life with their feet up on a desk holding a glass of wine, which we all hope to achieve one fine day (Freeny, Haines Riding 1998).Although this thesis aims to look at the characteristics of UK business angels, it was clear by all previous studies that there are common statistics about their decisions and behaviors. This tells us that, UK angel investors too are not far from what was described before in the theories. Still it is important to point out few common characteristics of UK business angelsCommon Characteristics Of UK Business AngelsAccording to (Ardichvili et al., 2002), Business angels in the UK have been or still are active business owners. They invest in more similar markets to what they are operating in, which saves them a lot of time trying to understand the market and the operations.Like all business angels, UK investors are highly motivated by the return of their investments and the effort (non financial motives) they have put in to the start-up business. They do enjoy being a part of a new business hoping to succeed for the better part of the community and the country (Landstrom 1993).Furthermore UK business angels prefers and makes sure they invest on new businesses that they could visit regularly, which means they invest in promising firms which will locate geographically near to where they reside (Ardichvili et al., 2002). BAs would rather invest in firms within their residing area, than investing in a location where they find it hard to meet the entrepreneur even though it would double their investments (Harrison, Mason Robson, 2003). Most British angels prefer their entrepreneurs operate within 100 miles of their homes although investors who invested on technological businesses are willing to travel long distances (www.bbaa.org.uk).According to Mason, British angels mostly prefer to invest on small bus inesses during its initial stages where it is not too late to put in not just their finance sources but their advice and experience to get things on the right track. This, in a way gives them satisfaction of being a part of a promising business (Mason, 2002).After going through the common characteristics of British Angel Investors, it is quite clear that there isnt a major difference compared with the international countries like Sweden and Denmark which will be discussed later. We discussed about Business angels and it is vital to know the categories of their investments.Investment Aspects Of A Business AngelOne of the objectives of this thesis is to find out how Business angels in UK and other similar countries decide to invest on a certain investment they find it promising. An investor looking for good reasons to decide on an investment is known as Investment Aspects or Investment Criteria (Landstrom, 1993). It is a way of evaluating the business and the entrepreneur to ensure th e security and the profitability of the business proposal.According to the venture capitalism and angel investment comparison carried out by (Osnabrugge Robinson 2000), it revealed that although there were similarities among their attributes in their investment standards there were a certain amount of dissimilarities which makes business angels favorites for a new start up business.For an example, venture capitalists are prepared to invest almost in all stages of a business and therefore they look into all the past and probable financial records of the company. On the other hand the business angels much prefer to invest on a start-up phase of a new business where past financial experiences are not so important to them(Osnabrugge Robinson 2000).Most business angels give similar priorities to investment aspects, when it comes to making a decision. With much researches conducted over the past years (Osnabrugge Robinson 2000) has come up with a selected summary that illustrates the c riteria of an investment. The following (Table 1) of twenty-five selective factors are prioritized by well known angel investorsPriority orderPriority factors for an investment1passion of the industrialist2Dependability of the industrialist3Sales prospective of the product4proficiency of the industrialist5Entrepreneur(s) first impression6Development prospective of the market7Quality of the product8Benefits