An innovative business model that would allow very small companies to receive free accounting services and fast access to financial services

Abstract

The main objective of the Thesis is to provide a simple solution for early stage enterprises to access top professional accounting and financial management services at no direct costs. The focus is on radically change the classic business model of accounting service providers. Additionally, the Thesis investigates different sources of monetization for the new business model, mainly from Financial Services industry. The Thesis is based on a personal observations, online validations and pivoting ideas approach. It concentrates on suggesting practical changes in current business models. The more than 20 million SMEs in the EU represent 99% of businesses - according to European Commission - and are a key driver for economic growth, innovation, employment and social integration. What is even more intriguing is that nine out of ten SMEs are actually micro enterprises with less than 10 employees. Hence, the mainstays of Europe's economy are micro firms, each providing work for two persons, in average. If SMEs are to have a significant impact on Europe's economy, they need to grow bigger - take on more employees, and expand their product ranges, markets and turnover. In many cases, the skills and experiences of an entrepreneur are not necessarily sufficient to grow the business to a much larger size. Further stages in the company's development require, amongst other things, new technologies and the know-how to implement them, new staff, with additional skills, and access to new markets. And of course, financial investment is a major requirement for growing a firm, as is often face-to-face advice and support and help in accessing new markets. On the other hand, nowadays financial institutions would spend pretty much the same amount of time and human resources to service a company in the micro stage, as one that is more developed and has already a longer business history. My Master Thesis would solve both problems, letting companies in the micro stage to receive free professional accounting services and banks to be able to serve more efficiently such large population (in terms of number) of companies with a positive impact on both expenses and revenues.