Presently, the equity ownerships of most micro/small private companies are highly illiquid and often exist in lumpsum or wholesome which increases their rigidity plus risks and makes it harder for these private companies to attract capital from traditional debt and equity financiers.
We propose that like the ownership of the large public and private companies, those of the private companies should exist in small fractions (shares) that are priced, so they can be frequently and privately traded and exchanged in shares at fixed prices during fixed periods. The idea is that the share prices must also be fixed to remove problem of price volatility during the frequent fractional trade, during the pre-determined fixed trading period as well as assist entrepreneurs save smartly when the make repurchase. In spite of all the noise made by and about business angels and venture capitalists as providers of equity-based finance, they only support about 20% of global entrepreneurs/managers of private companies – thus failing to reach out to the majority – up to 80% of these entrepreneurs. Driving the transformation of global entrepreneurship and acceleration of social and sustainable green businesses (enterprises) means that we must figure out alternative approaches to get catalytic capital faster and cheaper to the entrepreneurs starting and scaling profitable and sustainable businesses around the world. There are over 400 million micro/small private companies that operate within the global MSMEs market. We need to empower at least a quarter (100 million) of these micro/small private companies worldwide that are limited by shares so they can be in a better position to support up to 1 billion buyers as consumers (employees and customers). The consumers can then plan, purchase, and pay for valuable assets mainly real estate assets (soft or hard real estate) and other assets with potential to generate regular passive income over medium to long period.