Business development funds are state or institution sponsored funds for the development of various kinds of businesses that are in need of urgent funding due to either small size or other criteria that make them eligible for such funding.
Business development funds have helped many people in the third world countries to overcome difficult crises, and get back on their feet through micro credits provided by business development funds of industrialized countries. A very famous example of such micro credits helping, those that are in the biggest of needs are the micro credits that the US business development funds provide for abused women in Asia. There are many women that were either cast away from their families and/or rescued from brothels that had no other choice but to apply for micro credits provided by business development funds, and as a matter of fact many of them have achieved considerable business success and some have even become famous and started their own business investment funds.
Of course business development funds are not only funds that are given by industrialized countries to developing ones. They also include state or institution sponsored funds for internal business development.
Some countries or states of a union develop those funds in order to boost some business or industrial branches that are currently undergoing a recession or having a general hard time, as well as they sponsor small or emerging private business that are of importance for the state, province and/or county in question.
Some financial institutions like banks or trusts also tend to create their own business development funds for a huge variety of reasons. Some of them might be dependent on the business they are trying to improve or bail out; some of them are maybe preparing to invest into a certain branch of business in a certain area, so helping those out suits the bank’s long term investment projections.
A business development fund can also be implemented in order to help out an emerging artist or a group of artists ranging from painters to fashion designers. There is huge money in the world of the arts and if a business development fund helps an emerging painter or a fashion designer reach stardom, we are talking about millions, maybe not right away but the advantage that the governments and financial institutions have over simple mortals is the fact that they can wait long time, including decades in order to achieve their desired goals.
This is precisely what business development funds do; they help you out of trouble on short term basis and then collect the benefits on long term basis.