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    Small Business: Raising capital

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    Both Rhonda and Andy have joined your small business owners group and are recounting their troubles with acquiring their finances. This leads to a discussion on the following:
    Why is it so difficult for most small business owners to raise the capital needed to start, operate, or expand their ventures?

    How can a firm employ bootstrap financing to stretch its current capital supply?

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    Solution Preview

    The response addresses the queries posted in 473 words with references.

    //Before writing about the difficulty of small business owners in context of the issue of raising a capital for starting a business, it is essential to have knowledge about the significance of capital for the business. One should know about the sources of capital to start any new business//

    Insufficient capital is the primary cause of failure in many businesses. To start any new business, to operate it and to provide an opportunity for growth and expansion, adequate amount of capital is needed. Small business owners have to face the most difficult challenge of accession of capital (Searching for Capital, 2008).

    The availability of sources and amounts of external capital to the small firms are affected by many factors like stage of product development, availability of capital, risk, ownership structure, firm type, and sales history ( Use of Bootstrap ...

    Solution Summary

    This response addresses the queries posed in 400 Words, APA References