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    Entrepreneurship: Difficulty of Raising Capital in a Small Business

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    Andy has joined your small business owners group and is recounting his difficulty in acquiring financing. 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? Support your work with reliable outside sources.

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

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    https://brainmass.com/business/entrepreneurial-issues/entrepreneurship-difficulty-raising-capital-small-business-351284

    Solution Preview

    Andy has joined your small business owners group and is recounting his difficulty in acquiring financing. 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? Support your work with reliable outside sources.

    It is difficult for the small business owners to raise the capital to start, operate or expand the business because small business owners lack the basic knowledge about the presentation of business plan to the banks. According to the United States' Small Business Administration (SBA), approximately 90% of all small enterprises fail within the first two years of operation, primarily because many entrepreneurs lack the basic knowledge and experience in handling the challenges of their company in its initial stages. Other mistake done by small business owners is excessive spending and because they ...

    Solution Summary

    This solution discusses the ability and strategies for small businesses to raise capital and stretch their capital requirements in approximately 500 words with four online references.

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