Please respond to the following inquires by addressing them all in one structured response (by structured this means that the response is one cohesive piece of writing with sections - this would include an introduction, conclusion, etc.)
What are the various sources of funding available to entrepreneurs, including venture capitalists, and what potential implications/pros and cons does each bring to funding start-up ventures? What are the advantages and disadvantages of accepting outside financing for a specific venture? Include a discussion on the various types of funding an entrepreneur can receive, including a comparison of the types of funding and stage of growth the new venture is in when receiving it, including implications. Discuss the criteria used by venture capitalists and other financing sources to assess the potential investment opportunities of supporting a business venture. Are there differences between venture capitalist/funding sources and entrepreneur expectations relative to these criteria. How can these differences in expectations between venture capitalists/funding sources and entrepreneurs be resolved.
Reading to help answer these questions:
Broude, Paul D., Joseph E. Levangie (2006, Fall), Entrepreneurial Financing - Alternatives for Raising Capital, New England Journal of Entrepreneurship, 9(2), 55-52. Retreived through WebFeat.
Proimos, Alex, Wayne Murray (Summer 2006), Entrepreneuring into Venture Capital, The Journal of Private Equity, 9(3), 23-35. Retreived through WebFeat.
Anonymous. MIT Entrepreneurship Center. Key issues in financing. Retreived from http://entrepreneurship.mit.edu/15975-session-6.
Entrepreneurs may be defined as the individual who undertakes the whole responsibility of a business enterprise including the risk and the profit associated with the business (Preston, 2007). The most important thing to become entrepreneurs is the availability of finance. The paper will discuss different source of funding available for entrepreneurs along with their positive and negative aspects. The paper will also discuss the different between funding source and entrepreneurs' expectation along with resolving these differences.
Sources of Funding for Entrepreneurs
Determination of the right source of funding is very important for the entrepreneurs for start-up of their business. It not only helps in smooth functioning of their venture, but also formulates a base for their existence. Following are some different source of funding available to entrepreneurs for their start-up venture:
Informal investment: This is the easiest way of raising funds for the entrepreneurs. Under this source of funding, the amount is raised from the family or the friends to start a business (Harper, 2006). There are various advantages of this source of funding for entrepreneurs. One does not have to give interest on this amount and there is also no time limit to return this amount to family or friends due to appropriate flexibility. As during the beginning of the business, there is no idea regarding the profit or loss, so it would provide enough time to entrepreneurs to return this amount (Frederick, 2005). But it is also have some disadvantages like it may affect the relationship with the failure of business enterprises. At the same time, a large amount is not possible through this source.
Government funding program: This is ...
This solution is comprised of a 1075 word response on the topic of entrepreneur ventures, with the focus of this response being on the subject of how entrepreneurs can effectively attain funding to allow their ventures to run successfully. Seven references are also provided as sources of further information.