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Startup financing

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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 Summary

It is difficult for small business owners to raise the capital for starting, operating or expanding their business because sources for funding or raising capital are limited to these businesses due to their small size.

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It is difficult for small business owners to raise the capital for starting, operating or expanding their business because sources for funding or raising capital are limited to these businesses due to their small size. For example, sources such as raising capital via selling equity to public investors or private equity investors, raising debt via ...

Solution provided by:
Sheetal Jain, PGDM
Education
  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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