MGT330 University of North Carolina Financing for Startups Paper

User Generated

Y942012

Business Finance

MGT330

University of North Carolina at Greensboro

Description

Entrepreneurship: The Practice and Mindset (Interactive Edition) by Heidi M. Neck, Christopher P. Neck, and Emma L. Murray. SAGE Publications (2017).

Upload the answers to five Critical Thinking Questions from Chapters 13 and 14 here.

Answer only questions from the following Critical Thinking Question groups:

  • Entrepreneurship in Action
  • Research at Work
  • Entrepreneurship Meets Ethics

Answer no more than one question from any given set of questions. Each answer should be 200 words minimum!

Also, can you please show which group each question came from..

Like a header with one of these categories:

  • Entrepreneurship in Action
  • Research at Work
  • Entrepreneurship Meets Ethics

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Here is the complete assignment. Let me know if you need any edits

Running head: FINANCING FOR STARTUPS

Financing for Startups
Student’s Name
Institutional Affiliation

1

FINANCING FOR STARTUPS

2
Financing for Startups
CHAPTER 3

Entrepreneurship in Action
What are the potential risks involved in personally financing startups in the early stages?
Business growth is expensive and requires resources to graduate from a start-up to a fully
established business. In most cases, there is limited budget and resources for startup self-funding
hence the risk of slower growth. Self-funding limits entrepreneurs from hiring employees,
launching big marketing and advertising campaigns, create, test, and roll out products at a faster
rate. Moreover, self-funding puts the entrepreneur at the risk of running the business with no
external advisors or connections for faster business growth. Outside perspectives which come
along with outside investors are invaluable in business yet entrepreneurs risk missing
opportunities when they bootstrap and which could lead to slower growth or failure. Some
startups require products to be manufactured before market demand and thus need a significant
amount of capital to start. In such cases, self-funding limits the entrepreneur’s ability to invest in
market validation to establish if the product will sell or not. Creating an inventory without actual
demand is highly risky and could lead to loss of money or business failure if the product fails to
sell. Furthermore, bootstrapping compels entrepreneurs to bring products or services to the
market to generate profits and revenue to help keep the business afloat. However, delivering
product and services more quickly into the market could compromise quality and eventually lead
to business failure.

FIN...

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