Financing a Small Business Essay

Financing a Small Business Essay

Length: 1535 words (4.4 double-spaced pages)

Rating: Powerful Essays

Open Document

Essay Preview

For many years, economist viewed entrepreneurship as a small part of our economy. Whether they are students (typically college or high school) recent college graduates, unemployed, or newly retired from one career, today entrepreneurs have a central role in the economy. According to the research I have conducted throughout the semester, an entrepreneur is defined as someone who identifies a business opportunity and assumes the risk of creating and running a business to take advantage of it. Two important characteristics of a businessperson are risk-taking and innovation. The most common reasons for starting a business according to the Small Business Administration are: to be your own boss, to accommodate a desired lifestyle, to achieve financial independence, to enjoy creative freedom, and finally to use knowledge or skills. Starting a business can be exhilarating and wildly fulfilling. However, it can be quite complicated, and may challenge you in ways you had not imagined. Knowing the challenges and problems you may encounter in your start-up can help you to prepare for the unexpected, and possibly help avoid common drawbacks. The SBA points out that many new entrepreneurs will have questions about where and how to begin because business owners trigger the production and sale of a new product or service. New entrepreneurs will need professional, expert help to start and run a small business effectively and successfully. The financial resources needed to start or grow a business can be extensive and an entrepreneur must identify when and how to ask and receive financial assistance.
Financing a small business is a very crucial process for the entrepreneur and it’s hard to get the financing need for your start-up. According to the ...


... middle of paper ...


...eurs play a central role. According to the research I have conducted throughout this semester, an entrepreneur is anyone who dreams working for themselves. Financing a small business is a very crucial process for the entrepreneur. Many business start-ups fail each year because of the lack of thorough research and planning, poor management practices and principles, and lack of financial resources. In other words without financial stability one cannot run a successful business. Overall, I have come to believe that doing some extensive research before starting your business, and taking additional training classes can help with success in funding and growing your business.



Works Cited

Cooper, Sharon. Personal interview. 17 Oct. 2013.
“Exploring Business” Flatworld Knowledge. Web. 27 Nov. 2013.
"Starting a Business” SBA.gov." Starting a Business. Web. 17 Nov. 2013.


Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay on Buyer Financing : Small Business Lenders

- Seller Financing Most banks say that they are small business lenders. The missing part of that statement is how banks define small businesses and what banks will lend money for. From the bank 's prospective, a small business is an established business and not a new business. Moreover, banks lend money primarily for tangible assets that double as collateral. Banks rarely lend money to start up a business since there is not a track record of success and when they do, they only lend money for tangible assets....   [tags: Debt, Money, Asset, Loan]

Powerful Essays
908 words (2.6 pages)

Financing the Purchase of a Website - The Small Business Administration (SBA)

- Financing the Purchase of a Website - The Small Business Administration (SBA) Reprinted with permission of VotanWeb.com One of the Small Business Administration's primary objectives is to help small businesses obtain financing. Although the SBA itself does not make direct loans, it has set up a number of loan programs to assist small businesses. In connection with most of these programs, the SBA provides guarantees to the private sector lenders who actually make the loans. With this guaranty in place, these lenders will generally make loans for the purchase of websites that they would not otherwise make....   [tags: Sell Websites Buy Websites]

Free Essays
765 words (2.2 pages)

Business Strategies For Small Business Owners Essay examples

- Problem Statement In the United States, there are over 18,000 companies with revenues of $35 billion combined. Most of this revenue is from companies that have over 60 accounting firms. The profitability of these firms depends on the market (First Research, 2014). In reviewing the literature on Small business owners, I would say that the business strategies are different in large companies than small business owners. Specifically, financial planners are trained to provide planning services. The training is rigorous and focused on technical expertise but does not include marketing techniques or business operations....   [tags: Small business, Business, Management]

Powerful Essays
1246 words (3.6 pages)

The Success Of A Small Business Essay

- An entrepreneur is someone who is tired of living in the shadow of his or her boss and decides to be their own boss. Over 50% of the working population work in small businesses, and of these small businesses 22 million out of 28 million are self-employed. Sadly, approximately 534,000 new small business get started each month but more than that shut down monthly. The US economy depends on entrepreneurs and their small businesses to survive. Yet most people never take time to think about how to start their businesses properly and keep them making money....   [tags: Small business, Entrepreneurship, Business]

Powerful Essays
1022 words (2.9 pages)

Essay on Reasons For Failure Of Small Business

- Over the years, many people have started small businesses, but not many have succeeded. Some get lucky and some just don’t have the tendency to proceed after a certain number of years. As stated, more than half of all small businesses fail within the first four years. There are many factors. for example, one could be poor management leading to loss of staff due to lack of motivation. Another factor could be making wrong business decisions that lead to loss of profits and force them into bankruptcy....   [tags: Small business, Business, Business terms, Failure]

Powerful Essays
722 words (2.1 pages)

Essay on Creating, Financing, and Marketing of Business

- According to Mary Hanson (1998) no agreements are required to form a partnership, but if preferred you may write an agreement up. The most convincing idea of a partnership is the ease that a partnership may be created and handled. Within a partnership registration with the state and fees are not needed, as they would be within an established business or a limited liability company (LLC). Within a partnership taxes are done easier as there are no taxes on the “partnership” rather only the partners, so there is no reason to file separate tax returns for the business and the owners (All Business, 2012)....   [tags: Marketing ]

Powerful Essays
1711 words (4.9 pages)

Small Business Administration (SBA) Programs Essay

- As larger franchise continue to grow and take over the market place small businesses find them selves falling behind financially. With recession and the hard times it has created since 2008 small business continue to struggle to thrive and grow. Throughout this struggle the Small Business Administration (SBA) Loans programs have come up with a way to help the small businesses stay afloat. They help small business get access to financial assistant programs that have been create to help meet their needs including, debt, company growth, general company needs and capital....   [tags: Small Business Administration]

Free Essays
1414 words (4 pages)

The Small Business Administration (SBA) Essay

- The Small Business Administration (SBA) In July of 1953 the United States Congress amended an act called the Small Business Act. Many believed that the essence of the American economic system of private enterprise is free competition. Also, that only through full and free competition can free markets, free entry into business, and opportunities for expression and growth of personal initiative and individual judgment can be assured. Thus, the Small Business Act was amended. In order to carry out the policies of this Act there was hereby created an agency under the name "Small Business Administration"....   [tags: GCSE Business Marketing Coursework]

Powerful Essays
1653 words (4.7 pages)

Essay on Funding A Business Venture

- Investment bankers are individuals who are responsible for underwriting securities of a company. I have discovered that investment bankers manage the issuance of bonds and counsel their clients on high level issues of financial organization. They also propose and complete strategies for acquiring and merging with other companies, and manage selling a company’s stock. In my opinion, this profession is very important in that, generally speaking, investment bankers are crucial figures in shaping American and world economies, along with the success of your personal business....   [tags: business, financing]

Powerful Essays
708 words (2 pages)

Debt Financing Essay examples

- The financial plan of any company is important. One of the most important factors or decisions is the plan to use debt financing, equity financing, or a combination of the two. The decision to go with one or the other is large and mostly relies on personal feelings about the topic. Some owners want full control and therefore lean to debt financing and others lean to equity financing with the ability to give up some control of the company. For the hard charging entrepreneur, the most control is best....   [tags: Business Finance]

Free Essays
1080 words (3.1 pages)