busn 491 week 8 response 1
I must respond to what is below in 250-300 words in APA format.
An economy is the wealth and resources of a country or region, including its financial structure (Mariotti, & Glackin, 2016, p. 4). In America our economy is of an abundance where entrepreneurs of new and old are able to obtain financing for their business start-up or just to further fund the growth of there existing business. As an example, for new entrepreneurs there is bootstrapping, bank loans, angel investors, incubator, and kickstart. For the entrepreneur that has been in business and just need that extra boost in capital, there are account receivable (A/R), venture capital, and more.
As an entrepreneur, starting up a business overseas limits my access to financing methods available in America. I could proceed in an unethical means however, wealth gained by vanity will be dismissed, but he who gathers by labor will increase (Pro. 13:11, KJV) and this is not the route I would take.
After much consideration and analysis of the various methods to secure initial capital in starting up my new business venture, bootstrapping is the best option. Opening up a bed & breakfast overseas is very high risk and will not attract venture capitalist, angel investors, SBA loans, nor the traditional bank loan. I cannot incubate else it may not get off the ground. I could probably kickstart the start-up however if the target value is not met, I will be back looking for capital. Which then leaves me to account receivables and since the revenue are still to be determined, no A/R financier would take the risk.
Bootstrapping is my best option. The beauty of bootstrapping gives me full control of how I choose to run the business and should business fail, I also fail. According to Wallbank, P., the benefits of bootstrapping forces management to focus on the product and customers while giving founders full control of the business (2012). The drawback is as mentioned, if the business fails, I fail and loose all that I invested but then again, since the bed & breakfast will be overseas, I just might turn it into a vacation home.
References:
Mariotti, S. and Glackin, C., (2016). Entrepreneurship: Starting and Operating a Small Business. (4th ed.). New York, NY: Pearson
Wallbank, P., (2012). Decoding the new economy, Society and Business in the 21st Century. The pros and cons of bootstrapping. Retrieved from http://paulwallbank.com/2012/01/09/the-pros-and-co…
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