Funding Sources - Identifying the Best Option(s)
Entrepreneurs need to not only be aware of the different options for funding, but they also need to know which particular sources would be most appropriate for them to pursue. Someone fresh out of college with a good idea and little else is unlikely to obtain bank financing for his or her business. That is why it is critical to be aware of the whole range of options.
Based on the resources for this week, match the new business you selected for your Course Project to the appropriate source of funding as shown in Figure 11.1 of the course text.
Your memo should include the following:
- Your selection of which source of funding you selected.
- Your assessment of the options with the criteria and evidence you used together with any assumptions you needed to make to evaluate the options. Be sure to include your analysis of how having this variety or potential sources can be an advantage to entrepreneurs and the impact on entrepreneurship these sources can have.
- The benefits and risks of your selected option and your plan to mitigate identified risks.
- The extent your personal values and ethics play a role in your evaluation of the various options. What steps do you think entrepreneurs need to take to ensure that the sources they use conduct themselves responsibly?