This paper will describe the challenges associated with newly formed enterprises, the viability of niche products being introduced into bigger markets and the impact that they entail, and also discuss the reasoning behind consumer’s fascination with exclusivity. Six examples companies will be provided to explain how these factors worked into their success. Challenges of Business in Today’s Economy
Identify at least three challenges when setting up a business. Explain why they are challenges. In today’s credit crunch global economy many entrepreneurs are faced with the daunting tasks of not only finding the necessary resources to produce their products, but the funding and crucial business structure in order for their livelihood to stay profitable.
Funding and Lack There Of
Raising startup capital is an extremely huge task when attempting to set up your own business, especially in today’s credit tight economy. Finding the source to secure the financing necessary to purchase even the basic necessities, such as equipment, acquisition of property, and the hiring of personnel, (Bradsheet) can be one of the most daunting tasks an entrepreneur can partake in. In most cases when starting a business there are two ways to procure the essential funding needed to make this happen; debt financing and equity financing.
Debt financing is the main source of startup capital for many new business ventures. Generally, entrepreneurs will attempt to take out small business loans through banks. This method is by far the most reliable way to secure a business’ commerce. However they are several drawbacks and obstacles associated with this type of financing.
(Debit Financing) The banking industry has implemented many stipulations before they will even offer you a single dime. Many banks now require a solid income history based on previous tax returns, to prove whether or not in fact a person has the ability to pay the...