Sources of Finance to Entrepreneurs

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MZUMBE UNIVERSITY
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MAIN CAMPUS
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SCHOOL OF BUSINESS
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COURSE: MBA- COPORATE MANAGEMENT
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SUBJECT:
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CODE:
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LECTURER:
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NAME OF THE STUDENT:NDUTU, Fatuma
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REG. NUMBER:MBA/CM/MZC/028/T.12
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NATURE OF WORK: TERM PAPER
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DATE OF SUBMISSION: 25TH APRIL, 2013
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TASK: Financing is a critical issue to entrepreneurship and small business management owners. -------------------------------------------------
What would you envisage to the alternative sources of mall business in Tanzania. -------------------------------------------------

1.0 INTRODUCTION

2.1 Definition of key terms
Financing studies and addresses the ways in which individuals, businesses and organizations raise, allocate and use monetary resources over time, taking into account the risks entailed in their projects. Generally finance may thus incorporate any of the following: the study of money and other assets, the management of those assets and profiling and managing project risks.

An entrepreneur is an individual who accepts some sort of risk usually financial in the pursuit of new ventures. The word can apply to any person organizing a new project or opportunity, though it is most often used in a business context. A person in this role is often characterized as innovative, independent, optimistic, creative, and hard-working (www.wisegeek.org). An entrepreneur is a person who organizes and manages a business undertaking, assuming the risk for the sake of profit.

Entrepreneurship refers to a process of conceiving a business opportunity and then being bold enough as to take the initiative to realize the conceived business opportunity through the creation of a new venture. The term entrepreneurship is defined by Cronjé (2005) as a person who has innovative ideas, identifies opportunities, finds resources, takes financial risks, re-energizes economies and creates jobs to bring about change, growth and wealth.

2.0CONCEPT OF ENTREPRENEURSHIP AND SMALL BUSINESS
Entrepreneurs are individuals who identify market needs and launch firms to meet those needs. Unlike salaried employees, entrepreneurs assume ownership risks. In most literature on entrepreneurship, entrepreneurs include not just the founders of business firms but also second generation operators of family owned firms, franchisees, and owner managers who have bought out the founders of existing firms" (Longenecker, Moore, and Petty, 2003). Although the terms entrepreneur and small business manager are not synonymous, most entrepreneurships begin as small businesses. Currently, most African entrepreneurs manage their small-scale enterprise, hence we use the terms entrepreneur and small business interchangeably. Consistent with the definition of a small business by the African Development Bank and the International Finance Corporation, a small business has been defined as a firm with less than 50 employees or assets of less than $15 million.

Small scale enterprises worldwide have been recognized as engines of growth and development...
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