The paper "Entrepreneurial Challenges Experienced by New Ventures" is an outstanding example of a business essay. Many of the companies that we see today started as an individual or familial startups, which later grew into large firms. While some of these firms have ventured into the international market and even become public enterprises, some of them are still under the control of family members who hold significant stock therein. According to Kachaner, N. Stalk, G. & Bloch, A. (2012), family-controlled firms contribute 30 % of all the sales of companies that exceed 1 billion dollars in the world, with some of the firms including the Tata Group, Samsung and Walmart, among many others.
Notably, family-controlled businesses are prevalent in Middle East countries, in which they contribute approximately 60 % of the GDP of these countries and employ over 80 % of the workforce therein as well. In addition, many Middle East family firms manage franchises of large international corporations. Unfortunately, for the startups in the United Arab Emirates, 95 % of them were owned by expatriates (Arabian Gazette, 2015).
The ensuing report delves into the entrepreneurial challenges experienced by new ventures, especially those undertaken by new family businesses, and the sources of finance that are available for family startups including their advantages and disadvantages Entrepreneurial challenges The entrepreneurial challenges emanating from new ventures particularly in family business include funding, ambiguous legal frameworks, bureaucracy, and skill deficiency. Perhaps the largest challenge faced by new ventures in many new family businesses is funding, both in access and in amounts (Arabian Gazette, 2015). Financiers such as banks find family businesses as a high-risk undertaking, and therefore, they provide stricter loaning conditions to family businesses.
In addition, while it can be acknowledged that various business-financing vehicles have emerged recently, such as crowd-funding platforms, angel investment networks, venture capital funds and business accelerators, the financing they avail is often insufficient for the new ventures and thus require supplementation.
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