Essays on Raising Capital in Entrepreneurship Literature review

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The paper "Raising Capital in Entrepreneurship" is an outstanding example of a business literature review. Entrepreneurship requires funds to be successful. However, there must be an additional effort by the entrepreneur, for instance, taking risks and coming up with newer ideas in order to make it successful. Many scholars have explored capital raising in a bid to trying to understand how entrepreneurs work hard in raising funds. They have strived to show the desired criterion of getting extra funds to run the businesses or expanding them. Some entrepreneurs borrow funds from friends and family while others visit their nearest banks to obtain long-term or short-term loans.

Finally, they all intend to see through successful entrepreneurship (Bessant and Tidd, 2007). To understand the raising of capital by entrepreneurs, the published literature is therefore reviewed and then analyzed in-depth. Appropriateness of research methods According to the JOBS (Jumpstart Our Business Startups) Act of 2012, many businesses fail because of inadequate capital. It goes ahead to give the problems that are facing small businesses and entrepreneurs regarding finances and revenue (Weerawardena et al. , 2010).

Many times they find themselves at crossroads due to inappropriate capital formation strategies. The approach in which JOBS (2012) talks about raising capital is that of viewing it in perspectives of the problems that face entrepreneurs when they are in the process of locating targets for their capital. It goes ahead to expound on such problems one being the lack of information on how to go about it. On the other hand, Vesper (1982) and Baumol (1993) view raising funds as the next step after coming up with a business idea (Miller and Garnsey, 2000). In this case, there is some difference in research methods that each of the above articles has employed so as to reach such appealing conclusions.

In Vesper (1982) and Baumol (1983), there was a broad range of data extracted from entrepreneurs from different social classes hence giving an overview of how they worked out with capital raising especially for startup businesses (Herbig et al. , 1994).


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