Entrepreneurshıp (ENG) — Ünite 6 Soru-Cevap

These resources can be grouped into two groups: tangible and intangible resources.

Tangible Resources

According to our textbook, these are financial resources, team members, and an order from an important customer.

Many entrepreneurs rank fundraising as the number one challenge during their start-up process. 

"Conflicts of interest", during fundraising for a start-up,  is an issue of ethics.

Global Entrepreneurship Monitor (GEM) reports (2016) indicate that 95% of entrepreneurs globally utilize their personal funds while starting a business.

According to our textbook, the advantages of borrowing money from friends during the seed and start-up phase are:

- Fundraising is easier and faster
- Less problems occur when repayment cannot be
done
- Less expensive (no or low interest)
- No or fewer demand for equity

Bootstrap financing is starting a business with very limited internal resources and no external funding

Our textbook lists the advantages as follows:

Easily obtainable
Convenient
Minimal requirements
No need for business plan
No need for collateral
Strain on financials can be decreased
Sole control on actions
Less time to spend to attract capital
Utilizing connections instead of money

Any list of three of these advantages will be correct response to the question.

Incubators are defined as support environments for start-ups.

Incubators that are generally supported by national or regional governments and mostly associated with universities are called Not-for-profit incubators.

Accelerators are defined as cohort-based programs with limited time frames (in average 3 months) in which entrepreneurs are provided with seed capital and efficient and intense networking, training and mentoring services and a demo-day (pitch to investors) at the end of the program.

Crowdfunding is defined as a funding source for entrepreneurs where a large number of people invest
small amounts of money in a company or a project via an online platform.

Venture capital funding is a form of equity finance and it is described as investment of institutional investors to companies with high growth potential in exchange for equity.

The main duty of a venture capital company is to select and grow the right start-up. 

Venture capitalists do not invest all of their money at once to a start-up due to uncertainty issues,

Some advantages of debt financing from commercial banks is summarized as:

• Entrepreneurs keep the equities
• Entrepreneurs receive the profits solely
• Independency for decisions

Debt finance is basically taking loans from lenders such as commercial banks, credit unions, leasing
companies or family members.

An overdraft account is an account that is flexible and convenient to borrow money to use as working capital and overcome cash flow difficulties.

Choices of the entrepreneurs for external funding are highly effected by the availability and maturity of the funding options in a country and its entrepreneurial eco-system.