|
Common barriers to entrepreneurship Entrepreneurship attracts many people each year. Yet, it faces a number of barriers that, if not approached properly, will prevent launch, much less long-term success. Financing is arguably one of the most critical aspects of entrepreneurship. Common barriers to entrepreneurship Entrepreneurship attracts many people each year. Yet, it faces a number of barriers that, if not approached properly, will prevent launch, much less long-term success. Financing is arguably one of the most critical aspects of entrepreneurship. While there are many options available, small business owners often find it hard to secure financing mainly because of the strict requirements set by traditional financial institutions, such as the fact that the business entity must be at least 2 years old. As a result, owners have no other choice but to look for alternatives to be able to meet their operational needs and grow their company. There are alternatives, and one of those alternatives is crowdfunding. What is crowdfunding? Crowdfunding is a financing option that allows you to raise funds through an online platform. The funds are provided by a diverse pool of people usually called backers or the "crowd". Because the Internet is accessible to almost anyone, contributions to the raise of your company’s capital will be made by people in a convenient way since they won’t need to go through the formal rules that are now in place. Think of it this way: a backer could be anyone you've known such as a former classmate that you've never liked, or never met such as a geek living in some remote part of the globe. Another thing to know about the "crowd" is that it mostly features men who are between their mid-20s and mid-30s. Benefits of crowdfunding The primary benefit of crowdfunding is that it’s not as restrictive as the other popular financing options such as commercial loans. It also provides more validation than traditional financing in the feasibility of your idea. The business model of your company is presented to all prospective backers who then have the option to embrace it or not. In addition, your company’s marketing campaign will receive a significant boost as the project will attract a global audience. Another feature that makes this financing option stand out above the others is the opportunity given to the "crowd" to provide feedback continuously. They can help you improve faster, and more passionately, than traditional financing. Hope this helps, friends! If you have a startup idea that needs funding, -follow Matt for more tips, -check out our video series offering advice for entrepreneurs, -or contact us today and we’ll help you with the future of your exciting new journey.  |
Handshakin Blog
|
RSS Feed
