SOWPub Small Business Forums  
 

Click Here to see the latest posts!

Ask any questions related to business / entrepreneurship / money-making / life
or share your success stories (and educational "failures")...

Sign up for the Hidden Business Ideas Letter Free edition, and receive a free report straight to your inbox: "Ordinary housewife makes $500,000+ a year in her spare time, using a simple idea, and her driveway!"

NO BLATANT ADS PLEASE
Also, please no insults or personal attacks.
Feel free to link to your web site though at the end of your posts.

Stay up to date! Get email notifications or
get "new thread" feeds here

 

Go Back   SOWPub Small Business Forums > Main Category > Original SOWPub Forum Archive
Register FAQ Members List Calendar Search Today's Posts Mark Forums Read

View Poll Results: jUD1W
ymixIDftLagUwMovcmG 0 0%
NWgKFDhfTQiiG 0 0%
Voters: 0. This poll is closed

 
 
Thread Tools Search this Thread Display Modes
Prev Previous Post   Next Post Next
  #11  
Old September 23, 2003, 12:24 AM
Thomas Rice
 
Posts: n/a
Default Venture Capitalists and Entrepreneurs

Hi Azlee,

1) I don't think entrepreneurs are created through the educational system. You will have entrepreneurs in most educational systems. I don't think people become entrepreneurs due to economic pressure, either.

Economic pressure may play a role, but I'd say it cuts both ways. Someone who is under a lot of economic pressure may feel more inclined to pursue higher-achieving results, which may lead to entrepreneurship. At the same time, someone from a wealthy background who is under no economic pressure may have more leeway to try new ideas and thus that may be an influence on the decision to become an entrepreneur.

2) Venture capitalists help raise financing. At a basic level, entrepreneurs create businesses, and businesses often cost money to run. Early stage businesses sometimes will temporarily lose money as it develops a market, and growing a business can be costly.

If you are setting up a retail chain, for example, you may start with one store and it may be profitable. If you want to expand to another five stores, you may think they will all be profitable but there may be an upfront cost you cannot afford to pay for.

In this situation you would need financing. Financing basically comes in two types -- debt and equity.

Debt is where you borrow money and repay it later, such as a bank loan. Equity is where you sell part of your company to somebody else.

Venture capitalists basically invest in early stage companies, but they typically invest larger amounts after a company has started to go.

If financing is required, most entrepreneurs raise money from their own savings, friends, and family. They may also raise money from "angel investors", being wealth individuals who invest relatively small amounts in start-up and growing businesses.

I'm not sure of the exact figure, because I'm not that experienced with the venture capital world, but I imagine venture capitalists invest at around the $5 million plus mark.

After venture capitalists the next source of funding is usually an initial public offering (IPO), if your company is large enough, which is where you list on a stock exchange and raise capital from public shareholders.

Hope this helps!

- Thomas.




http://www.thomasrice.com/
 


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are Off
[IMG] code is On
HTML code is On
Forum Jump

Other recent posts on the forum...

We've discussed EVENT marketing, here is an interesting one.
Why people hate selling (salesman) ... and an EFFECTIVE alternative to it, IS...
ADD or ADHD?? Here is one technique. A.I. I. P.
11 year old post. Good time to think about it.
Excrement! So said Herschell Gordon Lewis to us a few years back.

Seeds of Wisdom Publishing (front page) | Seeds of Wisdom Business forum | Seeds of Wisdom Original Business Forum (Archive) | Hidden Unusual Business Ideas Newsletter | The Great Ideas Letter on CD | Hotsheet Profits | The Art of Leverage | The Success Report | Persuade via Remote Influence | Writer's Friend (software) | Affia Band | The Entrepreneur's Hotsheet | The SeedZine (Entrepreneurial Ezine) | The Fly Low Collect Dough Update Hotline

Get the report on Harvey Brody's Answers to a Question-Oriented-Person


All times are GMT -4. The time now is 06:18 PM.


Powered by vBulletin Version 3.6.0
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.