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In the early stages of beginning a new business entrepreneurs frequently appeal for financing to

In the early stages of beginning a new business entrepreneurs frequ...

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In the early stages of beginning a new business entrepreneurs frequently appeal for financing to

In the early stages of beginning a new business entrepreneurs frequently appeal for financing to

Answer

To help establish and grow the business before there is sufficient revenue coming in for the company to sustain itself.
New business are often strapped for cash.
In order to survive and grow, they need to buy equipment/supplies, hire people, or pay other expenses just to get the business off the ground.
How can they do that if they barely have any customers?
The by appealing for outside financing.
A helpful side effect is that the people usually looking to fund new businesses (angel investors and venture capital funds) usually have a deep network and lots of expertise to help new businesses succeed.
This way, everyone wins (if the business pans out).

Virtual Teaching Assistant: Colleen R.
Question Level: Basic
Karma: Free
Upload Date: 5/31/2017

This 30 words question was answered by Colleen R. on StudySoup on 5/31/2017. The question contains content related to Business Since its upload, it has received 84 views.

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