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MNE3701 Assignment 3 Semester 2 due 27 September 2024

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  • Essentials of Entrepreneurship and Small Business Management , Global Edition

MNE3701 Assignment 3 Semester 2 2024 - DUE 27 September 2024 ;100 % TRUSTED workings, Expert Solved, Explanations and Solutions. For assistance call or W.h.a.t.s.a.p.p us on ...(.+.2.5.4.7.7.9.5.4.0.1.3.2)........... Having acquired sufficient knowledge and skills on financial management for small...

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  • 10 de septiembre de 2024
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MNE3701
ASSIGNMENT 3 SEMESTER 2 2024
UNIQUE NO.
DUE DATE: 27 SEPTEMBER 2024

, MNE3701

Assignment 3 Semester 2 2024

Unique Number:

Due Date: 27 September 2024

Entrepreneurship and Small Business Management

Question 1: Financing a Small Business

When starting a small business, choosing the right financing options is crucial for its
success. Below, I will critically discuss the different ways I would finance a business and
provide practical examples while justifying my choices.

1. Personal Savings

One of the most common ways to finance a small business is through personal
savings. This is often a good option because it doesn't involve taking on debt or giving
up equity. For example, if I were to start a small bakery, I could use my personal
savings to buy initial equipment, ingredients, and rent a small storefront.

Why Choose Personal Savings?

 Control: Using personal savings allows me to retain full control over the
business without the need to repay loans or offer equity to investors.
 No interest: Unlike loans, personal savings come with no interest payments,
which reduces the financial pressure in the early stages of the business.

Limitations: However, this method can be risky if my personal savings are limited, as it
may not be enough to cover larger expenses like scaling operations or marketing
campaigns.

2. Bank Loans

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