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Reflection on Entrepreneurship

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Question :


You will complete an online activity and then write a reflection paper on what you have learned.

In this activity, you will examine finance sources and choose where to get the capital needed to launch a product idea through multiple phases of business growth. Click the link below to access the activity.

After completing the activity, click the button to download the PDF file and attach it to this assignment.

Write a reflection in which you address the following:

What did you learn about entrepreneurship during this activity?

Provide a detailed real-world example of a situation in which you could apply these concepts.


Answer :


Reflection on Entrepreneurship

Throughout the course, I have learned a lot about the concept of entrepreneurship and with every activity, I am learning something new about this concept. So far I have learned that entrepreneurship is one of the riskiest jobs and in order to be an effective and successful entrepreneur, it is important to have entrepreneurial skills and competencies (Nambisan, 2017). From this activity, I learned how an entrepreneur can generate funds for the business. There are different sources of generating money or funds for the business through which an entrepreneur can generate money for the business. With the help of this activity, I learned that finance is the lifeblood of the business and hence without funds, it is impossible to carry the business functions. It is very important to have enough funds to run the business smoothly. Having enough funds also help the entrepreneur to conduct business effectively and efficiently. 

From the activity, I learned that an entrepreneur can generate money from a different source such as angel investors, venture capital, corporate bonds, bank loan, etc. Apart from this, an entrepreneur can also use his/her personal savings to invest in the business. An entrepreneur can also seek money from friends and family members for the business. But the key sources of generating funds for the business are the investors, venture capital, corporate bonds, and bank loan. For an entrepreneur, it is easy to find ways of generating money for the business but it is hard to convince them to invest in the business (Hisrich and Ramadani, 2017). However, if an entrepreneur is capable of convincing the investors to invest in the business, it is not enough to go with any of the options available to the business. It would be very risky for the business. Therefore, it is important for the entrepreneur to analyze the advantages as well as disadvantages of each option available to the business to generate funds. After analyzing the advantages and disadvantages of the options, the entrepreneur should compare every option with each other in order to select the best suitable option for the business. For example, if an entrepreneur has two options to finance the business such as equity and debt financing. Equity financing is a method of generating funds for the business by selling the stock of the company to the investors whereas debt financing is a method of raising funds by selling bills, bonds, or notes to an individual or institutional investors (Koo, 2017). Thus, the organization should analyze both methods and compare them with each other to identify which one will be beneficial for the business and then select the best one. 


Real-world example

There are several companies that have raised funds for various purposes and Toyota is one of them. There was a safety issue with the vehicles of Toyota and due to that, the company called back millions of cars. In order to rectify the issue, the organization was in need of huge money. Thus, the organization went for raising funds for the same. It sold bonds and bills to generate money from investors. Thus, in such cases, the above-discussed concepts can be used.


Hisrich, R. D., & Ramadani, V. (2017). Raising Capital for the Entrepreneurial Path. In Effective Entrepreneurial Management (pp. 115-134). Springer, Cham.

Koo, J. (2017). Method of raising capital via a business entity with a contract to generate revenue for the entity. U.S. Patent Application 15/149,254.

Nambisan, S. (2017). Digital entrepreneurship: Toward a digital technology perspective of entrepreneurship. Entrepreneurship Theory and Practice, 41(6), 1029-1055.


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