September 20th-24th
Dear students, for this weekly forum we will discuss about: funding
You must answer one or both questions with a response of at least 200 words and using at least one reference in APA style.
A) Explain what are the advantages of working with an incubator or business accelerator. Why entrepreneurs do not know about this option?
B) Why do you think most entrepreneurs can´t access to funding? Present an example of one.
Remember that our deadline is Friday, september 24th before 11:59 pm. :)
PUT YOUR NAME AND LAST NAME INSIDE YOUR ANSWER.
Best regards!
ELINA FLORES
ResponderBorrar3B
B) Why do you think most entrepreneurs can´t access to funding? Present an example of one
Entrepreneurs bring innovation through the creation of goods and services; they set up a business with those goods or services and that is called entrepreneurship. Successful entrepreneurs earn profit and growth opportunities; on the other hand, when they don't succeed in expanding their idea, entrepreneurs lose money and their business fails. In order to grow their business, they are going to need financial support, funding.
When looking for financial resources, entrepreneurs must have a clear and strong business idea or an already profitable business which has been tested in the market. There are many sources to get money from like family, friends, followers, government, bank loans, investors and international associations; however, in order to successfully get the money, it is important to know how to justify the need for it. A lot of entrepreneurs lose the opportunity to gain money from investors because they don’t inspire confidence by not knowing what they are going to use the money for, when investors would see the return of the investment, the outcome if they receive the money, etc. For example, during a Shark Tank pitch the entrepreneur told the investors she got one million dollars from other investors but that from that money she only had 50 thousand left. The entrepreneur got the money from the other investors without knowing if her product was going to sell and then went to other investors to get more money. When you have your idea, you need to study the market and make sure your business will be profitable.
In conclusion, in order to access funding you need to test your product with the market to ensure the business is profitable, you also need to know about your numbers, how you would use the money and when could your investors expect their investment returned.
References:
Hayes, A. (2021). Entrepreneur & Entrepreneurship. Investopedia. Retrieved from: https://www.investopedia.com/terms/e/entrepreneur.asp
ABC. (2020). Youtube. The Sharks Want to Know Where KidsLuv's Money Went - Shark Tank. Retrieved from: https://www.youtube.com/watch?v=H7DHcd_XPbw&ab_channel=SonyPicturesTelevision
jose antonio torre
ResponderBorrarWhy do you think most entrepreneurs can´t access to funding? Present an example of one.
The startup game is a risky business, and for many entrepreneurs navigating the competitive landscape and securing the funding needed to survive is a significant hurdle that isn’t easily overcome.
The truth is, there is a limited amount of funding available to startup founders and innumerable new ventures born every day that will be competing for it. Investors simply can’t open their wallets for every good idea that walks through their door. (Frankly, those are a dime a dozen.) The ones that do secure funding, are the ones that have demonstrated how that good idea will actually come to fruition.
thers three most common mistakes your peers have probably already made when looking for investment and how you can be prepared to avoid the same fate as so many founders before you:
Not understanding your financial situation.
Underutilizing the management team.
Lacking a clear go-to market strategy.
for example:
Experienced investors know there are few legitimate overnight successes and that realistically they will be lucky to see a return on their investment in the next decade.
https://www.entrepreneur.com/article/234604
BorrarPablo Leon
ResponderBorrarThere are a lot of different opinions about why is good or what are the advantages of working with an incubator or a business accelerator, I’ve been doing some research and I found a web site where it says there are four major benefits of working whit a startup incubator, to begin with the incubator saves you time you usually spend doing mundane tasks and help you focus on what’s really important such as developing the product. In essence, incubators are home to angel investors, venture capitalist, and others who are able to mentor entrepreneurs. The second major benefit is the fact that being part of an incubator is the ability to tap into a strong network of business partners. The third major benefit being part of the incubator, you can relay in the fact that there are partners that can help you, for example if you are a tech company and in the incubator is a business about public relations you can build a partnership where you help them, and they help you. The fourth and last major benefit of this web site is the fact that you can have the support from mentors with more experience and more relations than you, the mentors have been entrepreneurs themselves and, as such, have been able to challenge and help further define the vision, strategy and roadmap of the business, of course, there will still be times when, despite the incubator, you will have to learn on your own.
Sadly there is little information of how much good the incubators can do to the startups and because of that not much people use their benefits, but in the future the incubators will start to create a reputation and the entrepreneurs will begin to believe in them.
Cole, S. (2014, March 13). 4 Major Benefits Of Startup Incubators. Fast Company.
https://www.fastcompany.com/3027636/4-major-benefits-of-startup-incubators
Alexa Villarreal
ResponderBorrarA) Explain what are the advantages of working with an incubator or business accelerator. Why entrepreneurs do not know about this option?
B) Why do you think most entrepreneurs can´t access to funding? Present an example of one.
In my opinion working with an incubator “Business acelerator” is good, and helpful.
Your get to work faster, some times you don’t even need to do those unnecessary task and rather do more important ones like speaking for investors, among others.
But accelerators may be funded by bigger companies, with more experience and you need to be careful they don’t try to take your business away from you.
Most starting companies don’t know about this offer because nobody has tald them, incubators are like investments, you don’t want to invest in a business you know is not going to work.
Most entrepreneurs can’t acces to funding because of the same reason, nobody wants to invest in a company that is not going to work, this is one of the resons people find investments outside the bank, of course they are more risky but may bring a lot more money at the end of the year.
Apple is a company that would not exist today if it wasn’t thanks to all the funding a resources they gave to Steve Jobs.
Quirky is a company that failed because the lack of funding.
https://www.google.com/search?q=startups+that+failed&rlz=1C5CHFA_enMX917MX917&sxsrf=AOaemvLNdoBPJHKof1q3ug3dVhjZsWjSow%3A1632415437622&ei=za5MYaCgJaSMwbkPk_6lCA&oq=business+who+couldent+get+funding&gs_lcp=Cgdnd3Mtd2l6EAEYAzIHCAAQRxCwAzIHCAAQRxCwAzIHCAAQRxCwAzIHCAAQRxCwAzIHCAAQRxCwAzIHCAAQRxCwAzIHCAAQRxCwAzIHCAAQRxCwA0oECEEYAFAAWABg1TVoAXABeACAAQCIAQCSAQCYAQDIAQjAAQE&sclient=gws-wiz
https://tms-outsource.com/blog/posts/failed-startups/
Chárbel González Group E
ResponderBorrarAs we know there are several incubators, business accelerators or start ups whose purpose is to provide a guidance for all those emerging projects which need an impulse to overcome the first steps. Choosing an incubator for your startup business is a big decision, especially if you’ll be giving up a hefty chunk of time and equity for its resources and expertise. Many incubators require rigorous training and have strict schedules. Assess the curriculum to make sure it teaches what you need to learn in order for your business to succeed. Make sure you can take it all on while still running daily operations. Any incubators require a time commitment of around one to two years, plus adherence to the schedule set by the incubator, which can include many trainings and workshops. Yes, you will learn a lot, but you’ll also spend a fair amount of time doing it. Entrepreneurs don’t know about this because of the lack of information and high rate of poverty, this is related with the low level of studying or academic standards in the society. Unfortunately not everyone although they want they enter to a funding, an example of this can be when some entrepreneur assist to shark tank and the sharks refuse to offer some proposal to them, usually this is because of the lack of potential the project has, that’s why they suggest to change the project or how they are using marketing strategy.
John Vander L. (2020) https://aofund.org/resource/business-incubators-pros-and-cons/
Alejandro Vidal
ResponderBorrar3B
B) Why do you think most entrepreneurs can´t access to funding? Present an example of one
I think that most entrepreneurs that are not getting access to funding are not getting this access because of three major reasons. The firs one would be because they do not understand their financial situation. Experienced investors know there are few legitimate overnight successes and that realistically they will be lucky to see a return on their investment in the next decade. Then, also a pretty big and pretty common mistake would be underutilizing the management team. Great leaders aren’t successful solely on their own. They surround themselves with people that add value to their business, and you need to do the same. Investors need to feel confident that your team is the right one to take your company from a small, great idea and turn it into a high-yielding investment for them. The goal here is to convince an investor that your team is prepared to face all the challenges and criticisms that come with running a business. You can’t do that if you haven’t fully vetted your management team. And last but definitely not least, lacking a clear go-to market strategy. Entrepreneurs just starting out often make the mistake of not understanding where their idea fits in the current marketplace. (If you aren’t targeting the right market the chances of a successful exit will be small.) I know that starting a new business ore getting a business to grow can be really hard, and very expensive, this is why a lot of entrepreneurs need funding, so if you want to get funding it is absolutely vital that you do your work properly and prepare yourself enough, you can follow this three steps and e ready for some funding.
Jackson, P. (2014, 10 junio). 3 Reasons Entrepreneurs Fail to Secure Funding. Entrepreneur. https://www.entrepreneur.com/article/234604
Este comentario ha sido eliminado por el autor.
ResponderBorrarAlejandrina Sarzo Wabi
ResponderBorrar3:B
23/09/2021
Answering question #2, I think that many reasons why entrepreneurs cant access to funding is because there are many obstacles like: they are not skilled enough, they have bad ideas, they dont have money and need it to make, they are not expert salesperson, the lack of information in the financial situation, retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives. A business owner is aware of how much money is needed to keep operations running on a day-to-day basis, including: paying fixed and varied overhead expenses, such as rent and utilities; and to ensure that outside vendors are paid on time, they need to have knowledge about it, to be able to work hard at it and get prepared, an example of a business that could access to funding: Erika’s career prior, founding Good Zebra was a successful trajectory of launching brands, reinventing businesses, entering foreign markets, and developing relationships with consumers. Good Zebra would also have had national distribution, market opportunity, and consumer demand. Despite all of this benefits , Erika couldn’t land what it would take to grow Good Zebra, Erika was a business woman that faced a lack of funding.
B.E.S.C.S. (2019, 8, March). Women-owned businesses face a lack of funding — and here’s how to change this. MarketWatch. https://www.google.com.mx/amp/s/www.marketwatch.com/amp/story/women-owned-businesses-face-a-lack-of-funding-and-heres-how-to-change-this-2019-03-08
To understand what are the advantages of an incubator or business accelerator, first we have to define those two. A business accelerator is an organization that offers support like mentorship, office space, resources, as well as funding for startups who are starting a business all included in a months-long program designed by the organization. An incubator is basically the same as a business accelerator but the difference is the time the stay with the startup, incubators can be with the startups for months even years until the new business grow.
ResponderBorrarWhat are the advantages of working with a business accelerator?
There are many advantages of working with a business accelerator when you are a startup. Probably the most important is access to investors, the reason why many startups fail after three years or less is because of the money, when working with a business accelerator they have a directory with a lot of investors who would like to invest in a new company. Another advantage is the mentorship, when starting a business, having someone having your back and helping you is always a big help, someone who’s been in your place. To better describe this advantage there is a phrase by John C. Bogle “Learn every day, but especially from the experience of others. It’s cheaper.” When starting a business handle everything as a single person is time consuming and probably there are some parts of the business which you are not good at, if you think hiring a team is an option first you have to look at numbers, how much is going to cost you have your own team, but all of that can be solved with a business accelerator who provides you with a team of specialist and it would cost you a tenth of what would be if you hire them. Another advantage is networking, meeting new people who are in the same path as you or that were in the same path but now they are successful is always beneficial, even though I already mentorship, this is different because is not coming from someone inside the business accelerator but instead is an external with a different perspective and different ideas. Finally the last advantage of working with a business accelerator is risk management, as a startup or even when you are a big businessman you face problems almost everyday, having a business accelerator by your side to help you get through those problems is always better than try to do it alone and with no experience.
Why entrepreneurs don’t know about this option? Well probably they do, businesses like Uber, Airbnb, SpaceX, among other started in a business accelerator program, but the problem is that some entrepreneurs want to do it themselves, learn from themselves or the don’t like the idea of giving half the company to a business accelerator.
Sebastián García
References:
Small Business Trends LLC. (2020, January 22). What is a Business Accelerator - And How Does it Differ from an Incubator? Small Business Trends. https://smallbiztrends.com/2016/08/business-accelerator-differ-incubator.html
Jagannathan, B. (2021, September 16). advantages of working with a business accelerator. Evolve Business Advisory. https://evolvebusinessadvisory.com/advantages-of-working-with-a-business-accelerator/
Karen Romero Ulloa
ResponderBorrarA) Explain what are the advantages of working with an incubator or business accelerator. Why do entrepreneurs not know about this option?
Joining an incubator or business accelerator opens you to opportunities such as better exposure and access to experience and knowledge. These experienced business entrepreneurs in the incubator can help with everything. For example the early-stage companies have helped to refine their ideas, create their business plans, work on products to market fit, identify potential intellectual property issues, and network with other start-ups. Networking is equally important for the short term as well as for long-term growth, being part of an incubator gives you access to networking opportunities. This allows you to exchange information and build relationships with other professionals, leaders, and startup entrepreneurs within your industry. Networking alone for the first time can be difficult. Finding a strong network is not an easy task, but it is important to help build your network, gain your contacts, referrals, opportunities, and exposure. Finding things such as investors or one on one time venture capitalists, and others who can mentor you is a difficult task, some even find it impossible. Incubators help connect you with mentors and learning from experienced leaders helps you in avoiding some common mistakes which startups can make.
Usually people who are starting to build a business think they need a tradicional bank loan to get started. Incubators are a more modern way of helping a business start, and people don't like taking a chance on new when they aren't standing steady with their business yet.
Major Benefits Of Startup Incubators | OpenGrowth. (2021). OpenGrowth. https://www.opengrowth.com/article/major-benefits-of-startup-incubators
Daniel Jaime Vidal
ResponderBorrar3*E
The first thing to realize about startup incubators is that they offer all kinds of help to entrepreneurs, from shoring up a workspace to helping people obtain equipment. An incubator would ideally see to it that an entrepreneur gets set up properly right out of the gate. There are many advantages of working with this type of people but the most important are the Increase of chances to get the success of your company thanks to strategic support. This includes practical assistance in accounting and financial, legal, advertising and marketing, commercialization, human resources, export, among others. You will have better access to venture capital, consulting to apply for funds and other financing resources. and incubators offer an office where entrepreneurs can carry out their activities in a coworking environment with access to meeting rooms.
The problem with all this is that the people don’t really trust in this type of help because many of them think that the information that this incubators provide is just theory but at practice many times it doesn’t work, most of the entrepreneurs need practical help and trusted results not just people talking about what should them do. And yes, the entrepreneurs know about this help but there is just so many lack of trust, most of the times the entrepreneurs are able to afford this help but for most of them is just useless.
Links: https://pqs.pe/emprendimiento/cuatro-beneficios-de-acudir-una-incubadora-de-negocios/
https://venturexfranchise.com/blog/five-key-things-to-consider-when-investing-in-a-startup-incubator/?campaignid=724210754&adgroupid=129816662767&keyword=&gclid=EAIaIQobChMIwtnO9ZeY8wIVkuDICh2CPAbxEAAYASAAEgKXu_D_BwE
Santiago vecoña
ResponderBorrarAccess to financing, networks of contacts or mentors and the lack of preparation and knowledge are the main obstacles that entrepreneurs of the Pacific Alliance face when creating their business.
This was determined by the study 'The Entrepreneurship Gaps in the AP' carried out by the Icesi University, Universidad del Pacífico, the Pontificia Universidad Católica de Chile and the Tecnológico de Monterrey in collaboration with the Latin American Entrepreneurs Association (Asela) and the Association of Entrepreneurs from Colombia, Mexico, Chile and Peru
Regina González Maldonado
ResponderBorrarA) Explain what are the advantages of working with an incubator or business accelerator. Why entrepreneurs do not know about this option?
To this day, practically every day a new business is created, and many do not have the financial resources to reach their goals, success and stability.
That's why a Business incubator can help drive these businesses and help them reach their highest potential.
A business incubator helps you, since they already have experience and knowledge, they guide you to make the best decisions, giving you directions and a little funding to start correctly.
They provide numerous benefits to owners of startup businesses. Their office and manufacturing space is offered at below-market rates, and their staff supplies advice and much needed expertise in developing business and marketing plans as well.
These resources allow companies and ideas to take shape while operating at a lower cost during the early stages of business incubation.
Business incubators have been around since the 1950s. Since then, they have evolved into many forms. While there are several types of incubators, they all share the common goal of promoting growth.
Business incubation programs are often sponsored by private companies or municipal entities and public institutions, such as colleges and universities.
Some entrepreneurs don't know this option because The application process can be rigorous and competitive.
Joining an incubator is almost like joining a college program: You have to apply, be accepted, and then follow a schedule in order to meet benchmarks set by the incubator. You’ll also need to commit to a length of time to be a part of the incubator, typically one to two years.
References:
"12 Reasons You Should Join an Accelerator to Advance Your Startup" By Serenity Gibbons February 20, 2018 Retrieved from:
https://www.entrepreneur.com/article/308764
"Business Incubator" Retrieved from:
https://www.entrepreneur.com/encyclopedia/business-incubator
"What Is A Business Incubator And How Does It Work?" By Draper University May 22, 2020 Retrieved from:
https://www.draperuniversity.com/blog/what-is-a-business-incubator
"Business Incubators: Pros and Cons" Retrieved from: https://aofund.org/resource/business-incubators-pros-and-cons/
Daniela Cabañas 3ºB
ResponderBorrarThe purpose of a business accelerator or accelerator programs is to grow young companies by nourishing them with the support, connections, and knowledge they need to be successful.
In an accelerator the experts work together with the leaders so that once the weak spots are identified they’ll be able to strengthen them. By establishing a clear schedule of classes and milestones, the program helps entrepreneurs stay focused and reinforces the need to be agile and move fast. Also, the accelerator helps develop your marketing strategy and identify the right positioning for your products. They have a huge network of social and professional circles that you could meet, if you collaborate with them.
Why entrepreneurs do not know about this option? because sometimes they ask for a lot of information and there are not so many and therefore their availability does not cover the demand. These accelerators also do not use mechanisms to identify and make themselves known to businesses that require their support.
Business accelerator; the tool you don’t know you need. (s. f.). Recuperado 25 de septiembre de 2021, de https://t-hub.mx/en/blog/129/business-accelerator-the-tool-you-dont-know-you-need
Dyna Rosado 3ºE
ResponderBorrarA) Explain what are the advantages of working with an incubator or business accelerator. Why entrepreneurs do not know about this option?
They can provide financial support for the development of the business.One of the main benefits of business incubators is that they can advise on the type of entities to turn to to request financing with a greater guarantee of success or, in some cases, provide financing for them. They provide logistical and management support, They provide personalized treatment to adapt to the needs of each of the projects they promote. It also helps to optimize resources, minimize risks, help new projects to minimize risks, with the contribution of its specialized knowledge.
Entrepreneurs may have some idea of these incubators but maybe they are not willing to invest since they do not trust. in another case, they do not know of its existence since it is not something so normalized or used.
Argudo, C. (2017, November 30). Ventajas e inconvenientes de las incubadoras de empresas. Emprende Pyme. https://www.emprendepyme.net/ventajas-e-inconvenientes-de-las-incubadoras-de-empresas.html
Gabriel Aguayo Díaz
ResponderBorrar3:E
First off all, when someone is starting their first business is more than natural that many questions like how to do things, when to do them, who is it better to work with and many others may rise. That is why many people decide to work with incubators, which itself is a company, but one that focuses on helping new businesses or startups with several services. Some of this services include training, advising, access to capital resources like loans, assistance with business operations like accounting, access to office space and things like computers, etc. Shamefully, most businesses don’t know or deliberately ignore this help, in some cases in which is a private company for startups they ignore them because of the lack of money to pay them, but in other cases in which the service is government paid they simply never heard of them.
Talking about the lack of money, that’s one of the biggest problems people face when starting a business. Most of the times they look for funding, loans, etc., but each time it is harder and harder to get someone to help small businesses. The main problem is that small banks (which are the ones that give the most loans and funding for startups), are slowly but steadily disappearing, being a absorbed or outcompetes by bigger ones. And those bigger banks usually don’t like taking risks on small startups or simply have more strict standards for giving funding, and new businesses can’t reach those standards in such an early stage.
- References
Corporate Finance Institute. (2020, 15 mayo). Business Incubator. https://corporatefinanceinstitute.com/resources/knowledge/other/business-incubator/
- Staff, C. (2019, 12 julio). Entrepreneurs Say Financing Is Biggest Challenge. Https://Www.Uschamber.Com/Co. https://www.uschamber.com/co/run/business-financing/business-financing-challenges