How Entrepreneurial Resources Can Affect Scarcity
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How Can Entrepreneurial Resources Affect Scarcity
For this, it is critical that I first define what the word "scarcity" is.
Scarcity means "shortage" and is defined as "the state in which something is needed more than it is available" (Evelyn J. Good, ABC's Thinking Games: Games for Conscious Living).
When an item, service or service-type is scarce, then it will cost more to obtain than it would if it were abundant.
Let's look at this in the business context, first.
Acquisition of capital: The "limited available capital for entrepreneurship"
Business owners know that one of their primary responsibilities is the acquisition of capital to expand and to acquire new assets.
Often, a business owner or manager has taken this responsibility on themselves since no one else is going to do it for them. To acquire capital for your business, you need money.
This is not a matter of if you will need money, but what form of capital will you need.
There are two forms of capital that you can receive: loans and equity investments. Let's consider the costs of each form of capital in the context of your startup.
The cost of debt financing in relation to debt owed
In order to obtain debt financing, you first need to meet with an investor, who may be an investor in a related company.
This is a complex process that you should understand up front and take into consideration when making your decision.
The goal of an investor is to make a return on his or her investment. An investor has different motivations, ranging from philanthropic to profit-oriented. At the end of the day, the goal is to make money.
This is why some investors choose to invest in a business that is already in operation while others choose to make an equity investment in an entrepreneur.
When considering whether to accept an investor's loan or equity investment, it is important to remember that capital is not unlimited.
Once you have received a loan or equity investment, you must pay back the loan or investment before you can do anything else.
Typically, you need to pay back the principal amount that you received, plus interest, and there is also a provision for you to have some extra capital available that you can use in case of an unexpected event.
What are the common problems of small business owners?
Not being able to get the right help when they need it. The personal aspect of running a small business is very taxing, as it involves an extensive amount of people at your disposal.
As you get overwhelmed with tasks, you don't have time to focus on the bigger picture.
Lack of time
Lack of time is one of the main problems small business owners face, as they struggle to get the right kind of help to run their businesses. When you are running a small business, you tend to want the results now.
Too many things to think about. In the hustle and bustle of running a business you may not always see the bigger picture. Entrepreneurs have a lot of stress, anxiety and emotions that can affect the way they operate their businesses.
The truth of the matter is that it takes a lot of time and resources to get things done right. A small business needs constant focus from the person running it and even more time to implement the right strategies and processes.
They forget the right thing at the wrong time. This is very important because your focus should be on your goal.
You are not supposed to be distracted by things that will not help you achieve the goal.
To overcome these challenges and get the right solutions, you need to know what you are doing and what you are getting out of it. One of the things that will help you get the right answers to your challenges is to research online.
If you want to get the right information about a product or solution you need, you need to find out where it is available online. You can use one of the search engines and type in the keywords you are looking for.
The search engine will then bring up a plethora of websites that have the right kind of information.
Reach out to the right people
As we said earlier, it is important to go with a solution that you can afford. The people you are dealing with should also be people you can relate with and who can help you succeed in the business you are running.
This is not always easy but very important to do.
Many business owners have not thought about who they are going to use for all their services.
For many entrepreneurs, they just keep hiring the same people time and time again. They do not know the reason why they keep doing that but something just does not feel right.
There are a lot of reasons why people tend to keep hiring the same people over and over again.
Maybe they see them as an authority on the subject and they want to get the right information, so they hire them.
Maybe they are friends or relatives and are unable to look at them in a different way.
They might not know the right kind of people to go with for their businesses. There are people out there who will offer you the answers you need and treat you with respect.
That is why it is important to get the right help as much as possible.