Evaluate bootstrapping as a method of generating funds for small businesses.
Your business requires an investment of $200,000 in new machinery. A number of equity providers and banks have requested funding. To date, neither of these sources has agreed to supply the much needed financing that is required for the new investment. The CEO considers that the only alternative is to generate this money from internally generated sources; in other words, bootstrapping. As a valued employee, you are tasked with submitting suggestions to the CEO on how this funding can be generated.
In this assignment, you will analyze the importance of finance as a key resource for innovative small firms, and you will evaluate bootstrapping as a method of generating funds for these innovative small businesses.
To prepare for this Assignment:
- Read the Key Learning Document(see attached).
- Reflect on the importance of finance as a key resource for innovative small firms.
To complete this Assignment:
In an approximately 500-word response, address the following issues/questions:
- Analyze the importance of finance as a key resource for innovative small firms.
- Evaluate bootstrapping as a method of generating funds for small businesses.
- In formulating your assignment, consider the following issues:
o The types of bootstrapping methods you could suggest.
o The implications for the business of using them.
o The likely outcomes of using the methods you propose.