Free Argumentative Essay About Alternative Sources Of Finance Available To Entrepreneurial Firm For Women

Published: 2021-06-21 23:37:51
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Category: Finance, Women, Debt, Banking, Money, Company, Credit, Venture Capital

Type of paper: Essay

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The women entrepreneurs have access to several forms of finance. The entrepreneurial firm therefore have access to several sources of finance both external and internal. These sources of finance enables the women to run their businesses easily through easy accessibility to credit services. Most of the external financing is often not accessible to small and private enterprises like these ones. The women therefore look for finances in other institutions which are not profit oriented like banks (Vliamos, 2010:18). This firm may also get finances from personal assets and other informal sources like friends and family.
Venture capital funds are also another alternative of finance to the firms run by women in the Middle East. The venture capitalists offer funds to women who have the best projects and the profits from their business are shared between the firm and the venture capitalists.
In the context of supply-side factors, debt financing also another source of fund towards financing this women enterprise. This kind of finance is however not very accessible due to lack of necessary collaterals and security. Credit bureaus are also very important in providing accessibility of credit facilities to the women entrepreneurs. This bureaus ensures that the credit worthiness of each firm is assessed so as to void the scenario where all small private firms are denied access to credit facilities by the lending institutions (Robson, 2009:16).
This firm also access finances through an interaction of domestic authorities and the financial institutions. The women access to funds is therefore improved thereby enabling this firm to get capital to run its daily operations and transactions.
The firm also gets credit facilities through credit guarantees in order to laces debt finance. The debt finance with the help of credit guarantees is accessible to firms run by women in this region. This debt financing will therefore boost the financial accessibility.
Microfinances is also an alternative source of funds to this firm. The microfinance institutions helps firms like this one which are owned and run by women in order to avoid the bottlenecks in accessibility to credit facilities( Aidis, 2010:12).
Islamic financing is also another form of financing which enable the women in firms like this to run their businesses successfully without much hassles. The principles behind Islamic banking enable the women to access fund without interest rates.
Aidis, R., Estrin, S., & Mickiewicz, T. M. (2010). Size matters: entrepreneurial entry and government. Small Business Economics. doi:10.1007/s11187-010-9299-y
Robson, P. J., Haugh, H. M., & Obeng, B. A. (2009). Entrepreneurship and innovation in Ghana: enterprising Africa. Small Business Economics. doi:10.1007/s11187-008-9121-2
Vliamos, S. J., & Tzeremes, N. G. (2010). Factors Influencing Entrepreneurial Process and Firm Start-Ups: Evidence from Central Greece. Journal of The Knowledge Economy. doi:10.1007/s13132-011-0043-x

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