How have globalization and information technology created new opportunities for

Question

How have globalization and information technology created new opportunities for entrepreneurs? Describe current demographic trends that suggest new goods and services for entrepreneurial businesses.

What are the benefits and risks involved in buying an existing business or a franchise?

Suppose an entrepreneur is considering buying an existing business or franchise. Which of the eight entrepreneurial traits do you think would most apply to this person, and why?

Describe the two main types of financing that entrepreneurs may seek for their businesses. What are the risks and benefits involved with each?

Why do most entrepreneurs rely on personal savings, credit cards, and money from family and friends? Why is it difficult to obtain bank financing?

Explanation / Answer

It's such a large question for the points though doing the best I can putting as much detail... Provide me the best rating and me only as I did it first correctly and others copy my answers, thanks... Here you go: Globalization and IT have certainly created new oppurtunities for entrepreneurs. Entrepreneurs have to think globally to survive locally. Even the smallest "Mom-and-Pop" shop might sell products made overseas, and that shop can also sell to customers in other countries through the Internet. All this interconnectedness creates a domino effect when one country's economy suffers. Exports might drop in that country, leaving entrepreneurs without products and raw materials they were used to buying. Entrepreneurship today means staying abreast of worldwide trends. Benefits involved in buying existing business or franchise is that international chains can control the whole market by using bargain prices even if they are located in their very neighbourhoods.. Also small businesses are able to compete globally as they using internet they can sell locally made products from their newly bought business/franchise.. Disadvantages will be that businesses would need to adapt their newly bought business/franchise regularly and instantaneouly according to current and latest trends.. The biggest trait the entrepreneurs would need in this case is "compettitive spirit" among the other traits as it is this quality that will allow entrepreneurs to make them enjoy a challenge and know how to win it successfully and starting a new business is certainly a tough challenge.. 2 types of financing are: debt and equity.. Debt issue is tax exempt and so is its issuance.. Raising money from debt shows that the business is confident about success.. Disadvantage is that debt increases gearing and alot of gearing is problem for entity to operate as going concern. Equity: Have to raised from ordinary shareholders and a bit of convincing needs to be done plus equity issue is not tax exempt.. Advantage is that it is generated from an internal source and it decreases gearing.. Entreprenuers realy on personal saving, credit cards and money from friends and family as these are internally generated funds, they have low or no issue cost, there doesn't need to be done too much convinging in order to get money this away, and of course any issue of such funds is tax exempt and in additon can be readily available... Bank financing is harder as the bank manager needs to be convinced that the business can provide the loan back with interest by its maturity date... The more the borrowing from bank the less harder it will to obtain bank financing in the near future if previous loans are still not returned... Hope you like my answer..

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