Sample of Entrepreneurship and Innovation

Main Body

At present time many small companies are taking place in market. It is the evaluation of opportunities which is grabbed by the entrepreneur. When a person starts their business so he identifies about the chance and tries to achieve that honor(Audretsch and Link, 2012). It requires some necessary thing which helps the organization to start a business and produce a new product. The most necessary thing in finance to begin a company. It is the most part of resources without the arrangement of money people are unable to find out new market opportunity. A firm use all resources to produce their product and establish research to collect information. Leader and manager start their research and provide the specific result of a particular topic. Now I am going to describe sources of finance and it is a very important term for every type of enterprises. Innovation refers to the process of developing new and new techniques by which products and services are generated for the benefit of providing products and services that cater to the needs of the small enterprises in accordance with the political, legal, social, technological, economic factors that are required for developing the demand of products and services in the market. Innovation is considered an important aspect as every product or service needs to be innovative in order to provide quality products and services to the consumers at an effective and efficient origin. Sources of finance are as follow which help an organization to manage finance:-

Friends and family:- It refer to the entrepreneur's friend and family member who can help a person to start their business. They can provide money and complete the requirement of finance. It is most necessary to start up for any organization(Chatterji, Glaeser and Kerr, 2014). A person uses their members as an investor to get help. A person should not define their plan and risk because it creates influences in friend and family people. It should ask directly about the load and investment. An entrepreneur can sell their equity stock to them and provide ownership for trust. Even it can hire a lawyer to create an equity structure plan and issue share to the family group. As Oscar is recruitment and consultancy company which provide job to candidates. It can also use this source to start any new entity and innovate anything in the old organization(Leyden and Link, 2015). Finance help all company to make a new product and also aid to development in a company. Oscar can use their family and friend members money as an investment and use as a source to implement a new plan and start any new business. It can provide better placement and vacancy to their group for making trust.

Government funding:- It describes that govt. authorities start a program to provide a financial framework to the entrepreneur which help him to provide money in the future with an additional benefit. In this section, management invests their money in govt program Fundica. It works as a businessman's capital which is used on time(Cooke and et. al., 2011). Every company should utilize that opportunity for development and growth. It is a free online search tool which is used for filtering to the exact match of the firm's status and funding necessity with lots of authorities program. As Oscar company also have an option to invest in a government program and gain long term benefit beside from authority. It is very useful and trustful to get an amount from a particular program. Every company management refers to this financial resource. They start their investigation on these plans and identify that which is more beneficial to get more money. After that, they prepare a report and provide that to top-level and management. They also provide the investment suggestion to superiors. Government funding is the best resource and people can use that resource easily. Authority return entrepreneur money with interest and other benefits. So it is an important part to arrange finance.

Bootstrapping:- It describes the situation of entrepreneur who starts their company with low capital. It refers to personal financing and investment which is identical to build a firm. An individual organization can also raise fund from the operating revenue of the new entity. Bootstrap concept help to manage money and take better decision related to finance(Schaltegger and Wagner, 2011). It is a financial approach which assists any company to increment and development. As Oscar enterprises can use that plan to support financially. Manager and leader should identify the source and how can they use that source in enterprises. It is a recruitment firm so it can take advantage from bootstrapping. It can invest money in a different company and make contact with them to recruit employee through Oscar service. Bootstrapping unable to provide a lot of money but somewhere it cares about the financial system in an organisation.

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Credit Union:- It is very helpful to provide the fund to business. Many firms use unions to the arrangement of money. It works as a supplier who supplies money to start a new company and innovate new product(O'Connor, 2013). At the present time, many corporate units deal with credit unions. It also includes many banks who supply enough amount to their customer. The entity can star their work after incurred a sufficient amount which helps in innovation and completes any particular task. Many institutions are there which create for supporting to corporate and development of business units. These associations give money for a specific time on their rates and get interested from their customer. These all union work as circulating the money among companies. As Oscar firm can also arrange fund from these institutions and use that money to investment and full fill the other purpose requirement. Management uses all approaches and plans to complete the need of organization(Onetti and et.al., 2012). A company is unable to grow itself if it does not have proper finance or resources. It shows the negativity in business and company can get loss also in the future. So superior level should try to implement a new strategy and try to achieve market opportunity.

Angel investors and venture capitalists:- It refer to some individual person who is ready to invest its money if corporate does not have own fund. They work a finance helper who complete money need on time and take advantages of the company. Many investor and capitalists provide many facilities related to funding. This angel may happen the government and private institutions. Both are work partially and they have their different terms and condition. They use their interest which is different from each other(Sotarauta and Pulkkinen, 2011). So If anyone want to use these angels as resources so it should clearly identify the need for money in the organisation. As Oscar company require money to open a new branch in the global market which hires new employees for other organization. So it can arrange fund from these institutions and angels to open a new branch. It is aid to the development and growth of Oscar. So it clearly defined that every company has need of finance which helps the organisation to achieve goal and target. Leader and manager care about all these financial services and get a proper fund from them. They use that money according to requirement and enterprise need. Oscar company also care about all their resources which create a healthy environment and make a working scenario in business. Financing system is mandatory for any company and superior or upper-level manager manage this system.

It is one of the most importation steps to start a new entity. It also analyses the mobilization of financial resources. According to Kotha and George entrepreneur use formal and informal sources of fund which raise fund without any experience. Startup unit finds out the investor who can invest their money in the company and provide the proper fund to run a business unit. People contribute to investment and get long and short term benefits. They get a dividend from the entity in the format of profit(Lee, Hwang and Choi, 2012). It creates a strong relationship between investor and firm. Many times these finance resources change the organization's decision. A firm can use also the traditional method to arrange money. These old methods refer to many sources which help in funding. The bank loan is the most traditional method to complete the need of amount. People can adopt a loan from any financial institutions. Many organization neglect the bank loan system and use other things as resources because they have not enough time to complete the procedure of bank loan. It shows the negativity towards loan facility. New generation opens start-up firms on a small level and they always need fast money installation to complete the target. Finance association takes security after that provide loan to start ups. If nay person does not have any property so how he will get the loan so it system failed but not in fully manner. At the present time, some organization collect money from the bank and other resources.

Source of start-up finance is useful to new firms

Companies use many methods and system to manage money requirement in the organisation. It is the basic need of any firm which full fill the requirement of an entity. Every start-up business refers money because without the arrangement of finance a firm unable to growth(Galindo and Méndez, 2014). This is the most important element for a firm. When a start-up take place so it requires many things as an idea, equipment, technology, finance, and some other important factor. These elements have needed money. Without any management, anyone can't start their enterprise. The new entity uses many methods of financing and use their channels to full fill the need. The market provides many opportunities for people and new firms also so the company can use new finance chance to improvement and development. At the present time, the angel investor is the most helper for the new firms which is described above also. Government funding refers to receiving funds from government entities like local government, property, cooperative agreements and others. These funding does not include tax credits, exemptions(Szirmai, Naudé, and Goedhuys, 2011). In any enterprise which serves well in society is encourage and supported by the government. It is safe to finance business. The government takes different policies for companies so that they can conduct their business in that particular manner. The government also initiate innovation. Authorities can help conduct training for new start-up and also finance for their daily operations. There are many more other sources of finance also but according to firm go for the most accurate way to get capital. In context to Oscar recruitment company in the UK is starting is business and they are getting funds from the government.

Since the cost of research and development is very high. Government supports them to conduct these activities. These research are done at colleges and universities. This can generate new technology. Authorities also support them by deducting tax from R&D. This can way company gets a reduction in cost(SLeyden, and Link, 2015). Oscar is a small company having 50 employees in their enterprise. To support these kinds of organization the government gives them extra subsidiaries. There are many schemes start by the government in which these start-ups can participate and get the advantage.

There are many advantage and disadvantage of government funding. The advantage is they provide huge monetary support to startups. This can help a small enterprise to raise capital for their day to day activities. These funds can improve the creditability of the firm and give enterprise public exposure. As a disadvantage, the government gives fund on the reimbursement system. There are lots of formalities which a new startup need to face while taking fund from the government. These formalities take time and complex in nature. There are lots of rules and regulations which enterprise need to execute while opening a startup. The cost of a firm can be increased in doing expenditure of accountant and other professional. There are strict rules of government to pay amount ion time. If the firm is not able to pay on time. Authorities can take all the properties of the business unit. There is chances of misusing funds granted by the government. As the time is taken by the firm to get finance from the government. This can make delay other activities also. So every funding source is having its own advantage and disadvantage. It is important to start to choose the right sources of fund. Because finance is main priority of any business and activities can smooth run if there is a fund available on time.

There are various sources of finance that are required by small firms in developing their products and services in the competitive market. The main source of finance is government funding. The government helped various small scale businesses in developing their business organizations. There are various schemes offered by Govt(Hall, J, and et. al., 2012). that help small businesses in creating and establishing their enterprises.

Grants– There are various grants which have been provided by the Govt. nowadays in starting and developing own business activities. These grants are aimed in the manner that all the small business enterprises gets a platform to develop and grow in the competitive environment.

Investment- Govt. help small businesses in developing their business enterprises by providing them an investment of more than 5 Lakes euros and these Govt. agencies are the main source of getting investment from the small and medium enterprises(Schaltegger and Wagner, 2011).

Opening of Micro small and medium enterprises- These enterprises are being developed by Govt. on the level of providing credit to all the sectors on the factors of the priority basis. These priority sectors were generally given 40% of the amount of total budget that the state receives. These sectors helps in developing the GDP Of the nation.

Innovation means that there are many new business enterprises that need research and development funding because their aim is to develop capital based products and services. For this Govt. provides all the supportive materials to the small firms(Onetti, and et.al., 2012). Tax relief implies that when any small firm is being opened in the nation then the nation should grant them tax benefit as that will help them to earn their livelihood.

Arguments in favour of Govt. Funding

Govt. funding helps in developing the small sectors. Along with this, it will help in developing individual entrepreneurs. GDP Of nation increases with increase in Innovative products and services. This will help the nation to grow and develop and individual development also takes place.

Arguments in Against of Govt. Funding

Govt. funding is damage to the nation's natural and human resources. Along with its tax redemption also damages the economic power of the nation. Entrepreneurs develop a similar type of products and services. There will be no balance between high quality and low-quality products because these products which are new to the market will have to develop their images and their products need to be recognized in the marketing environment. Above all the information describing the govt funding which helps all companies to provide the fund with interest. It is a source of funding and aid to provide full knowledge of govt policies. The financial program helps all person and people to identify internal and external opportunities(Audretsch, and Link, 2012). These changes give information that how can a firm use it and improve in their goods quality and other things which are directly related to the financial system. This is work an instrument which prefers legal terms of money and appropriate use of money. Above information provide full information related to govt funding and how can a business use that funding. It can measure a contract also which reflect all the things as time period, money and other terms and condition of the stock. Many people give their positive and negative review of government funding. Finance is very necessary to manage work and superior level of people care that they use their money as a better place.

Conclusion

It is an essay which describes new innovations and entrepreneurship. It also refers to bout the finance term in the new entity and provides closely information of finance. It is a very necessary and essential term for new or old organization. A firm can use many finance activity to achieve the target and goal. When a firm enters the market so it should follow many rules and regulation. It should also make a plan and strategy to innovate the new product. Goods innovation is the most beneficial thing. Because it helps to increment in organization growth. Management always care about the update in goods due to changes in product a firm can get the advantage. Innovation is work as an opportunity and provides many benefits to firms. Start-up company use many sources of finance. It essay describe about a particular origin. Many people give their reviews on that approach. Start-up company use government funding and angel capital to invest money and get many profit and chance to complete the task of business. Many person is in favor of government funding and some people refuse the concept of govt funding. If any start-up company wants to invest its money so it should use funding.

References

• Szirmai, Naudé, and Goedhuys, 2011. Entrepreneurship, innovation, and economic development. Oxford University Press.
• Audretsch, and Link, 2012. Entrepreneurship and innovation: public policy frameworks. The Journal of Technology Transfer
• Chatterji, Glaeser, and Kerr, 2014. Clusters of entrepreneurship and innovation. Innovation Policy and the Economy
• Leyden, and Link, 2015. Public sector entrepreneurship: US technology and innovation policy. Oxford University Press, USA.
• Cooke and et. al., 2011. Handbook of regional innovation and growth. Edward Elgar Publishing.
• Hall, J and et. al., 2012. Entrepreneurship and innovation at the base of the pyramid: a recipe for inclusive growth or social exclusion?. Journal of Management Studies