Money and entreprenuerial - Essay Example

Money and Entrepreneurial Money and Entrepreneurial Man power, Machineries, Materials and Money are considered as the 4 M’s of resources which are required to start a business. Out of these 4 M’s which is more important is a question still debated by many entrepreneurs. In some countries, because of illiteracy and lack of infrastructure facilities, suitable man power may not be enough for setting a business. In some other cases the machineries and materials required for the intended business may not be available.

But for an entrepreneur, there will be enough money sources irrespective of the country where he is staying or planning to set up his business. It is a false belief that money is the most important resource needed to start a business. . “Many people get the business start up money they need by mortgaging or remortgaging their homes, or selling property or possessions – even those who do succeed in getting a start up business loan. The second most popular source of business start up money.

Family and friends are often willing to provide a business start up loan or sometimes even an outright gift. It’s actually easier than ever to get a business loan, as more people than ever have been successfully starting small businesses and the big banks have more interest in small businesses than they used to.” (Ward, 2009) Most of the people have a false belief that money is the preliminary requirement for starting the business. They might think that if enough money is there Money and Entrepreneurial 2then setting up a business is an easy task.

In fact the reality is exactly opposite to this concept. Even if without having a single dollar in hand a business can be set up. All the countries have financial institutions which are ready to lend money to any investors, if they are convinced of the abilities of the entrepreneur and his business idea. More over money can be collected from the family and the friends also. If you have a business idea and lack of money you can think about a partnership business also in which your partner will invest the required money while you can concentrate on other aspects of the business.

In any case you can set up a business even if you have less money in your hand. Most of the countries especially the developed countries like America, Britain, Germany, and France etc have enough resources like machineries, materials, money etc. But they experiences severe shortage of manpower. They are utilizing the possibilities of outsourcing to reduce the expensive labor cost in their countries by utilizing the cheap labor market of the India like countries. So for these countries, the most critical component is the man power not the money, in setting up a business.

Poor countries like, Somalia, Sudan, Nepal, Sri Lanka etc may have the shortage of resources like materials, machineries and man power. But even in such countries the banking sector is ready to pay loans to the entrepreneurs. So even in such countries, money may not be a critical component for starting a business. Money and Entrepreneurial 3ConclusionMoney is only the secondary resource needed for the set up of a business. Money needed for the business can be collected as business loans from the financial institutions or from the family and the friends.

But it is difficult to locate resources like manpower, materials, machineries etc. So money is the least important among the resources needed for setting up a business.Money and Entrepreneurial 4References1. Ward Susan,(2009) 8 Sources of Business Start Up Money, Retrieved on February 21, 2009 from http://sbinfocanada.about.com/od/financing/a/startupmoney.htm