Financial Risks of a Start-Up Business Analytical Essay by Nicky

A risk assessment of the three ways to finance a start-up business.
# 128882 | 1,046 words | 2 sources | APA | 2010 | US
Published on Aug 16, 2010 in Business (Finance, Investment and Banking)

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The paper analyzes the three alternatives an entrepeneur has to acquire the capital he needs to establish his business; contracting bank loans, issuing stocks or setting up a joint business with a partner. The paper explains the advantages and limitations of these three financing possibilities, and points out that it is not a tragedy if the initial profits are reduced to inexistent; what is important is for the entrepreneur to persevere.

Financial Risks of a Business During Start Up

From the Paper:

"The contemporaneous society reveals a tendency of every man for himself. Within the business community, this has materialized in the opening of numerous small businesses, run by former corporate employees, who became motivated by the desire to be their own bosses. We see examples of successful entrepreneurs every day and each of us may be tempted to try and open a business. It must however be mentioned that the risks of opening a business are rather complex and more numerous that one may seem to think. And they spread on numerous levels, such as marketing or management risks, financial risks or human resource risks."

Sample of Sources Used:

  • Bender, R., 2002, Corporate Financial Strategy, 2nd Edition, Elsevier Science and Technology Books
  • Fabozzi, F.J., Peterson, P.P., 2003, Financial Management and Analysis, 2nd Edition, John Wiley and Sons Inc.

Cite this Analytical Essay:

APA Format

Financial Risks of a Start-Up Business (2010, August 16) Retrieved January 27, 2023, from

MLA Format

"Financial Risks of a Start-Up Business" 16 August 2010. Web. 27 January. 2023. <>