Question

Why is it difficult for budding entrepreneurs to secure bank financing or venture capital?

Answer 1

Firstly let us clear about the definition of an entrepreneur.

An entrepreneur is a person who starts a new business idea buy taking risk.

There are various reasons due to which it is very difficult entrepreneur to secure venture capital funding -

1.The idea may be not approved or like by the venture capital team due to many factors like return on investment, very expensive project, etc.

2. Maybe the startups required a very high amount of initial investment which cannot be provided by many venture capital fund due to less availibility of fund.

3. As we all know that in the market there is a cut-throat competition so if an idea doesn't stand out of the Other competitions then there will be a less chance of getting venture capital funding.

4. Venture capital funds and not provided are very rarely startups because in new startups there is entirely a new idea which is different from the market and investor think that idea of may be work or not