Writing Resources
Introduction New trends in the USA show that small firms less than 100 employees are becoming increasingly important for the economy From the 1980s these small firms created more jobs and were responsible for more innovations than Fortune 500 companies Denis 2004 As a result there has been an increase in the amount of capital in the private equity market A major aspect of entrepreneurship is the ability to obtain financial funds Entrepreneurs have several options to obtain these funds and each has their advantages and disadvantages This essay gives an insight into the advantages disadvantages and trends of several financial models by comparing two articles about entrepreneurial finance The first article is How do entrepreneurs obtain financing An evaluation of available options and how they fit into the current entrepreneurial ecosystem written by Wright 2017 Wright argues that venture capital is in the limelight while other financial models are easier to obtain and yield more agreeable terms This article therefore assesses seven alternative models which are used by entrepreneurs to fund their business The second article in this comparison is Entrepreneurial finance an overview of the issues and evidence written by Denis 2004 Denis reviews four different areas of finance alternative sources of capital financial contracting issues public policy and the dynamics of private equity returns For this comparative essay only the first area alternative sources of capital are discussed Denis 2004 and Wright 2017 mention that research on funding models is lacking The aim of the two papers is thus to strengthen the understanding of these models What differs between the two papers is the date when it was published
