Managing the New Enterprise Essay Example | Topics and Well Written Essays - 2750 words

Managing the New Enterprise - Essay Example Raising equity finance in relation to Peter and Julie’s ideas such as from venture capitalists and business angels is advantageous to entrepreneurs. First, business angels can enable the new enterprise to achieve great success; thus, investors will realize their investments lest the business venture is doing well. Burns (2007, p. 123) argues that business angels can enable the entrepreneur to improve their business activities. Secondly, venture capital plays a significant role in driving business growth and employment activities. This is crucial because it deliverers valuable skills helps in strategy and decision making; thus enabling the company to increase their performance levels. It also allows the development of new technologies in the business and their applications; thus contributing to high productivity levels. Venture capital is not for every entrepreneur even though how profitable it would be. This is because it is not a business solving needs of an entrepreneur, but rather helping the entrepreneur to achieve high profitability or revenue levels. Moreover, venture capital and business angels are among the most compelling forces driving business economy-wide advancement to increased business productivity. The business may focus on advancing fundamental business performance means; thus, the two equity finances would be the potent forces for contributing to increased business performance. Raising venture capital and the business angle is crucial because it will enable new ventures to develop and reach their business goals successfully(Fraser and Simkins 2010, p.22). Every entrepreneur expects to create a winning business; thus getting enough capital for the business is crucial. Berman, Knight, Case and Berman (2008, p. 46) argue that it is only a few entrepreneurs who become successful in raising equity finance for managing their business. It is also only a few entrepreneurs who are able to generate equity finance and few of them can meet the ange l or venture capital fund requirements.