The Myth of
Undercapitalization
This year more than 17 million people will
become entrepreneurs, according to the National
Association of Self Employed (NASE). By the
end of the year, 8 million of them effort did not
succeed. Many will say the serious problem.
Many experts will say that undercapitalization is
the main reason for the failure of an entrepreneur
to achieve the dream of having their own
business. They will point out that failing
entrepreneurs did not start with a large enough
bank account to offset the period it takes before a
business is profitable. Statistics always back up
this theory because, sure enough, the money has
run out before the business is profitable.
Therefore, they argue, the theory must be
accurate.
Hogwash!
Undercapitalization
This year more than 17 million people will
become entrepreneurs, according to the National
Association of Self Employed (NASE). By the
end of the year, 8 million of them effort did not
succeed. Many will say the serious problem.
Many experts will say that undercapitalization is
the main reason for the failure of an entrepreneur
to achieve the dream of having their own
business. They will point out that failing
entrepreneurs did not start with a large enough
bank account to offset the period it takes before a
business is profitable. Statistics always back up
this theory because, sure enough, the money has
run out before the business is profitable.
Therefore, they argue, the theory must be
accurate.
Hogwash!
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 |
 |
 |
 |
 |
 |