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This post is special for me because since I became part of An Entrepreneur Blog project I have composed some articles and with this one I complete my first 30 writings. In this articles I have tried to share with our readers, tools that are useful for entrepreneurs and also my experience in the entrepreneurial path compared to being an employee because on my career hay have had the opportunity to see both sides of the coin.
For this post number 30 and for the next two posts I will talk about the difficulties an entrepreneur will have to face in his career. I am not writing about this subject expecting to discourage people that are trying to take this path. Many of the things I will be witting might be seen as negative, but today more than ever I know that one of the best choices I have done in my life was becoming an entrepreneur. I just write about this subject because I think it is better to know what to expect in order to know how to act when these difficulties arise.
In this way the first topic I am writing of is the difficulty entrepreneurs have in order to access to bank credits or venture capital. When we are going to create a new business we need financial resources. Normally we are not owners of these amount of resources and that is the reason why we need to look for them in the market. The solutions we almost always think of are bank credits or venture capital.
Bank credits have a negative aspect that is that even if our business is a failure we must pay them back. In this way we must look for grants in order to underwrite the credit we are asking for, and this might be our personal belongings or a consigner belongings. This is a difficult task, and actually I don’t recommend it because as I said you will have to pay the credit back regardless of the results of our business assuming a very high risk. Also you must take into account that the amount that will be borrowed will be according to the grants we present and many times these are not sufficient for the credit we need. Remember that it is very important always to begin with the amount we really need to start our entrepreneurship.
Venture capital is a subject that even though it has advanced in underdeveloped countries, it is still far from what we need and expect. In these countries there is still small number of companies that offer venture capital, and the amount they turn in are for small projects, expecting us not to dream of big projects. This is why my advice, if you can do it, is to look for venture capital in other places such as Europe or United States.
Summarizing, the first difficulty an entrepreneur might face is raising funds. This does not means that it is impossible to get them, but it is a subject the entrepreneur must take into account and work hardly in order to get them.
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