Laid-off workers who become entrepreneurs because they cannot find meaningful employment with another company are known...

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Laid-off workers who become entrepreneurs because they cannot find meaningful employment with another company are known as entrepreneurs by necessity. A major national newspaper reports that these entrepreneurs by necessity are less likely to grow into large business than are entrepreneurs by choice. This article states that 81% of entrepreneurs in a certain area are entrepreneurs by choice and 19% are entrepreneurs by necessity. Only 1% of entrepreneurs by necessity expect their new business to employ 20 or more people within five years, whereas 13% of entrepreneurs by choice expect to employ at least 20 people within five years. If an entrepreneur is selected at random and that individual expects that his or her new business will employ 20 or more people within five years, what is the probability that this individual is an entrepreneur by choice? A colleague is thinking about pursuing equity financing for their business to raise capital and has asked you as the consultant for advice. He wants to know what an entrepreneur needs to know before pursuing debt financing options. Analyze the advantages and disadvantages of equity financing. The colleague also wants to know if the business is successful, what does it mean for the investor and the entrepreneur. The summary would apply and include these points: (1) Explain how equity financing works; (2) What are the advantages of equity financing?; (3) What are the disadvantages of equity financing?; (4) If a business is successful, what does it mean for the investor and the entrepreneur? 3. We have discussed that financing for businesses generally comes in one of two forms, debt or equity. a. To the entrepreneur, what are some of the advantages of taking on debt to grow their business? b. To the entrepreneur, what are some of the disadvantages of taking on debt to grow their business? c. To the entrepreneur, what are some of the advantages of giving equity in exchange for financing the growth of their business? d. To the entrepreneur, what are some of the disadvantages of giving equity in exchange for financing the growth of their business? e. To the investor, which form of financing represents the higher risk, debt or equity? Why? Laid-off workers who become entrepreneurs because they cannot find meaningful employment with another company are known as entrepreneurs by necessity. A major national newspaper reports that these entrepreneurs by necessity are less likely to grow into large business than are entrepreneurs by choice. This article states that 81% of entrepreneurs in a certain area are entrepreneurs by choice and 19% are entrepreneurs by necessity. Only 1% of entrepreneurs by necessity expect their new business to employ 20 or more people within five years, whereas 13% of entrepreneurs by choice expect to employ at least 20 people within five years. If an entrepreneur is selected at random and that individual expects that his or her new business will employ 20 or more people within five years, what is the probability that this individual is an entrepreneur by choice? A colleague is thinking about pursuing equity financing for their business to raise capital and has asked you as the consultant for advice. He wants to know what an entrepreneur needs to know before pursuing debt financing options. Analyze the advantages and disadvantages of equity financing. The colleague also wants to know if the business is successful, what does it mean for the investor and the entrepreneur. The summary would apply and include these points: (1) Explain how equity financing works; (2) What are the advantages of equity financing?; (3) What are the disadvantages of equity financing?; (4) If a business is successful, what does it mean for the investor and the entrepreneur? 3. We have discussed that financing for businesses generally comes in one of two forms, debt or equity. a. To the entrepreneur, what are some of the advantages of taking on debt to grow their business? b. To the entrepreneur, what are some of the disadvantages of taking on debt to grow their business? c. To the entrepreneur, what are some of the advantages of giving equity in exchange for financing the growth of their business? d. To the entrepreneur, what are some of the disadvantages of giving equity in exchange for financing the growth of their business? e. To the investor, which form of financing represents the higher risk, debt or equity? Why?