Advantages Of Equity Financing

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Recently, with the development of economy, there are many chances for everyone, which are easier access to launch a new business venture. Under this environment, more and more people are likely to develop a personal business, which is same as self-employed. There are many reasons as follows. First of all, it is an efficient way to increase income and improve standards of living. Running a good business, it can generate steady profit. Secondly, nowadays, there is a huge pressure on employment in society. Being a self-employed, it can avoid and relieve the pressure to some extent. Finally, it provides a platform to play a good performance. Meanwhile, it is an approach to realize self-value. That is the main reasons why most of people are interested …show more content…
In summary, based on personal business project’s features, it can be seen that equity financing is a better channels to raise funds than bank loans. Business owners and investors share the benefit and risk simultaneously. For small business, who may not meet bank loan’s qualification, equity financing is not only convenient, but also quite practical. It has strong possibility of operation. This is one of the most important advantages. Therefore, equity financing is suitable way for my personal business. Another key point is competitive advantage, it means business owner has a clear plan about their long-term development. And they have a good understand of food market. This things must be done before they decide to launch a new business. For instance, food industry must guarantee the quality of food, ensure raw material fresh. From the market ethic point of view, enterprisers are necessary to responsible for customers. Maintaining customer loyalty is a competitive factor, which will hold a profit sustained growth. It is benefit for expanding market. In order to keep a sustainable development, run a business not only focus on daily operation, but also should pay attention to multiple

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