Question

Ananya is running a small café by the name of Green Tokai. It is earning profits and she wishes to expand her business by opening a bigger outlet. She needs additional funds for the same but she does not wish to rely on borrowed funds to expand her business. Name and briefly explain two sources of finance which she can use. Also state two reasons why she does not want to raise borrowed funds.

Answer 1

Racial or ethnic minority groups in the United States and Europe. A long tradition of academic research explores the experiences and strategies of ethnic entrepreneurs as they strive to integrate economically into mainstream U.S. or European society. Classic cases include Jewish merchants and tradespeople in large U.S. cities in the 19th and early 20th centuries as well as Chinese and Japanese small business owners (restaurants, farmers, shop owners) on the West Coast. In the 2010s, ethnic entrepreneurship has been studied in the case of Cuban business owners in Miami, Indian motel owners of the U.S. and Chinese business owners in Chinatowns across the United States. While entrepreneurship offers these groups many opportunities for economic advancement, self-employment and business ownership in the United States remain unevenly distributed along racial/ethnic lines.

Answer 2

Hey fellow ,

Following are two sources of finances she can use in order to raise funds for expanding her cafe;

1. She can take part in entrepreneurial galas and portray things from her cafe and sell them to earn extra money.
2. She can take money from incubators who give money to entrepreneurs so they can establish their business properly.

Following are the two reasons why she does not want to take borrowed funds;

1. She would have to return it and in case of banks, they have a high interest rate.
2. Borrowed money is a lot of responsibility ans hassle. If the expansion does not go profitable, you will still have to return which means it will lead you towards loss.

I hope the answer helpful.

Thanks