Remarkably the firm should have employed loan capital only after introducing

Remarkably the firm should have employed loan capital

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financing to access management expertise. Remarkably, the firm should have employed loan capital only after introducing its product to the market (Yazdanfar & Ohman, 2015). This financing would facilitate business expansion and upgrading its operations to meet market demand. The source of capital determines the success or failure of a project. Every phase of an investment activity has its ideal source of funding. The entrepreneurship activity of Trikela Motors Company shows that equity capital and loans are the best choices for financing business startups and expansion activities, respectively. Notably, the Black Obelisk Laundroid project failed due to the use of loans in the initial phases, instead venture capital would have been the best choice.
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WEEK 6 ENTREPRENEURSHIP 4 References Coleman, S., Cotei, C., & Farhat, J. (2016). The debt-equity financing decisions of US startup firms. Journal of Economics and Finance , 40 (1), 105-126. Fourati, H., & Affes, H. (2013). The capital structure of business start-up: Is there a pecking order theory or a reversed pecking order. Technology and Investment , 4 (4), 244-254. Summers, N. (2019). Laundroid Company folds before its giant robot does. Retrieved August 6, 2019, from - bankruptcy/ Yazdanfar, D., & Ohman, P. (2015). Debt financing and firm performance: an empirical study based on Swedish data. The Journal of Risk Finance , 16 (1), 102-118.
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