03 Nov Week 1 Assignment: Funding Options (CO1, ILO.B.IS.
Week 1 Assignment: Funding Options (CO1, ILO.B.IS.1, AL.2, DL.2, BIS.1)Select two of the funding options discussed in this week’s lesson (Crowd Funding and SBA Loans) and materials and complete the following:Explain why you believe each of the funding options would be the best choice for you.Evaluate the necessary factors to make an investment.CrowdfundingAccording to the website Fundable (What is Crowdfunding, 2014), which claims to have helped raise over $252 million for 377,000 start-ups from over 23,000 investors as of early 2016, crowdfunding is a technique of raising money for start-up businesses through the collective efforts of friends, family, and individual investors.Even though crowdfunding only accounted for 3% of the start-up capital acquired in 2015, it is a relatively new phenomenon that has grown rapidly to a $5.1 billion industry from 2012 to 2014 that is estimated to raise in the neighborhood of $2 million every day (Okyle, 2015). Crowdfunding is accessible to 90% of the world’s population, so it seems that this method will continue along its supernormal evolution for the foreseeable future.SBA loansIf you have not yet visited the U. S. Small Business Administration site, please do so soon. The site offers a variety of resources for entrepreneurs, including tutorials, information on local assistance, information on loans and grants and information on actual business opportunities via government contracting. The SBA’s most common loan program is the 7(a) program, which includes financial help for businesses with special requirements, such as those being displaced by NAFTA. The SBA often does not actually provide the funds, but guarantees your loan with an SBA approved lender. A trip to their website is a must, as there is just so much available and it changes from day to day.Please review attached assignment rubricInclude a minimum of two scholarly sources (in addition to the textbook) Written paper at least 2 pagesFormat your paper according to APA guidelines