Analysis of Funding and Challenges: ABC Limited New Venture Report

This report examines the establishment of ABC Limited, a new venture focused on home decor retail in India. It explores the company's financial needs, highlighting bank loans as a suitable funding option, and discusses alternative funding sources like angel investors, business incubators, venture capital, and crowdfunding. The report identifies challenges such as marketing strategies, competition, and employee hiring, as well as the influence of internal (legal, technological) and external (economic, social) factors. It emphasizes the importance of risk management in entrepreneurial ventures and concludes that effective planning and strategic funding, especially through bank loans, are crucial for ABC Limited's growth and development. The report references several academic sources to support its analysis.

Enterprenuership and innovation

 ABC limited is the private ownership firm that plans to offer home
decor items to consumers and entity wants to open new shop or its
new venture in India.
 It will also throw some light on the financial requirements for
establishing new venture.
Introduction

Entrepreneur of ABC LIMITED needs to find out the capital sources for
establishing new retail shop in India. Financial need can be fulfilled by various
methods such as bank loans personal savings outsider investment etc. It involves
lot of fund obtaining capabilities of business, following are some capital
investment sources:
 Angel investors
 Bank loans
 Business incubators
 Venture capital
 Crowd funding
The capital sources of new venture

Bank loans
 These funds can be obtained through banks in exchange of a
security deposits (Kumar, 2015 ). ABC LIMITED is a new company in
India with a average start-up budget so it finds bank loans as a suitable
option and bank promotes new company by providing loans in lower rate
of interest.
 ABC LIMITED will chose this option because it is easily available plan
to get financed.
Suitable funding option

 Funding
Major problems to start operational activities
 Marketing strategies
To increase the sales of home decor items
 Competitive firms
To provide innovative concepts to society
 Hiring of employees
To increase the manufacturing and production of home decor items
Challenges and difficulties in establishing
ABCLIMITED in India

 Legal
 Technological
 Political
 Economic
 Environmental
 Social and Cultural challenges
Influence of internal and external business
environment

 Entrepreneur need to identify various ups and downs of operating large
business activities.
 Starting up a new venture require certain measures to meet the marketing
strategies and needs of the customer.
 Risks are commonly considered as the possibility of loses
 It happens due to the change in preference of people.
 It may be internal risk or external both affects the business and restricts
the growth.
The risks involved in the process of business venture

 It has been concluded from the above context, that setting a new venture
requires strong planning and strategies.
 Establishment of a new company cannot be possible without the efficient
sources of funding.
 The study has also provided effects of external and internal factors in
sustaining the growth and development of business.
 It is also concluded that choosing bank loans as a best funding option
promotes the growth of ABC LIMITED.
Conclusion

 Bruton, G. & et.al (2015). New financial alternatives in seeding
entrepreneurship: Microfinance, crowdfunding, and peer‐to‐peer innovations.
Entrepreneurship Theory and Practice. 39(1). 9-26.
 Jimoh, M., & Ezeana, P. C. (2014). entreprenuership education and
employability of tertiary education graduates in nigeria. journal of
educational review. 7(1).
 Konda, I., Starc, J., & Rodica, B. (2015). Social challenges are opportunities
for sustainable development: tracing impacts of social entrepreneurship
through innovations and value creation. Economic Themes. 53(2). 211-229.
REFERENCES