Encouraging Entrepreneur and Startups
The Small Business Association of the United States works towards encouraging entrepreneurs and startups to improve their performance. By stating that their objective is to encourage entrepreneurs and startups, the SBA means that they introduce measures to provide both financial and legal pieces of advice to such business (Small business administration). The association grants startups the platform to access information on the market that influences the success of their businesses. Through their internal mechanisms, the SBA has been able to fund and support new businesses across the country.
Are Startups the Same?
Though startups face similar challenges and opportunities, they cannot be considered similar. First, the environment of operation for new businesses varies and has an influence on the chances of success. Startups in service and manufacturing industries face different challenges and require unique legal and financial support or advice. As a result, the SBA cannot embrace a common approach to startups and entrepreneurs but should instead focus on introducing specific and business centered service to the business. As an association, SBA should be made considerate decisions based on challenges in a specific environment (Small business administration).
Do Startups Require the Same Financial Assistance and Advice?
Startups are designed to provide solutions to different market opportunities. When an entrepreneur develops an idea, he is buoyed by the gap that he notices and, therefore, comes up with a suggestion that can fill the void and fulfill the needs of the market. Though startups are all considered as new entrants into the business world, they cannot be placed in the same basket. Startups do not require the same financial support and the money allocated to them should be based on their specific market and nature of goods or services to be developed. New businesses in the manufacturing industry must acquire machinery and train its employees on how to safely work and deliver the goals of the company. A similar startup in the service industry will simply need to recruit professionals who have the ability to offer the needed services to the clientele. Because of such variation, the two industries will need different startup capital. With SBA providing similar funding for startup companies, entrepreneurs in the manufacturing sector will be stifled and denied the chance to not only operate but also expand. Therefore, startup businesses should have an opportunity to access capital based on their business plans and the industry of operation (Small business administration). Changing the SBA Approach to Startup EntrepreneursSmall Business Association of the United States must introduce a new approach to startup financing and support. With their current approach, the association has denied labor and technology intensive startups the support to grow and expand. To incorporate fairness in their service delivery to the new business, the association should provide financial support based on the financial portfolio that the company has developed. Consideration should also be given to the industry and the nature of business …