Online Marketing

Introduction

Introduction of Internet in business is a good decision towards expanding your sales and eliminating unnecessary expenses which are incurred through the manual process. Your Company should ensure that proper measures are taken in order to promote customer relations since they are often neglected during online conduction of business.

Internet will provide a favorable platform for advertising your products hence promoting creation of new markets across the Nation. Your Company will require a website which will be used to advertise new products on sale, promotions, and serve customers in an easy way. This website will require frequent maintenance in order to eliminate flaws which may violate the privacy of the Company. Moreover, frequent testing is necessary in order to ensure that all its components are properly working.

Considerations and Findings of Online Marketing

Effective online marketing techniques are crucial in order to ensure that the products are viewed by large population of target publics. The information explaining about different products on sale should be clear in order to avoid ambiguity which may discourage customers from purchasing them. Moreover, the images contained in the website should be in 3 dimensions in order to promote a clear view since they will not be tangible(Jacky, 2010).

Findings

1.      Frequent Updating of Information

The information contained in the website should be reviewed frequently in order to make possible alteration where some items have been purchased(Livingstone, 2012). In case of price change in the items being advertised, the information should be updated accordingly in order to avoid unnecessary misunderstandings. According to Livingstone (2012), a website which is frequently updated is likely to attract more viewers by 17% than the one which contains outdated information.Therefore, the outdated information within your website should be deleted and the up to date one posted.

2.      Information about Management of the Company

Changes about the management of your Company may take place. For instance, new employees may be brought in in order to replace others who have been either sacked or retired. There is a need for your customers and stakeholders to know about such changes when they occur(James, 2006). Therefore, instead of writing memos to all departments related to your Company, you can post the information in the Company’s website in order to be viewed by the concerned parties. James (2006) says that after conducting a research, he noticed that approximately 73% of shareholders and customers feel comfortable when they know all the staff which runsthe businesses they are associated with.

3.      User Friendliness of the website

The website should be easily accessible to large variety of electronic devices. This can be achieved through choosing of simple domains which allow access to a large number of computers. Moreover, it should be arranged into sections which are easily visible in order to enable customers to click on the most relevant sections to access services(Jullie, 2008). A website which is complicated access discourages many viewers. The attention of viewers is drawn 3 times more to the user-friendly websites than complicated ones(Johnston, 2000).

Advantages of Online Marketing

Online marketing provides a good opportunity for large number of target publics to access the relevant information about different items introduced in the market. Moreover, it promotes proper pricing of different commodities since consultations can be easily done in order to compare prices offered by other companies(Albert, 2004). Therefore, it becomes easy to determine the proper price to award to various products in order to survive competition and secure profits.          

                                                 Disadvantages on Online Marketing

It is expensive to develop effective software which addresses the needs of your customers better than manual services. In most cases, customers are attracted to certain businesses by the hospitality of their staff. This aspect can only be viewed through physical interaction between them. Therefore, introduction of online marketing may erode the sense of hospitality hence leading to low attraction rates of customers. Moreover, it is expensive to develop and maintain online marketing software(Brian, 2012).

                                                               Recommendations

Many people use the Internet in order to compare prices of different items in order to choose the most favorable stores from where they can make purchases. Therefore, your Company can use the Internet to ensure that proper pricing of the items being sold is done hence attracting many customers. Moreover, it is useful in conducting market analysis in order to discover the most profitable items which can be introduced in market in order to secure high profits(Courger, 1998). This can be achieved through comparing the practices of different companies in order to discover what customers need most.

Conclusion

It is a wise decision to introduce online marketing since it promotes sales in wide range of target publics. Moreover, it encourages market analysis in order to determine the proper pricing of different commodities and know the best lines of duty to engage in. Though online marketing opens up the Company to large number of customers, it entails some expenses. The online marketing software requires frequent testing in order to ensure that it is properly working and avoid violating the privacy of the Company. It also requires keenness in developing in order to promote user-friendliness of the software.

References

Albert, a. M. (2004). Advantages of Online Marketing. Colorado: The Star Publishers.

Brian. (2012). Challenges Facing Online Marketing. New York: Johnston Publishers.

Courger, J. (1998). Effective Ways of Promoting Business Through the Internet. New York: John & Sons.

Grunig. (2008). How to Improve Customer Relations Through Online Marketing. Cambridge: Cambridge University Press.

Jacky. (2010). Developing online Marketing Software. Cambridge: Cambridge University Press.

James, a. G. (2006). Online Marketing. California: John & sons.

Johnston. (2000). Strategies of Online Marketing. New York: Cambridge University Press.

Jullie. (2008). Effective Measures for Promoting Online Marketing. Illinios: University of Illinois Press.

Livingstone. (2012). How to Survive Competition Through Online Marketing. California: University of California Press.

Decision Made by Advertising Standards Board

Decision Made by Advertising Standards Board

An “Excuse” campaign was launched on August 2011 by the IPAF which was aimed at clearing the assumption that piracy was practiced by only few people in the society. However, this led to different views from the public. There were complaints that the ad portrayed racism against the Asians. Dan Wyllie, an Australian actor, played different people in the ad which were drawn from the Australian society. In a certain scene, the actor impersonates an Asian student which creates the thought that Asians have been racially discriminated.

I agree with the decision which was made by the Advertising Standards Board. It dismissed the claim that the campaign was racially discriminative to the Asians. The advertisement depicted an actor playing different roles of people from different social and ethnic backgrounds. It combined different characters that had the same idea about piracy and hence it was not discriminative towards the Indians.

The Board found the advertisement not to have violated the section 2 of the Advertiser Code of Ethics. The campaign did not talk only of the Asians but it addressed issues of different people who had the same inappropriate opinions about piracy. If the TV firm had intentions to racially discriminate the Asians, it would have begun within the firm itself. It has over 50000 Asians workers contributing 6.1b to the economy. It could not be concluded that the advertisement had ill intentions towards the Asians and yet the firm has so many Asian workers. Moreover, it was the first time the firm was experiencing such a case after a long period of service under the same management committee. If the advertisement was intended to discriminate the Asians, then the firm could not have made any efforts of apologizing. The advertisers though they were sure that they had not violated section 2 of the Advertiser Code of Ethics; they apologized for having offended some members of the public.

They did not stand with the decision of the board that they were innocent but they humbled themselves to solve their conflict with the public. They explained that the roles of an actor were not meant to be understood literally but to pass an intended message to the audience. Throughout the advertisement, the actor did not only refer to the Asians but also dressed other people of different social and ethnic backgrounds. To end the misunderstanding, they explained that the success of playing different roles could only be made possible through using different costumes. They used different make up, wardrobe, voice talent, and context and background scenes to make it possible and not to ridicule the Asians. The communication was light-hearted and aimed to pass the relevant information to the public. It had a comedic approach and hence it was not supposed to be taken seriously.

The board took time to evaluate the possibility of the advertisement having violated the Advertiser Code of Ethics and finally dismissed the claim. The ad was symbolic and did not target any section of the community nor race.

Work Cited

Mitchell. The Advertising Age Encyclopedia of Advertising. New York: Fitzroy Dearborn, 2003.

Mitchell. The Associated Press Guide to Internet Research and Reporting. Cambridge: MA: Pereus Publishing, 2001.

  

American Foreign Policy

Introduction

Since the end of Second World War, the American overseas policy has shifted from Isolationism to Interventionism. Before the Second World War, United States followed policies that prevented them from taking actions to interfere or change the political or social climate of other nations. These guiding principles defended their homeland borders and remained self-sufficient and unconcerned with the rest of the world. The policies changed to interventionism, which was founded on the principle of directly intervening in the affairs of other nations.

The change was because of the American’s perception of the most decent and had the proper way of living, governing and hence it would take measures to guide other nations towards the same direction. Initially, the nation was largely non-interventionist state, which preferred to focus on domestic affairs and pay attention to economic policies abroad.

Foreign policy Before the Second World War

United state had remained purely isolationist state whose foreign policy only allowed getting involved into the domestic matters of the state and guarding of her borders. It was not involved in outside matters which did not affect the nation directly. The early isolationists considered that staying out of issues which were not directly linked to the United States was the best way to ensure that they had enough resources and time to get involved in the domestic matters properly. They saw it that getting involved in the political issues of other nations to be wastage of equipment and risking the lifes of the American soldiers in matters which were not related to their nation. 

American Foreign policy after the second World War

The change occurred after the Cold World War when America was forced to storm into the war when Japanese pilots bombed the naval base at Pearl Harbor in December 1941. This changed the United States to an interventionist state. The idea of communism and the threat of Soviet Union influenced every foreign policy adopted by the U.S. A recovery program that was passed by Congress in 1948 sent relief funds into Western Europe and this created an influx of business in America.

America later worked towards freeing nations referred to as the third world. They started practicing a policy of self-determination, not seeking conquest or economic control but instead instilling governments that were friendly. The United States through the United Nations intervened into the war between the communist government of Korea and the Republic of Korea since they saw that the Republic of Korea needed help to avoid being overrun. This war finally settled in 1953 and the borers were restored exactly as they were before the war broke.

The conflict in Vietnam began in 1945 when the Vietminh declared Vietnam self-governing from France. The United States though had promised to accept the results of the elections, which were conducted in 1956 to unite the two separate nations under one democratically elected official later in 1956. They ignored it and provided weapons and training for the friend faction in Vietnam and sent CIA Operatives to destabilize the Vietminh clandestinely. During the 1950s, the US government had supported a change in control of Cuba when Fidel Castro led the supporting revolution. After Castro came into power, he severed all ties with the United States and became more open about his socialist leanings.

Later, the United States funded and trained troops that led a coup attempt to wrest control from Castro, which failed. John Blight said that the relation between Castro’s government and America was indirectly responsible for the alliance between Cuba and the USSR.

Economic and Social Reforms

In the nineteenth century, America was involved in various regional economies such as the manufacturing belt, the corning belt and the cotton belt. These economic regions developed in different constituencies and became represented by in congress by legislators who represented those constituencies. According to Sanders, U.S can be categorized into three types of regional economies which include core, diverse and periphery. The core region possesses economy which relies on industrial and manufacturing activities, the diverse region consists of wide range of economic activities which are not dependant on industrial activities or only the farming activities while the peripheral region has economy which is dependant on farming activities but it is peripheral from the core and diverse regions. Throughout the 19^th and the 20^th century there were several farmer and worker movements. Industrialization in U.S was rapid towards the last portion of the 19^th century and the positions of farmers declined. Legislation was enacted between 1909 and 1917 which involved state intervention in transportation, trade, taxation. Banking, antitrust, commodities markets, education, industrial employment and public enterprise.

Domestic Politics from 1877-1945

During this people the economy of the United States was in depression and the nation was at times of war. President Franklin Delano Roosevelt signed a new deal coalition which realigned the American politics as his domestic policies defined American Liberalism in the middle of 20^th century. The deal involved programs that were geared towards providing relief such as government jobs for the unemployed and recovery of the economic status to boost its growth and ensured reforms were done. This led to the rapid improvement of the economy from 1933 to 1937. A bipartisan coalition which was formed in 1937 prevented the president from passing any considerable legislation and abolished many relief programs when unemployment diminished towards the Second World War.

Politics

 President Harry S Truman (1945 to 1952) set before Congress his domino theory, which showed that if one pertinent nation fell into communism, it would drag all its neighbors. This led to the Truman Doctrine in 1947, which contributed to demolishment of communism (Patrick 111). Truman laid out is Point IV Program in 1949 which intended to give technical aid to third world nations and also aided formation of the North Atlantic Treaty Organization which intended  to counter the Soviet threat in Western Europe.

President Dwight D. Eisenhower was in power between 1952 and 1960. He propagated the interventionist policies where in 1953 he used the CIA to stage coups and overthrow the unfriendly governments in Iran and Guatemala. He helped to form the Southeast Asia Theory Organization after the fall of Vietnam from French control to Vietminh control in 1954. It became necessary to review the interventionism and look at different sides to debate. One of the issues was that getting involved in the foreign affairs would remove the United States’ ability to decide on the matters of whether to get involved and further devastate the early isolationists such as Hiram Johnson and Henry Cabot Lodge. They further argued that having the growing importance of International treaties, it was evident that enjoining foreign policies would lead The United States to wars which were not related to domestic circumstances. They did not see the need as to why US should waste money, equipment and risk human life in defending other nations. They insisted that America’s real goal was not the containment of communism but that the US had no right to get involved into the internal politics of foreign nations and hence that was not necessary in ensuring amicable trade agreements.

Domestic politics after World War II

The government of the United States has worked towards ensuring that all the citizens from all the states are treated fairly and that ensured that no state violates the rights of any of its citizens. The law has been enacted in ensuring that the due process of law is followed to avoid violation of some rights of the citizens even if they are held as suspects of criminal offences. It has also ensured that the borders are well demarcated and protected from external interference by other nations. There have been efforts to boost the economy of the country which in return has enabled creation of employment opportunities thus improving the living standards of the people. United States has been concerned in ensuring the welfare of its citizens even those visiting other nations by defending their rights and offering ready assistance in times of crises.

From the above history of the American Foreign policy, it is evident that the nation expanded their field of concern to help other nations which are still under developed and also it has been willing to protect the rights of their citizens and even other nations from being dictated by cruel governments. The nation has also worked towards ensuring the welfare of each of their citizens and provided enough security on her border

Work cited

Patrick Allitt, The Conservatives: Ideas and Personalities throughout American History, p. “before the 1950s there was no such thing as a conservative movement in the United States.”, Yale University Press, 2009. Print.      

SOURCES OF BUSINESS FINANCING

There are several funding schemes which are provided within the United States in order to support business organizations in their transactions. They provide capital for entrepreneurs to boost their businesses, and pay at a later date. This enables many businesses to become successful since the government helps them to stabilize their operations(Hadzima, 2010). Below are some of the ways through which business financing occurs;

a)      Small Business Administration Loans

Small Business Administration is an American Agency which ensures that the welfare of small businesses is maintained. This is achieved through supporting their growth and development. It guarantees loans to the small businesses through lending of businesses partners to them. It does not award loans to the entrepreneurs directly but it ensures that they get the amount which is necessary for facilitating their development.

Small Business Administration has entrusted the United States Bank with the responsibility of lending loans to entrepreneurs in order to promote their operations. It also recommends them to other financial institutions and economic development organizations in order to obtain mutual benefit from each other. It ensures that the loans awarded involve the least risks to the lenders. This enables them to avoid losses which may be incurred through offering losses to unfruitful entrepreneurs who may find it difficult to repay them.

Moreover, it ensures that the small businesses are awarded adequate amounts which would help them in promoting their transactions. This promotes the percentage of benefits which the entrepreneurs would be able to achieve through utilizing the availed funds. However, for an enterprise to qualify for being awarded the loans, it should be a profit-making organization. Its size is also considered to make sure that it meets the set requirements by the agency. Moreover, before awarding of loans, the financial standings of the organizations are investigated in order to determine whether they qualify for loans or not(Metrick, 2007).

Advantages of Small Business Administration Loans

i)                    Lower Down Payments

The Small Business Administration ensures that the loans are charged lower initial payback amounts in order to give the entrepreneurs amble time for generation of profits. Therefore, they are favorable to small businesses since they allow adequate time for the entrepreneurs to benefit from them without struggling to pay back. The down payments are affordable to many entrepreneurs hence ensuring that they benefit many of them.

ii)                  Awarding of High Amount

These loans are calculated to fund approximately ninety percent of business operations of a particular organization. This is adequate amount which can be used to promote operations of thesmall businesses hence making them to become successful. The Small Business Administration guarantees loans which amount up to $11.25 million for any qualified entrepreneur.

iii)                Longer Repayment Terms

The main motive of the Small Business Administration is not to generate profits from the transactions of the entrepreneurs. It focuses on helping them to develop their businesses. Therefore, they allow them to take up to a period of twenty five years before paying back the loans. This is aimed at ensuring that they do not interfere with the success of the entrepreneurs through making them to strain in repaying the loans. Moreover, it ensures that the entrepreneurs use the profits which they generate to repay the loans. This ensures that all business operations run smoothly.

Types of Small Business Administration Loans

The American federal agency guarantees loans of five types in order to ensure that they cover a wide range of business needs. These loans are offered by the United States Bank to the for-profit businesses. They range from $25 000 to $11.25 million depending on the size of the borrowing organization(Kieso, 2007). It provides loans for the following business operations;

i)                    Commercial Real Estate Transactions

This type of loans is awarded to the investors who are interested in conducting real estate purchases. They are provided with funds which would enable them to develop rental, or vocational homes. A certain percentage of the rent which is collected from the houses is used to repay the loans after the agreed period. They are useful to many investors since real estate purchases require high initial capital which becomes a challenge to many investors hence affecting the success of the businesses.

ii)                  Business Acquisition or Expansion

Some Small Business Entrepreneurs may be interested in purchasing other business enterprises, or expanding the operations of the ones which they already have. They require funds in order to accomplish their dreams. However, the profits which they generate from their daily transactions may not be adequate to facilitate the development plans. They require loans in order to accomplish their interests. Therefore, the Small Business Administration intervenes to guarantee loans for these entrepreneurs in order to support their projects.

iii)                Construction

This type of loans is awarded to the business persons who engage in construction projects. For instance, some constructors opt to apply for loans in order to purchase the required materials for construction before being paid by their employers. They enable construction projects to be completed within short periods since they make funds available for catering for all expenses incurred. They can be repaid after completion of the construction projects.

iv)                Working Capital

The Small Business Administration connects entrepreneurs with partners in order to provide funds for them to purchase the required equipment to support their businesses. Moreover, entrepreneurs require investing more capital into their businesses in order to maximize their profits. They may not have the funds hence making them to seek loans from the financial institutions. They can also obtain loans from the United States Bank which is the most preferred institution for offering Small Business Administration Loans.

v)                  Debt Repayment

Many Business enterprises in other nations are forced to terminate their operations due to bankruptcy. However, the United States government ensures that the selected federal agency takes care of the needs of small businesses in order to ensure that they do not run bankrupt. It guarantees loans which are aimed at enabling them to settle their debts with ease. This promotes healthy business practices since entrepreneurs are provided with favorable environment for conducting business without being disturbed by chaotic lenders(Berezin, 2005).

b)      Master Limited Partnerships

Master Limited Partnerships are traded publicly whereby they involve two types of partners. They involve limited partners which provide capital to the Master Limited Partnerships and in return get awarded income distributions. These distributions are provided quarterly hence providing funds to the people who invested their amount into the partnerships. Therefore, business organizations can choose to invest some of their profits in these partnerships in order to obtain benefits in return. The quarterly distributions are divided according to the percentage of investment hence the more an entrepreneur invests, the large the amount he receives in return.

They also involve general partners who are held liable for managing the practices of the Master Limited Partnerships. They provide any emergency requirements for ensuring welfare of the partnership and receive compensations in return. They have more managerial duties than the limited partners who concentrate in investing their financial resources only. The general partners represent the Master Limited Partnerships in most organizational levels and oversee its overall performance.    

However, for businesses to qualify being regarded as Master Limited Partnerships, they must prove to the American Government that approximately ninety percent of their income generation comes from natural resources, or real estate investments.They evade corporate income taxation from both the state and the federal levels because they are classified as partnerships.Entrepreneurs who operate under busy time schedules are advised to become limited partners in order to avoid bearing of extra managerial responsibilities.

Benefits of Master Limited Partnerships

i)        High Profits

Master Limited Partnerships result to high yields which make many entrepreneurs to get attracted to the investment. They mostly provide profits ranging between 6% and 7% of the total investment. This can be used as a way of funding businesses since the income obtained from the partnerships can be used to expand private businesses.

ii)                  Consistency in Awarding Distributions

These partnerships allow distributions to be made quarterly hence making it easy for the investors to predict the amount they are likely to receive. Therefore, it makes it possible for the entrepreneurs to plan for future business transactions depending on the amount they would get from the distributions. It also involves little unexpected expenses since the entrepreneurs are sure of the amount they would receive hence budgeting it effectively(Metrick, 2007).

iii)                Tax Exceptions

The Master Limited Partnerships protect the partners from being double-taxed. For the corporate investors, they are taxed both at corporate level, and at individual level. However, for the Master Limited Partners, tax is only levied on their distributions. Therefore, they are protected from paying the corporate taxes hence saving a lot of money. This amount can be used to boost their business operations. This initiative has encouraged many entrepreneurs within the United States to starting investing in Master Limited Partnerships.

iv)                Lower Capital Requirement

The Master Limited Partnerships require little capital in initiating development projects since they are not bound to paying a lot of taxes like the registered corporations. This enables them to grow rapidly since they find it easy engaging in development projects. They require little capital which can be obtained from their transactions hence eliminating the need for applying for business loans.

c)      New York City Tax Forgiveness Start-ups

The State Government of New York City introduced a tax forgiveness program in order to encourage entrepreneurs to invest more. This program was announced by Mayor Michael R. Bloomberg in 2012. According to a report which was compiled by the American Department of Labor (2012), the State government had helped more than 25,000 entrepreneurs to start and grow their business within a period of three years.

Rob Walsh, the Commissioner of New York Department of Small Business Services, said that between 2011 and 2012, the program had helped more than 1 200 families to secure jobs. This program involved allowing the new entrepreneurs to start their businesses and operate for a period of ten years without paying taxes.This motivated many potential entrepreneurs to start businesses hence improving the economy of the State.It was an effective way of financing businesses which was initiated by the State Government. It ensures that the entrepreneurs are given amble for generating enough profits which would be used to pay theirtaxes in future. Moreover, it enables businesses to have adequate period for learning the market needs in order to become successful before starting to pay taxes(Jaffe, 2008).

This program was devised after realization that most of the businesses in New York City became unsuccessful due to levying of high taxes by the State Government. Therefore, it was introduced in order to provide job opportunities for the New York Veterans. It helped many entrepreneurs to generate adequate income which would be used to cater for the business expenses and boost their transactions.

Differences among the three Ways of Financing Businesses

Business financing through the Small Business Administration Loans provides funds to entrepreneurs without having to force them to invest some of their capital in the program. They are helped by the federal agency to acquire loans from the trusted financial institutions. The agency gets involved in protecting both the welfare of the borrowers, and the lenders.

However, financing through Master Limited Partnerships requires the entrepreneurs to invest some of the capital in the organization in order to generate income in return. Unlike the Small Business Administration financing, the Master Limited Partnerships do not require lending of money. They allow the entrepreneurs to invest their capital in ownership of the partnerships in order to earn quarterly distributions in return. Therefore, each entrepreneur can easily predict the amount which he is likely to obtain from the partnership. However, in Small Business Administration Loans, profit generation is determined by the extent to which the loans were invested in transactions.

In Master Limited Partnerships, entrepreneurs are awarded opportunities to choose the kind of partners they want to become depending on their willingness to bear business responsibilities(Kieso, 2007). This differs from the other ways of business financing since entrepreneurs are entirely responsible for their fate in business. However, the New York City tax forgiveness start-ups programbenefitsthe new entrepreneurs mostly. It ensures that they are awarded amble time to learn the market patterns and generate adequate capital which will help them to cater for the expenses of their businesses. This method of business financing does not involve providing additional funds to the entrepreneurs. It focuses on providing favorable environment for the new entrepreneurs to succeed in business. This is achieved through reducing the burden of tax expenses for them for a period of ten years. It helps entrepreneurs to gain enough experience on how to survivecompetitions, and stabilize their businesses.

Difference betweenVenture Capitalists and Angel Investors

Venture Capitalists are people who provide funds for an already developed business in order to boost its practices, and acquire profits in return. They are only interested in making profits from the amount they provide. Therefore, they consider funding the promising businesses in order to ensure that they bear little risks(Ante, 2008).

On the other hand, Angel Investors are people who fund a business during its initial stage of development in order to help it to grow. They mostly get involved in the businesses which they have passion in in order monitor their progress keenly. Angel Investors take more risk than the Venture Capitalists. This is because they invest their resources in businesses which they do not know whether they will survive market competitions or not. Moreover, they do not provide financial resources only. They provide all the necessary resources which the businesses require in order to make their operations successful. They also take long periods before starting to enjoy profits from their investments since they have to wait until the businesses stabilize their operations.

However, the Venture Capitalists investigate the performance of a certain business in order to determine its likelihood of becoming successful before funding them.They are only committed to investing their financial resources in order to support business practices whereby they are assured of securing profits in return. They start investing after the businesses pass the stage of being funded by Angel Investors. Therefore, they are assured of starting to enjoy profits from their investments after short a period since the businesses would have already stabilized their practices.

The Angel Investors are bound to providing advice to the business managers in order to support its operations. Moreover, they are involved in decision making process of the crucial matters affecting the business(Berezin, 2005). They are also entitled to monitoring progress of the business in order to ensure that the proper amendments are made concerning its policy in order to promote its success.

However, the Venture Capitalists are only interested in the income generation of the targeted business. They do not provide any other help to the business apart from financial assistance. They ensure that they fully benefit from their investments without bearing a lot of risks. Therefore, they have fewer responsibilities compared to the Angel Investors who oversee the overall business progress.They are also not involved in most of the decision making processes except where they would be directly affected by the changes being anticipated for. They are majorly concerned with maximization of their profit generation rather than the overall practice of the business.

Conclusion

Businesses require adequate capital in order to support their practices and expand their transactions. In most cases, new businesses lack adequate capital for supporting their operations.They require financial support from other individuals and organizations. Therefore, they need to establish good relationships with the potential investors in order to acquire the required funds.

The Government of the United States has established mechanisms for taking care of the needs of the new entrepreneurs. They act as incentives which encourage more potential entrepreneurs to establish businesses. The State Government of the New York City has introduced a tax exemption program in order to enable the new entrepreneurs to reduce their expenses while conducting business.

This has enabled many entrepreneurs to establish business since they are allowed amble time for making enough profits before starting to pay taxes. The generated profits would be used to cater for the business expenses, and also boost their transactions.

Moreover, the Small Business Administration of the United States protects the welfare of entrepreneurs within the nation. It enables them to acquire partners, and link others with financial organizations from where they would obtain business loans. It also intervenes in order to ensure that both the lenders and borrowers benefit from each other mutually.This is achieved through recommending borrowers to the trusted lenders in order to ensure that they do not violate the terms of agreement after awarding of the loans. It also guarantees security of the lenders’ money through investigating the financial standing of the borrowers before allowing them to be awarded the loans.

Other entrepreneurs opt to engage in master limited partnerships in order to generate income from the amount theyinvest. They prefer this method of business financing in order to avoid paying corporate taxes which might become a setback towards their success. In this method, their commitment towards investing determines their success inincome generation. This makes them fully responsible for their fate in business.

Entrepreneurs opt to choose different alternatives of investing their resources in order to ensure maximization of their profits.Some prefer being Angel Investors in order to secure more profits after helping businesses to become successful while others choose to become Venture Capitalists. The Angel Investors are inclined to bearing a lot of risks which are associated with the progress of the businesses. However, Venture Capitalists are usually keen not to bear a lot of risks in their investments. They only target the promising businesses in order to lower their likelihood of incurring losses.

Therefore, other governments should emulate practices which would enable entrepreneurs within their territories to become successful. They should focus on ensuring that the new entrepreneurs are helped in coping with the market changes in order to stabilize their operations. They should also protect their rights in order to ensure that they do not get oppressed by chaotic lenders who might choose to violate the terms of agreement in awarding loans.

Work Cited

Ante, S. (2008). Creative Capital: Georges Doriot and the Birth of Venture Capital. Cambridge: Harvard Business School Press.

Berezin. (2005). Emotions and the Economy in Smelser. Princeton: Princeton University Press.

Hadzima, J. (2010). All Financing Sources Are Not Equal. Boston Business Journal, 34-67.

Jaffe, R. a. (2008). Corporate Finance. New York: McGraw-Hill Publishing.

Kieso, D. a. (2007). Intermediate Accounting. New York: John Wiley & Sons.

Loewen, J. (2008). Money Magnet: Attract Investors to Your Business. New York: John Wiley & Sons.

Metrick, a. A. (2007). Venture Capital and the Finance of Innovation. New York: John & Sons.