“Before establishing a micro or small business, one of the owners’ biggest challenges

 

“Before establishing a micro or small business, one of the owners’ biggest challenges is to identify the
right source of capital to finance the entrepreneurial venture”.
You are required to address the below question(s) by evaluating the business you intend
to launch in the UAE through your SLE course.
1. Analyze the different sources of finance/funding for SMEs and entrepreneurs.
Subsequently compare their advantages and disadvantages. (CLO3 – 5 Marks)
2. Compare the various sources of capital available in the UAE in order to propose
the one(s) that best fit to your project. (CLO4 – 5 Marks)

 

Sample Solution

Starting a small or micro business can be a daunting task, particularly when it comes to identifying the right source of capital to finance the venture. Fortunately, there are many sources of funding available for SMEs and entrepreneurs in the United Arab Emirates (UAE). These include traditional financing options such as bank loans and credit cards, as well as newer sources like crowdfunding and angel investors. Each option has its own advantages and disadvantages which should be carefully considered when selecting the best fit for an individual business plan.

Bank loans are one of the most common forms of financing for businesses in the UAE. They typically offer competitive interest rates with fixed payment plans but may require collateral or personal guarantees from owners (Dubai Chamber 2019). Credit cards provide another type of financing but come with higher interest rates more stringent eligibility requirements (Lopez 2016). In addition to these traditional methods, startups can also look into alternative funding solutions such as crowdfunding platforms which enable founders to raise money from large groups of people online (Atkinson 2017) or angel investors who provide private equity investments for high-potential companies (Kazim 2018).

Each method carries its own advantages and disadvantages that must be weighed before choosing one. Bank loans tend to have lower interest rates while offering more predictable payments over longer terms; however they often require substantial evidence proving a company’s creditworthiness which not all startups will have access to. Credit cards usually carry higher interest rates with shorter repayment periods; however they may offer rewards programs that help offset some costs depending on usage levels.

Crowdfunding provides companies with fast access to capital without having to prove their financial stability beforehand; however fees associated with using sites like Kickstarter or Indiegogo can add up quickly so it is important to factor this into any calculations about potential returns. Angel investors bring expertise and experience along with their investments but generally take larger ownership stakes in return meaning owners have less control over decision making within their own company.

Worldwide regulation is characterized as a bunch of rules commonly viewed as restricting with regards to the connections between countries. The principal distinction between global regulation and homegrown regulation is the way that worldwide regulation isn’t typically so worried about individual privileges, yet rather the connection between countries. Where homegrown regulations oversee the way of behaving of people inside the states, global regulation administers the way of behaving of the actual states. Global regulation is shaped through the purposes of settlements, shows, accords and arrangements as opposed to depending on a solitary administrative body. Today in any case, there have been a development in worldwide regulation to incorporate standards that oversee the privileges of people too. This is known as Worldwide Confidential Regulation. Global confidential regulation typically manages individual contentions, for example, marriage and agreements debates, where theres either a decision or struggle of purview. The principles overseeing the lead of states falls under the domain of Public Global Regulation. Supranational regulations are provincial worldwide regulations, and may consider public regulations unimportant in the event that it conflicts with the deal made by the supranational overall set of laws.

Worldwide regulations are framed through various ways. The first are worldwide shows, otherwise called arrangements. This is basically a composed understanding between at least two nations in regards to an acknowledged norm on any global issue of contention. Being a party of a settlement as a rule implies that states reserve the privilege to recognize the what has been settled upon and to whom commitments are owed to. Deals between just two states are referred to as respective, though a settlement between various countries are known as multilateral. Deals which are broadly acknowledged by most nations are called all inclusive settlements.

Customs additionally direct worldwide regulation. At first, standard worldwide regulation isn’t recorded in any capacity. All things being equal, this means worldwide regulation can now and again be shaped through the direct and practices of nations. Standard regulations are in steady improvement as lead changes through time contingent upon a large number of situations. To recognize standard regulations, there are a couple of elements to consider. The first is the consistency where the practices have happened, as well as how frequently is polished. The second is the consensus of the training being referred to and for what length it has been rehearsed. The last component while attempting to consider whether a traditions is global regulation is the interests wherein the rehearsing parties who are extraordinarily impacted have in that specific practice.

At the point when homegrown regulation contentions with worldwide regulation, it is vital to know the two fundamental hypotheses which make sense of the connection between these two regulations. The primary hypothesis is monism. Monism sees worldwide regulation and homegrown regulation in a similar field. Basically, this implies that worldwide regulation applies straightforwardly towards homegrown regulations as well as the other way around. Albeit this hypothesis doesn’t make sense of which regulation outweighs everything else when struggle emerges, its central matter is that global regulation is quickly enforceable inside a countries homegrown framework.

The dualist hypothesis expresses that worldwide regulation and homegrown regulation are two separate l

This question has been answered.

Get Answer
WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!
👋 Hi, Welcome to Compliant Papers.