CARTOONS BY CHRIS BRITT

– INTRODUCTION –
As an entrepreneur, the old adage that “it takes money to make money” rings just
as true today as it did when J.P. Morgan and Andrew Carnegie were building their first
empires. Whether it’s
bridge funding to get
you through the slow
times or startup capital
to get your latest idea
off the ground, money,
or the lack of it, can
be a make-or-break
proposition for any
business.
This fairly common
search for capital has
even become popular
fodder for reality TV.
Millions of people
watch Shark Tank each
week to see hopeful
A banker is a person who is willing to make a loan if
you present sufficient evidence to show that you don’t need it.
entrepreneurs pitch their ideas to the sharks. It definitely makes for great TV, but it is
hardly a viable way to get funding in the real world.
The sad truth is, since the 1970s, there has been a steady decline in small business
access to capital along with a corresponding per capita decline in job creation. Today,
one in every three small businesses report that they were actively seeking capital and in a
recent survey 80% found the process “very” or “somewhat” difficult. When asked what the
biggest obstacle was to starting their own company, 36% of aspiring entrepreneurs said
financing, followed closely by not knowing where to begin (34.7%).
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