Financing Options and Technology’s Impact on Business
Business Financing Options
Business Financing: The goal of this essay is to show the advantages and disadvantages of various methods of financing. It includes three ways: credits, crowdfunding, and business angels, which are presented one by one.
Bank Credits
The most famous method of financing is bank credits. Banks may grant a credit, but most of the time, it includes a high price to pay when it comes time to pay back. The latest values actualized on the Bank of Spain’s web page are from 2016, when the Annual Percentage Rate rounded to 2.3%.
Crowdfunding
Another way to finance, which is currently becoming famous, is crowdfunding. It uses a collective platform on the Internet where its users decide if the proposed project is interesting or not. If they decide that it is worthy, they contribute with an amount of money they wish to provide because they really like the project and want it to become true. An advantage of crowdfunding is the opportunity to show the project and get feedback on it. Moreover, probably taxes are lower than other entities or even non-existent. Nevertheless, it might happen that the sum needed to start the project up is not totally obtained by crowdfunding.
Business Angels
Also, a great method to finance a project could be Business Angels. Business Angels are people whose job is detecting good projects and investing in these. These people finance the project with their own money, so they expect that it produces great benefits, and that is the problematic face of this method, that entrepreneurs cannot tell how their project will come out. In 2016, only 8% of projects were accepted by these people. However, Business Angels are experienced people that will give the project useful knowledge to improve the project and get its best.
Conclusion on Financing
After analyzing bank’s credits, crowdfunding, and business angels, the conclusion is that all these methods of financing a business have their positive and negative aspects, so the entrepreneurs are who will decide which outweigh the others and which is the most appropriate method.
Business and New Technologies
This text will discuss business and new technologies. In this case, it will analyze the impact of the growth of technology in business.
The Age of Technology
As we all know, we have been living in the age of technology for the last two decades. Technologies have developed greatly, and this has had an impact on daily lives and in working life. Today, almost all of it is made of form virtual or through a device. All of these changes also have changing market and the way of working.
Impact of Technology on Businesses
Thanks to the growth of technologies, businesses have experienced changes related to their operations. Currently, bosses can be in constant contact with an employee via e-mail or instant messaging and use programs to manage inventory or track funds, allowing them to work remotely and facilitating everyday tasks. The implementation of the technologies in the business has some advantages and disadvantages.
Advantages of Technology in Business
- Technologies save money, for example, by transport.
- The good use of technology allows to save time because there are programs that increase productivity.
- It also increases the speed of communication, so now instead of using traditional mail, businesses use electronic mail.
Disadvantages of Technology in Business
- There are also disadvantages, such as dependency on technology. If there is a virtual shutdown, the system comes down, and nobody can work.
- Another inconvenient, and perhaps the most important, is the costs of having up-to-date technology (computers, programs…).
Conclusion on Technology
In conclusion, and after analyzing the advantages and disadvantages, it can be asserted that if money is available, it is a good investment since it can bring many advantages. But it is recommended companies not only work virtually because if there is a failure, it may not be possible to work, and it will lose time and productivity.