Selecting The Appropriate Kind Of Finance For A New Venture

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Figure 4: Selecting the Appropriate Sort of Finance for a New Venture Source: Paul Burns, 2014 3.4 Human Capital It is universally accepted that human capital is of vital importance in any discipline of business. Knowledge and experience can be an invaluable source of business idea and they relate to the knowledge motives for internationalization. Education and training can alert people to the problems and deliver the skills to overcome those (Paul Burns, 2014). That is why the founder of Lush recommend that entrepreneurs should constantly reading business books and meeting people (Mark Constantine, 2009). Actually, human capital is related to financial capital in the means that education and track record increase the credibility with financial backers. Based on my personal experience, investing in human capital will help new ventures to avoid many real foreseeable business problems. 3.5 Social Capital Social capital is the ability to get on with people. It is built on relationships with customers, employees and suppliers and this is the core of entrepreneurial approach to doing business (Paul Burns, 2014). Also, it is the personal touch that distinguishes entrepreneurs from managers of large firms. Networks can, therefore, yield up partners or methods of bootstrapping resources. It is connected to the previous social ties driver for internationalization. In order to face the challenges of internationalization, entrepreneurs should develop the capability to manage the
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