Financial challenges faced by young entrepreneurs
Vilner (2018) point out some of the problems which young entrepreneurs often face as they start-up. These include the lack of sufficient personal capital, fewer contacts or networks, and unattractive credit history. Vilner (2018) claims that young entrepreneurs often lack savings as most are at their early earning days and are dealing with student loans. As a result, these entrepreneurs lack emergency funding to cushion them during a crisis in their start-ups. Concerning fewer contacts or networks, this author argues that unlike their older counterparts with established lists of contacts, young entrepreneurs lack well-placed contacts or connections who can provide them with the much-needed business help in terms of funding. As a result, entrepreneurs cannot promote their services or products due to the absence of the necessary support from well-respected business people. The lack of contacts, in turn, impacts the entrepreneurs’ profits. Lastly, the author opines that young entrepreneurs are usually affected adversely by poor or unattractive credit history. According to Vilner (2018), inexperienced entrepreneurs frequently make financial mistakes on the credit reports, which make loan and credit card firms shy off from offering them financing.
How to overcome the challenges
Young entrepreneurs can solve the problem of funding by looking for like-minded business partners. The partners can help bring in funds and expertise to make the business successful. Additionally, young entrepreneurs should consider taking credit cards meant for fair credit borrowers, which is suitable for people with a short credit history. Lastly, entrepreneurs can use social media to reach potential clients and investors through the use of ads. This can lead interested investors and clients to the start-ups’ website (Lynn, 2016).