Article Analysis Essay on New Players in Entrepreneurial Finance and Why They Are There

Outline of The Article

The article "New players in entrepreneurial finance and why they are there" by Block, Colombo, Cumming, and Vismara (2018) is an article that provides various shreds data about financing instruments, entrepreneurial finance, and crowdfunding. In its abstract, it gives one of the significant intervention relevant to financial planning and budgeting. The lands of the SME financing and the entrepreneurial finance is developing with each passing day and has dramatically changed through a period within the last few years. With new players in the markets playing the financing function, the activities are changing and developing and rendering a significant to most of the events occurring in varying contexts (Block et al., 2018).

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Since the new players may comprise of the young innovative firms that are critical in the modern knowledge-based economies, they deliver a relevant source for productivity growth as well as providing radical innovations. However, the new player in the entrepreneurial finance often suffers from financial problems which provide a limit to their growth and development thus threatening their survival and existence. Similarly, the financial constraints for the new players (young innovative firms) deliver a lack of internal collateral and cash flows, agency problems, and also asymmetric information which is a significant challenge for raising funds (Brown & Earle, 2017). The article helps in addressing and investigating the occurrences of how young corporates can acquire sufficient innovation, capital, and internalization.

Additionally, the article provides an introduction and description of the new players on the market along with other occurrences. For example, it compares them along with the four financing dimensions including investment goal, investment approach, investment target, and debt or equity (Hall & Lerner, 2010). After the consideration and comparison of the emerging players, it discusses the factors explaining their emergence and actualization. For instance, the group of these factors is factored into the involvements of the demand and supply side. Although the article focuses on the sole goal of elaborating the happenings behind the emergence of new players in the financial arena, it also delivers an overview of the content of the occurrence. In summary, the entire article defines the editorials researchers and orientation concerning the recent advancements in the entrepreneurial financing and deliver avenue for more research and information (Block et al., 2018).

How It Relates to Public Finance

In the current studies relating to this week's chapters, the article refers to them in distinct ways. For instance, within the contexts of (Chapter eleven: Financing the business), the article refers to it through the activities it covers. The chapter delivers a specific focus on the two classes of financing (debt and equity), which relate to this article following the events of the new players. The report provides an in-depth as it compares the new players with the four financing dimensions. On the other hand, the article relates to (chapter twelve: business planning and budget) in various ways as vested in the financing and financial operations. In the specified public finance chapter, it covers the different business planning areas and budget which relate to this article following the activities of the new player or rather the young innovations. To deliver a successful young innovations business planning and budget is critical. The report also includes the different challenges the changes encountered in the development stages (Block et al., 2018). Thus, provide diverse ways on how this article relates to public finance.

Observations

With the venture of new players in the entrepreneurial finance, they have delivered the availability of new investment goals and introduced new investment approaches, business models, and valuation methods. Moreover, I have acquired knowledge of the various changes the new players have delivered into the public finance. The emergence of the new player has not only offered specific changes regarding innovation but has also advocated the growth and development of the entire entrepreneurial investment as a whole.

References

Block, J. H., Colombo, M. G., Cumming, D. J., & Vismara, S. (2018). New players in entrepreneurial finance and why they are there. Small Business Economics, 50(2), 239-250.

Brown, J. D., & Earle, J. S. (2017). Finance and growth at the firm level: evidence from SBA loans. The Journal of Finance, 72(3), 1039-1080.

Hall, B. H., & Lerner, J. (2010). The financing of R&D and innovation. Handbook of Economics of Innovation (Vol. 1, pp. 609-639). North-Holland.