What Are the Risks of Overcoming Financial Constraints?
While it is essential to address financial constraints, entrepreneurs should be aware of the risks involved:
Debt Burden: Taking on too much debt can lead to significant financial strain and repayment challenges. Equity Dilution: Raising funds through equity financing can dilute the ownership stake of the original founders. Operational Pressure: Securing external funds often comes with expectations for rapid growth and profitability, which can add pressure on the business operations.