Question

According to Census Bureau and Federal Reserve surveys, about 50 percent of all new businesses begin with less than ____ in total capital. Group of answer choices $100,000 $1,000 $30,000 $25,000 $50,000

Answer 1

Answer:

$30,000

Explanation:

According to Census Bureau and Federal Reserve surveys, about 50% of all new businesses begin with less than $30,000 in total capital to start small businesses though the average capital to start small businesses is $80,000. The reason is not far fetched and one of it is that small businesses have limited opportunities to get capital to start a business. Small business capital is usually from the owner's personal savings or from family members or friends as little help is rendered by the lending institutions. Small businesses majorly need financing to expand their businesses. The inability of small businesses to get good capital for their businesses causing difficulties in growing small businesses.