Enterprise Finance Essay Example | Topics and Well Written Essays - 1500 words - 1

Enterprise Finance - Essay Example The basic characterization of these sources can be done on two levels; internal and external (Biz/ed 2007). Previously, internal sources were more widely available to businesses, and they depended heavily on this method of financing. However, now external sources are also being greatly availed. Each method has several more characterizations, and each sub-source has its own advantages and disadvantages. The discussion that follows will cite as examples several of these sources for an analysis of the different methods of business finance. Internal Sources: as the name implies, this method of financing depends upon the business itself, and no external help is involved. Economic stability ha to be generated from within the establishment. Bushiness that do not have resources, funds or the means to invest or implore outside means of finance see it as the ideal way of establishing and developing their businesses. It is easier, hassle free and can be done on a more customized level, as the only party involved is the business management itself. However, this method involves a greater time period for the results to surface, and the management has to rely on its components for co-operation and patience if the efforts have top be dealt with successfully. Furthermore, mostly relatively small business make use of this approach of financing, as the greater the establishment, the greater the funds required for the maintenance and development of the business, and these increased funds can seldom be catered for internally. Also, all the loses of incurred during this process of financing would have to be born by the