ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -According to the U.S. Small Business Administration, most microbusinesses cost around $3, 000 to start, while most home-based franchises cost $2, 000 to $5, 000. While every type of business has its own financing needs, experts have some tips to help you figure out how much cash you’ll require.

Detailed explanation-2: -What Is Startup Capital? The term startup capital refers to the money raised by a new company in order to meet its initial costs. Entrepreneurs who want to raise startup capital have to create a solid business plan or build a prototype in order to sell the idea.

Detailed explanation-3: -Startup capital includes funds for any expenses to be incurred before launching a company, and capital required after launch to run the company until it reaches positive cash flow–when revenues are higher than expenses.