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Chapter 1: Introduction

Capital is the most essential aspect in starting and maintaining a business. This is what

potential businesses use in a acquiring their equipment, in the purchase of inventory and is used for

paying the expenses of the business. The business' capital is different from the own money of the

owner. Owners can vary from a sole-proprietorship or a single business owner, this means that you

are the only one who gets the profit, but you are also the only one that is paying for your business'

debts or expenses. For starters, it is challenging to accumulate enough capital, students of business

According to Avila (2019), you can start your own business with a small amount of capital.

Surely, in the long run you’ll need sufficient amount of capital to sustain your business operations.

But, when just starting out a business you may start small. Also, Avila (2019) said that you may start

as small as you like. And even start with little as no capital. You may accumulate funds without the

use of your own money.

This research's goal is to provide fellow businessmen with ways that they can accumulate

their own startup capital. So that they can get their business and started. Common are some fund

raising activities which can provide a sufficient amount. Another, is just straight borrowing from your

parents or relatives. A sole proprietor will not have a partner to help him/her with the expenses and

funding. So a single business owner must be able to think of ways in getting funds on his own. That’s

what this research is for, to help them.

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1.1 Statement of the Problem

Students of business are often faced with the problem of not having enough money to practice

what they learn in schools. This study's goal is to present effective ways in accumulating money as start-

up capital in putting up a small business. Some ways of gaining capital to start a it business are making

raffles, putting up a Dedication board in schools, daily allowance savings, and family financial help. These

simple strategies can allow students to accomplish their goal on gaining capital for a small-business.

1. Starting a Raffle

1.1 Materials Needed

1.2 Profit/Loss from the Event

2. Dedication board

2.1 Materials Needed

2.2 Profit/Loss from the Event

3. Daily Allowance Savings

4. Family Financial Help

1.2 Purpose of the Study

As students we are a type of person that is on a tight budget as we go through school projects and

everyday expenses. We proposed a research that could help students to gain a capital for a potential

business for their daily expenses and help them financially. A small business for us students to practice

our skills and entrepreneurship.

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This research's purpose is to provide aspiring businessmen who do not have enough knowledge

on ways they can accumulate enough money to start their own business with effective means that can

help them start their own business.

1.3 Definition of Terms

 Capital - a stock of accumulated goods especially at a specified time and in contrast to income

received during a specified period

 Fund - a sum of money or other resources whose principal or interest is set apart for a specific

objective

 Plan - to devise or project the realization or achievement of

 Savings - the excess of income over consumption expenditures

 Raffle – a means of raising money by selling numbered tickets, one or some of which are

subsequently drawn at random, the holder or holders of such tickets winning a prize

 Profit – a financial gain, especially the difference between the amount earned and the amount

spent in buying, operating, or producing something

 Loss – an amount of money lost by a business or organization

 Dedication Board – a board or sign on which messages or dedications are displayed

 Allowance - money that you are given regularly, especially to pay for a particular thing

 Finance - the money that a person or company has

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Chapter 2: Review of Related Literature

2.1 Local Literature

2.2 Foreign Literature

2.2.1 Small businesses

Tracy (2019) says, that in starting a small business we must always first plan. Because he said that

if you fail to plan, you also plan to fail. He is saying that If you don’t plan first before executing is you are

leading yourself and your business in to a failure. Write down your goals. By seeing your goals on paper,

you will crystallize the things you want to do and breathe life into the idea. Tracy (2019) also exclaims,

that businessmen must never give up and just continuously pursue the goal and you’ll eventually reach it.

How much you work for it and how far you are willing to go towards something is a sign of how much you

truly want it.

Researchers defined a small business as a firm with less than 500 employees. Other descriptions

of firm size categories include very large (more than 500 employees), large (200-500 employees), medium

(50-200 employees), small (less than 50) and micro (less than 10 employees), (Gandy, 2015).

In the United States, Small businesses are the source of most job creations (SBA, 2014).

Furthermore, they have accounted for approximately two-thirds of new net private sector jobs over the

past 2 decades (Chow & Dunkelberg, 2011).

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Small business owners must realize the necessity of continuing education in their plans to success.

Even though your business is blooming in the current timeline you’re in that doesn’t mean you are safe

and will be immune to failing. Everyday there will be new trends, opportunities and threats. So a business

owner must be vigilant in these matters. Owners must aim in learning something new everyday, because

no one knows what could come one day. Always be prepared for every circumstances, and act on it as

soon as you can (Gandy, 2015).

2.2.2 Challenges faced by small business owners

Small business owners face numerous challenges on starting up a business and on the road to success. In

particular, with regard to access to capital. Now, there are so many challenges faced by new business

owners such as developing vision and ideas,, finding the right location, finding the right employees, finding

good customers, overcoming competition, unforeseen challenges and expenses, keeping up with

industrial changes and trends, but most importantly, raising capital (Kanchana, 2013).. In order to start up

an efficient small business, the entrepreneur or small business owner must find effective ways on gaining

capital.

2.2.3 Daily Allowance Savings

According to Sabri and MacDonald (2010), students who have a high financial knowledge promote good

financial management. A student’s ability to manage financial resources is very important for everyday

life activities. These students will be able to make more better decision in managing their financial

resources, their daily allowances, thus leading to having extra money that can be used for other things

such as starting a business (Hilgerth and Hogarth, 2003)

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2.2.4 Family Financial Help

In particular, support from families is critical to the start-up persistence of entrepreneurs (Kim et al.,

2013). Family social and financial support is particularly critical for young aspiring business owners or

entrepreneurs which are the students. Students are different from more experienced entrepreneurs

(Sarasvathy, 1998). Students have little, if any, business knowledge, social relations, and little experience

in how to make sense of starting up a business (Nielsen & Lassen, 2012). Most importantly, students lack

the necessary capital to start a business (Evans & Jovanovic, 1989). Students, in particular, often reside in

their family's homes and are thus part of their parents' households. The lack of financial capital lead young

entrepreneurs to seek support from their families in order to start a new business.
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2.3 Conceptual Framework

EFFECTIVE MEANS IN GAINING A SMALL CAPITAL FOR

A SMALL BUSINESS

FUND RAISING

FRIENDS AND FAMILY

SOLICITATION

GARAGE SALE

POCKET MONEY
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Chapter 3: Research Methodology

3.1 Research Paradigm

3.2 Hypothesis

3.3 Scope and Delimitation

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Bibliography

Avila, T. (2019). How to start a business when you have literally no money. Retrieved from

https://www.girlboss.com/work/start-a-business-without-money

Chow, M. J. & Dunkelberg W. C. (2011). The small business sector in recent recoveries. Retrieved from

https://econpapers.repec.org/article/palbuseco/v_3a46_3ay_3a2011_3ai_3a4_3ap_3a214-

228.htm

Gandy, D. L. (2015). Small business strategies for company profitability and sustainability. Retrieved from

https://pdfs.semanticscholar.org/331f/7bdcc27a981750fae8885eeaf12d8691499b.pdf

Hilgerth, M. A. & Hogarth, J. M. (2003). Household financial management: the connection between

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https://econpapers.repec.org/article/fipfedgrb/y_3a2003_3ai_3ajul_3ap_3a309-

322_3an_3av.89no.7.htm

Sabri, M. F. & MacDonald, M. (2010). Savings behavior and financial problems among college students.

Retrieved from https://cscanada.net

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https://www.entrepreneur.com/topic/starting-a-business