Loc: One of the Mexicos
Originally Posted By: pondering_it_all
Why the assumption that it would be high risk?
Because of the extremely high failure for small business startups. If a business has the capital and the people to get registered with the SEC, then the failure rate is lower..
Do have substantiation for that claim?
Undercapitalization is a common reason for startup failure. Maybe that has something to do with it being difficult to access capital? Debt is another reason for startup failure - and often taking on debt is the only option for raising capital.
You can’t solve a problem without first understanding what the problem is.