Start-up Financing - Essay Example

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Start-up Financing

Formation of Wal-Mart Sam Walton, the founder of Wal-Mart Stores had served as a Captain in the US Army Intelligence Corps from 1942 to 1945. After serving the nation for years, Sam Walton retired from his services and decided to open a store that contained multiple products. Thus, he gained a few experiences regarding the retail business when he operated his own variety store in Newport, Ark. With a loan of USD 20,000 from his father-in-law and a savings of USD 5,000 from his employment at the army, he decided to open the first milestone, Walton’s Five and Dime in Bentonville, Ark in the year 1951 (The Associated Newspapers of Ceylon Ltd., 2012). Thereafter, Sam Walton did not have to look back and exactly after 11 years, established the first Wal-Mart store in 1962. The popularity of the company was beyond the founder’s expectations as it started to expand its stores rapidly. Though the company started as a sole proprietorship company, later in the year 1971, it was being financed by public through stock offerings. The same year saw the company’s first 100 per cent sale of stocks offered at a market price of USD 47 (Walmart Corporate, 2012). ...Show more

Summary

Start-up Financing Introduction One of the most common problems faced by ventures in starting up a business is the source of funding. New ventures need considerable start-up capital to initiate and to operate business operations successfully. Therefore, a large number of ventures in their initial stages search for the help of financing resources for funding their business (Korosteleva & Mickiewic, 2008)…
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