An option for acquiring equity capital is for the entrepreneur to take on partner(s)however, it is important that (s)he consider the impact of giving up some personal control over operations and sharing profits with others.

Question

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Taking on a partner means sharing ownership and decision-making power with someone else, which results in the loss of some personal control over operations. Additionally, partners are entitled to a portion of the business's profits, which means that the entrepreneur will have to share those profits with others. Therefore, it is important for entrepreneurs to carefully consider the pros and cons of taking on partners before making a decision.

An Option for Acquiring Equity Capital Is for the Entrepreneur