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A small business is being started with limited funds. What should the entrepreneur do first?

Answer and explanation

Correct answer: Prepare a budget by prioritising essential expenses

With limited funds, the entrepreneur should list expected costs, separate essential from non-essential spending, estimate available money, and prepare a realistic budget. This reduces waste and helps decide whether additional finance is actually needed. Unplanned borrowing, excessive decoration, or skipping market research can increase risk and weaken the venture.

Related tags

BudgetLimited-CapitalFinancial-PlanningIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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