Entrepreneurship Assignment Example | Topics and Well Written Essays - 2000 words - 1

Entrepreneurship - Assignment Example Though they constitute a major element of the countries growth, very little was done for their growth and development in the past. It is a common misconception that unemployed people call themselves entrepreneurs. But, in reality they provide several basic services necessary for huge corporate companies as well as the local public. The government has started to realize their importance only in the recent days. Government encourages the small and medium level entrepreneurs to get rated because they believe the sole aim of encouraging entrepreneurship is job creation and economic growth. Several steps to improve them are taken from offering them easy loans to giving them subsidies to improve their infrastructure. The major obstacle faced by the SMEs are their inability to garner funds when they are in dire need. Getting a good credit rating will help them demand the finance they require from various agencies with confidence. But, there is little awareness regarding the process and its importance among the entrepreneurs. Credit rating is basically a system which statistically determines a person or businesses ability to pay back the money borrowed. The credit ratings are offered by three financial bureaus Equifax, TransUnion and Experian in the U.S. Their rating for each business might differ slightly. An American citizen is entitled to get a free credit report once in every 12 month from these bureaus. But, they should pay a minimal fee of $7.95 to get a detailed credit rating. An alternate way is to use software like FICO to get the credit rating. People applying for the report will usually get it within 30 to 45 days of application. They bureau takes into account certain features like credit repayment history, current debts and time taken to pay back the previous credits, the frequency of getting credits and the credit type to create the credit