Did you know that Harvard used to prevent student entrepreneurs from operating businesses from their dorm rooms? It wasn’t until the year 2000 that the college Dean, Harry R. Lewis, proposed a change to school rules that would allow students to start businesses while living on campus. The change came about because of the emerging e-commerce revolution that allowed young people to start businesses on a shoestring and with little to no inventory.
Sources of Funding Beyond Family and Friends
Over time, some campus-based startups have grown to become major players in in the modern economy. Still, starting a business is tough. It requires a lot of time, know-how, and perhaps most importantly, access to funds. While many young entrepreneurs may look to parents, angel investors, and even crowd-funding for capital, the reality is that traditional lenders are an important resource for both entrepreneurs and established businesses. Traditional banks are often better able to provide large amounts of money at competitive interest rates than nontraditional sources.
A Business Credit Line – How to Establish One
Dun & Bradstreet wants to see student entrepreneurs succeed. That’s why it provides qualifying student businesses a free year-long membership in its Small Business Starter service. The Small Business Starter helps small businesses establish a business credit file. Like a personal credit score, a business credit file and DUNS number helps businesses to work with lenders and to get the credit line these businesses need to operate and expand.
A Strong Credit Profile – Why It Is Important
In addition, it is also true that many businesses, as well as government agencies, rely on business credit files and DUNS scores when deciding whether to work with the company either as a partner or as a supplier. Having a strong credit profile and healthy business credit score can make the difference between a student startup that exceeds and one that fizzles due to lack of money, networks, and customers.
Student entrepreneurs who are interested in starting their business credit file should visit the Dun & Bradstreet website to learn more.