The current philanthropic funds of the world even combined with the aid or development of states, sums up into a portion of billions of dollars. Currently, the exact costs necessary to solve the global financial issues in the world is estimated to range somewhere in trillions of Dollars. This is inclusive of an estimated annual funding gap of $2.5 trillion necessary to attain the Sustainable Development Objectives/Goals in the third world countries. In this precept, there is an urgent need for the private capital to aid addressing the pressing challenges and help in filling the gap. Private capital can only be attracted if innovative financial solutions are pursued. This helps in mobilising the private sector inefficient and more ways for projects to establish a more inclusive and resilient world.
Strengths and Weakness of the Financial Strategy and Capital Structure
From a business perspective, a capital structure refers to a business finance term, which gives detailed information regarding a company’s operating dependency or capital that is obtained through equity and debt. Debts normally include credits and loans that need future repayments and with interest. However, equity simply means selling a partial interest that a company generates to investors through a stock. As a distinction, while equity financing does not involve any direct jurisdiction for funds’ repayment, debt financing does. In this case, equity investors would only be partners and part-owners and, therefore, able to exercise the privilege of control.

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Merits and Demerits
As a merit, financial strategies offer guidelines to the capital structures, and this helps in striking a balance between return and risks and thus, maximising the stock prices while simultaneously minimising the capital costs. There are many disadvantages of capital structures and financial strategies. One of such is the mandatory giving of control of the business or entity to investors. This is dangerous as the investors may have varied ideas regarding a particular issue and this can pose significant challenges to the entrepreneur. Nonetheless, some equity sales such as Initial Public Offer (IPO) can be expensive and complex to administer.

Opportunities and Threats in the Structural Break in Demand and Capital
In the current digital era, the essence of formulating a strategy is directly proportional to the completion in the market despite viewing it too pessimistically and narrowly. While investors at times have an encounter with executives raising complains to the contrary, competition in an industry is neither a bad luck nor a coincidence.

Nonetheless, in the fight for market share, completion is not only manifested in other players but all business entities. At this level, the various challenges that affect a business are vast and among them is competition as mentioned above. In business, completion is rooted in a company’s competitive forces and underlying economics that transverses beyond established combatants in an organisation. Potential entrants, customers, and substitute products are all business competitors that may be less or more active or prominent regarding an industry.

Analysing the Findings
Through financial innovations, the world is currently at the helm of working towards attaining targets necessary to address global challenges. The Sustainable Development Goals as mentioned previously and the Paris Climate Agreement (PCA) are some of the global issues that need implementations regarding costs despite being astronomical. In the coming ten years, there is an estimation by the United Nations (UN) that the PCA will cost above $12 trillion in the coming 25 years while the SDG’s estimated cost will be around $50 trillion.

The question that leaves many eye browses raised is how the world could afford that. One does not need to be a rocket scientist to understand that a lasting solution can start from leveraging the mechanisms of innovative finance that is capable of tapping into the over $200 trillion in the investments of private capital in the financial markets. This can be made possible through ensuring that the capital is effectively deployed in regard to development.

Private Enterprise Strategy
Under this section, the strategy will be discussed based on the mission, goals, and the corporate model strategy essential for development. The mission of the environmental financing is to help improve and fund strategies that help in environmental-related issues. This will be achieved through shaping an innovative and robust financial service through improved access to higher quality practices and products. As a goal and a merit, finance is considered a source of ‘goodness’ in people’s lives especially when it comes to financing. Serving the consumer needs is more profitable to any entity. The vision is a good environmental condition to the world where individuals daily activities are not influenced by hardships related to the environment. This helps improve opportunities and resilience.

The world is transforming into a different planet other than the one it was meant to be. Various human activities have resulted in the depletion of the ozone layer, which is responsible for shielding the inhabitants from increased temperatures. Increased production of carbon monoxide and other extreme gas emissions that destroy the universe must be avoided. As a recommendation of environmental finance innovation, drawing a demand and supply curve and placing it on a vertical and horizontal axis, and then establishing lines that show equilibrium price and quantity is what defines the end point. Before initiating any innovation that aims at financing environment-related issues, appropriate legislations and constitutions must be established so that accountability may be established in an appropriate manner.