What are the Common Sources of Finance for Entrepreneurs?
Entrepreneurs can access finance from multiple sources:
1. Personal Savings: Many entrepreneurs start by investing their own money. 2. Family and Friends: Borrowing from close associates is a common initial step. 3. Angel Investors: These are affluent individuals who provide capital for startups in exchange for ownership equity or convertible debt. 4. Venture Capital: Venture capital firms invest in high-growth potential startups in return for equity stakes. 5. Bank Loans: Traditional bank loans are a common source of funding but often require strong credit histories and collateral. 6. Crowdfunding: Platforms like Kickstarter and Indiegogo allow entrepreneurs to raise small amounts of money from a large number of people. 7. Government Grants and Subsidies: Various government programs provide financial assistance to startups and small businesses.