Comparison between different types of funding sources for entrepreneurship

1
Entrepreneurship

2
Table of Contents
Introduction................................................................................................................ 2
Comparison between different types of funding sources...........................................2
Real World examples of various funding sources.......................................................5
Conclusion.................................................................................................................... 7
References................................................................................................................. 8

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Introduction
Entrepreneurship is an activity that involves combining land, labour, capital and
machine in order to set up a business in hope of profit. It has always been said that
finance serves as blood to business; hence considering the vitality of finance
entrepreneurs tap various sources to generate finance for their ventures. Four such
well-known Sources are:
 Personal
 Private
 Bootstrapping &
 Governmental and Banking (Rao, 2010)
Comparison between different types of funding sources
TYPES PERSONAL PRIVATE BOOTSTRAPPIN
G
GOVERNMENTA
L AND BANKING
Origin Comes from
Friends,
Family close
relatives,
angel
investors
and
crowdfundin
Comes from
private
Investors,
venture
capitalist
Comes from the
profit generated
through small
business
operations or
commercial
activities by the
entrepreneur
Comes from
financial institutes
set up by the
government at
various levels in
order to support
medium and small
scale industries