A STUDY ON SOURCES OF FINANCE AVAILABLE FOR ENTREPRENEURS

Abstract

The present Research study on the sources of finance available for Entrepreneurs finance refers to the process of acquiring capital and making financial decisions for a new venture or startup. The entrepreneurs finance methods range from self-financing using an entrepreneur's own savings, using debt financing like credit cards, home equity loans, or small business loans, or turning to equity financing from sources like venture capital firms. The researcher explain the various sources of finance available for entrepreneurs with different  internal  and  external environments from different angles. The main objectives of the study are 1.To know about the socio-economic background of the entrepreneurial finance. 2. To identify the sources of Entrepreneurial finance. The present study is purely conceptual and descriptive in nature. The secondary data has been collected from various sources like peer-review articles, books and online source. The author has followed inclusion and exclusion criteria to collect pertinent information related to the present study. The present research study mentions that there are a variety of financing options available to new entrepreneurs. The best option for you will depend on your business needs and your financial situation. Be sure to research all of your options before deciding on a loan. This will help you choose the source of funding that suits best with your situation and company stage. In return it increases the chances that you will successfully rise funding

The Entrepreneurs should be prepared to explore funding opportunities via business angels, venture capital, bank loans, buyouts and financial bootstrapping. Business angels, or angel investors, invest a part of their wealth in innovative companies in their earliest stages to help them grow expeditiously. Angel investments may provide a boon to an infant organization, with angels typically providing three times that of venture capital. Venture capital is a method in which investors fund a fast-growing company with the intention of selling their stake in the middle-stage. Venture capitalists take on high risks and expect high profitability when investing in new ventures. Bank loans are funding provided by a bank against business or personal credit. Financial bootstrapping is when a founder invests their own money and uses that to propel the business forwards, with methods such as joint utilization, sweat equity, owner financing, delayed payments, minimization of inventory and more to keep the business loan.