Chapter 7: Raising Capital
One of the primary contributors to small business failure is the lack of capital! The
start-up businesses are not able to generate a sufficient amount of revenue to cover
expenses quickly enough. Because of this, it is important that entrepreneurs be prepared
to raise capital.
A common theme among small business owners is that they have little money in the
bank, just a dream, and feel that nobody will loan them money. In reality, there are a
number of programs, both private and governmental, that are in place to provide capital
to small business. Approximately 95% of businesses are eligible for assistance from the
Small Business Administration (SBA).
In finding sources of capital, there are four primary choices to explore:
1. Personal Savings
2. Relatives and Friends
3. Credit Unions and Banks
4. Angel and Venture CapitalistChapter Summaries
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View Chapter 7
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