ABSTRACT
This chapter examines the complex, dynamic puzzle of providing the right amount of funding for an entrepreneurial venture during the early stages of the business. It addresses common misconceptions that many people have regarding financing entrepreneurial ventures. Financing comes from a variety of sources, which will change over the life of the business. To be successful at raising the money a business needs, the business owner must be knowledgeable and realistic. Financing for the early stages of a business is known as seed financing. Small businesses with modest growth potential and/or modest growth goals established by the entrepreneur tend to have limited access to financing. Most of the financing for this type of entrepreneurial venture comes from the entrepreneur’s own resources. Banks and other sources of debt financing will be more willing to extend credit once a business has a proven record of positive cash flow that can easily support the repayment of a requested loan.
