ABSTRACT
This chapter demonstrates an understanding of various types of entrepreneurial financing. It assesses the appropriateness of various sources of financing for entrepreneurs with different levels of needs and different phases of business operations. Women in developing economies were 9% points less likely to have a bank account than men. Many developing countries also have government-supported programs to help SMEs finance their businesses. For instance, due to the history of high interest rates, Brazil's development bank, the Banco Nacional de Desenvolvimento Economico e Social (BNDES) dominates long-term debt business. In some developing economies, raising money through the capital market represents an undesirable option because of socioeconomic, cultural, and other structural features. Venture capital (VC or Venture) is a form of private equity capital, which is normally provided to immature capital-intensive companies that have high growth potential.
