ABSTRACT
To ensure success, the funding needs and requirements of the venture must also be satisfied. Accompanying a heightened interest in the general area of small business and entrepreneurship has been increased interest from policy makers, regulators, and academics in the nature and behavior of the financial sources that fund start-up ventures. Once the framework for success is in place and has been clearly communicated, finding money for seed capital is probably one of the easiest tasks to accomplish; many types of financing are available to the entrepreneur. Many small companies depend on bank loans, but in most cases commercial banks are rarely a viable financial option, even though, according to the United States Small Business Administration, in the past few years the number and the amount of bank loans to small firms have increased. The Small Business Investment Company Act came into existence in 1958 in an attempt to boost the economy with tax-advantaged capital.
