11.1 Learning Outcomes:
- Explain the differences among the two types of capital small businesses require: fixed and working
- Describe the various sources of equity capital available to entrepreneurs, including friends and relatives, crowdsourcing, accelerators, angels, corporations, venture capital, and public stock offerings.
- Describe the seven sources of funding that the founders can contribute to their new business.
- Describe the types of businesses that attract venture capital financing and explain the criteria that venture capitalists use to decide on their investments.
- Explain the process, the advantages, and challenges of making an initial public offering.
- Describe the various sources of debt capital and the advantages and disadvantages of each.
- Explain the types of financing available from nonbank sources of credit.
- Identify the sources of government financial assistance and the loan programs these agencies offer.
- Describe the various loan programs available from the Small Business Administration.
- Discuss state and local economic development programs.
- Explain how to avoid becoming a victim of a loan scam.
11.2 Action Required:
- Watch the short video at the following link:
https://www.youtube.com/watch?v=pAdjNuE6EZQ&list=RDLV30pxmKvkzFM&index=31
11.3 Test your Knowledge (Question):
- Describe the common sources of equity capital.?
11.4 Instructions
- Answer the question available in the “Test your Knowledge” section.
- Post your answer in the discussion board using the discussion link below
