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Source Of Funding

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Running head: SOURCE OF FUNDING 1 Source of Funding Instructor name Student name Date SOURCE OF FUNDING 2 Source of Funding Introduction Starting a new business he is one of the most difficult tasks because it requires a solid idea and huge funding to proceed with numerous business activities. Most of the businesses require the outside funding but numerous small business owners are not aware of where to get the funds and how much should be arranged. Funding means providing the financial resources to meet the money needs. In general, it means to fulfill the need for cash. In this paper, we will discuss the meaning of funding, the importance of funding, internal as well as external sources of funding, and the factors affecting the choice of the funding source. What is funding Funding is the act of providing the financial resources to the business which is mainly in the form of money or the other value like time or effort, program, and project usually by the company. The term financing is also similar to funding, the only difference is that funding means the internal reserves of the organization whereas financing is the external sources of capital. Various sources of funding include venture capital, subsidies, taxes, donations, credit, etc. Funding acts as a fuel on which the business runs. The choice of funding depends on the Desire of the business to be in debt and the amount of money a business will require to launch and maintain through the various occasions. (Francis, ...
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