(L) Sources of finance

It is pivotal to have access to money, in order to start and run a business. There are many ways to get money, the most suitable sources are:

·         Own savings

Personal saving is an advantage for entrepreneurs; this will prevent stress and pressure of gathering money from scratch.  Savings can be from previous employments, inheritance, and redundancy. This will be a positive head start for the business and a helping hand also advantage is its interest free.

·         Partnership

This is when two savings is used to help start the business. This is an advantage as there is more money and less pressure. There is a disadvantage for this scheme; sometimes entrepreneurs may fall out over disagreements.

·         Loans

Entrepreneurs may ask loans from family and friends. This is a hassle free loan, as family may not charge high interests and pressurise to pay back by certain time. Also there a new schemes for entrepreneurs who are looking for a loan. Local, national and European governments now offer special loans and grants. For example The Princes Trust can help budding entrepreneurs with loan to start business.