Jana Matthews and Jeff Dennis

in Lessons From the Edge

Published in print September 2003 | ISBN: 9780195168259
Published online October 2011 | e-ISBN: 9780199849734 | DOI:

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Money or capital is important to an entrepreneur because he or she would need a lot of it to establish a business. Only a few, however, know how to properly approach various fund sources, when to approach these sources, and what each source considers when reviewing the credentials of the business. This chapter introduces three fundamental ways for achieving finance growth: self financing, which involves reinvesting earned profits; debt financing, which involves acquiring loans; and equity, which involves shares and partial ownership of the company. The chapter emphasizes that a company's failure cannot solely be attributed to insufficient capital as this may also be brought about by poor financial management.

Keywords: money; capital; business; balance sheet; self financing; debt financing; equity; financial management

Chapter.  18973 words. 

Subjects: Innovation

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