Business funding refers to the financial resources that entrepreneurs and companies seek to start, operate, or expand their businesses. This funding can come from various sources, including personal savings, bank loans, venture capital, and government grants. Each source has its own advantages and requirements, making it essential for business owners to choose the right option based on their specific needs and goals.
Different types of business funding cater to various stages of a company's growth. For instance, seed funding is often used by startups to develop their initial ideas, while angel investors and venture capitalists may provide larger sums for more established businesses looking to scale. Understanding these options helps entrepreneurs make informed financial decisions.