communication and entrepreneurship skills

1. Communication and
Entrepreneurship Skills
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2. 2
Sources of capital for a new
venture
• Debt or equity financing.
• Internal or external Funds.

3. Debt or equity financing
• Financing method involving an interest-
bearing instrument, usually a loan.
• Debt financing requires that some assets
(eg. Car, house, plant, machine, or land)
be used as collateral.
• Debt financing requires the entrepreneur
to pay funds borrowed and interest rate
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4. Equity financing
Equity financing does not require collateral
• offers the investor some form of
ownership position in the venture.
• An entrepreneur meets financial needs by
employing a combination of debt and
equity financing
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5. Internal or external Funds
• Internally generated funds include:
i. profits
ii.sale of assets
iii.extended payment terms
iv.Accounts receivable (collections)
v.Reduction in the working capital
(inventory)
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6. Internal or external Funds
• External funding includes:
i. Personal funds
ii.Family and friends
iii.Commercial banks
iv.Government grants
v.Private equity placement
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7. Internal or external Funds
• External funding includes:
i. Personal funds
ii.Family and friends
iii.Commercial banks
iv.Government grants
v.Private equity placement
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