Enterprise 2.0

How Do Entrepreneurs Really Finance Their Businesses?

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Executive Summary

If you crack open most entrepreneurship textbooks, you'll find that they talk a lot about how entrepreneurs finance their businesses. Because these books are targeted at students in courses that focus on the creation of high potential businesses, they spend a lot of time discussing venture capital, angel investing, and other sources of external equity capital. As a result, they don't describe how most entrepreneurs finance their businesses. In reality four patterns prevail in entrepreneurial finance, these four patterns are explained in this paper.

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