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Financing is one of the most important requirements for establishing a new venture. An entrepreneur needs funds for acquiring land and buildings, purchasing machinery and equipment, procuring raw materials, paying wages and salaries, marketing products, meeting administrative expenses, and maintaining working capital. The sources of funds available to an entrepreneur can broadly be classified into internal and external sources. Personal savings are the simplest source of finance for a new venture. An entrepreneur may invest his or her own savings in the business. This source does not involve interest or repayment obligations and demonstrates the entrepreneur’s commitment to _________ _________ _______ __________ __________ ________ _________ ____ _______ _____ _______.
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