Sources of Funding for Self-Employment - JSS3 Civic education Lesson Note
Starting and sustaining a self-employed venture often requires access to funding and financial resources. Several sources of funding are available to support self-employment initiatives:
-
Personal Savings: Many self-employed individuals bootstrap their businesses by using personal savings, investments, or retirement funds to finance startup costs and operational expenses.
-
Family and Friends: Some entrepreneurs receive financial support from family members or friends who believe in their business ideas and are willing to invest or provide loans.
-
Bank Loans and Credit Facilities: Banks and financial institutions offer various loan products, lines of credit, and overdraft facilities tailored to meet the financing needs of small businesses and self-employed individuals.
-
Government Programs: Governments often provide grants, subsidies, and financial incentives to support entrepreneurship and self-employment initiatives, aimed at fostering economic development, job creation, and innovation.
-
Venture Capital and Angel Investors: Venture capital firms and angel investors invest in promising startups and early-stage businesses, providing not only capital but also mentorship and expertise to help entrepreneurs succeed.