Financing Sources for Venture Capital: How Startups Secure Financing

For entrepreneurs, having the ability to access funding is an essential step towards launching and developing their business ideas. Due to the various funding challenges that entrepreneurs can face, there have been multiple funding programs created in order to help businesses thrive and encourage a healthy economy. This literature provides a review of venture capital, small business grants, commercial loans, private lending, and funding programs for micro-entrepreneurs. There are limitations since further research needs to be conducted as to why some entrepreneurs never apply to some funding programs when they know they exist. There is a need for researchers to review these funding sources in order to further understand the venture capital industry and the diverse funding mechanisms that support entrepreneurial activity.