FEDERAL UNIVERSITY OTUOKE

BAYELSA STATE

FACULTY OF SCIENCE

GROUP 4
PRESENTATION

COURSE TITLE
GENERAL ENTREPRENEURSHIP

COURSE CODE
GET201

PRESENTATION TOPIC
EXPLICIT FORMS OF FINANCE IN ENTREPRENEURSHIP
TABLE OF CONTENT

✓ Entrepreneurs
✓ Entrepreneurship
✓ Forms of finance in entrepreneurship
INTRODUCTION

ENTREPRENEUR

Entrepreneur: is someone who takes the risk and responsibility of starting a new
business venture, with the goal of making a profit in general.

entrepreneurs are individuals that have a unique idea or product that they want to
bring to market. Entrepreneur is gotten from a French word “entreprende” meaning
“undertake” while Entrepreneurship is the process or activities that an entrepreneur
creates in a new business bearing the associated risk and rewards in mind.

FORMS OF FINANCE IN ENTERPRENEURSHIP

- Bootstrapping otherwise known as personal savings of an entrepreneurs. In

this case entrepreneurs use their own money to start their business. This
process can either be done through savings, loans, or by using credit cards.
- Venture capital: this is when venture capitalist or vc’s invest money in a
startup in exchange for equity, they typically invest in high growth start ups
with the potential to make a large profit.
- Angel Investors: these are mainly high-net-worth individuals who invest in
startups, often in exchange for equity.
- Crowdfunding: this method requires raising money for a business through
asking for small donations from a large number of people, this process is often
used through an online platform.
- Governments grants: in these case governments offer grants to startups, to
help them get off the ground. This is a good source of finance but can be very
competitive with a social or environmental impact.
- Incubators and accelerators: this organization provide resource and
mentorship to early-stage business, Specifically incubators provide space and
 mentorship and access to a network of experts and investors. While
accelerators on the other hand are focused on helping startups grown and scale
quickly, incubators are long-term while accelerators are short-term
- Debt financing- this is when a business borrows money from a lender, such as
a bank or financial institution and agrees to pay the money with interest, this
type of finance is commonly used by business that have a proven track record
and are looking forward to expand.
- Revenue-based financing is a relatively new form of financing that is
becoming popular among entrepreneurs this type of financing is a situation
when a business receives a Big sum of money upfront and then repays the
amount plus a percentage of future revenue
- Revenue sharing agreements: this are similar to revenue based financing, in
this case instead of receiving a lump sum of money, the business receives a
percentage of its future revenue on an ongoing basis.
- Royalty-based financing: this is when a business sells a percentage of its
future royalties to an investor in exchange for a lump sum of money. This
method is commonly used by media industries and entertainment.
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