Answer:
Best source of financing are Personal Investment, Angels, Crowdfunding and Banks.
Step-by-step explanation:
There are many sources of funding available for the entrepreneur to avail when wanting to work independently. These are mentioned below:
Personal Investment
The first best source is funding it yourself if you have any savings or might be working in an organisation and have just received a handsome bonus that you might be able to invest in. One of the main advantage of this type of financing is that it sends a positive image to the external financiers, that the person wanting to work as an entrepreneur is willing to take risks.
Angels
These are experienced entrepreneurs who have some additional income and are willing to invest in new or small organisations. Sometimes the investment through an angel starts at low level investment and is then taken to a higher amount after some confidence has been built on the entrepreneur's business growth.
Crowdfunding
This type of method for financing is preformed via online where one person provides an investment opportunity to large group of people to invest in small amounts to meet the entrepreneur's needs. This can be either in form of loan or donations.
Bank Financing
Another good source for funding, however, in comparison to the above mentioned financing sources this type is more risk averse. This means that banks intend to provide financing to companies/businesses with low risk profiles. However, it does not conclude that they might not be willing to provide the required financing.