Final answer:
Small businesses typically start with funding from the business owner, using personal savings or loans, or through investments from angel investors.
Step-by-step explanation:
The vast majority of small businesses start out with funding primarily from the business owner themselves. Many aspiring entrepreneurs take the leap by utilizing their personal savings or borrowing funds, potentially using assets like their home as collateral to cover the necessary startup costs. In addition to this self-funding approach, there are also networks of angel investors in many urban areas.
These investors are individuals with the capital and interest to invest in new, small-scale ventures in return for an equity stake in the business at the early stages of development. These two methods constitute the most common paths to securing the initial capital required to bring a small business idea to fruition and handle the various expenses that come with launching a new company.