Investor

Investor

People or organisations that provide the entrepreneur with the capital (money) needed to establish and operate the business. Types of Capital: Loan Capital: The entrepreneur takes out a loan from a lender such as a bank. The amount of money borrowed must be repaid with interest within an agreed period of time Grant Money given to a business by state agencies such as the Local Enterprise Office (LEO) The grant does not have to be repaid, as long as the receiver meets certain conditions E.G Creating a certain number of jobs Equity Capital Money invested in the business by individuals or other businesses.  These investors become part owners in the firm Entitled to a share of the company's profits, Dividends