Entrepreneurial Financing in a Knowledge Based Economy

Abstract

Funding is critical; to the smooth take-off and, ensures the effective functioning and guarantees the continued existence of any new venture. Financing entrepreneurial ventures has particularly been challenging in all kinds of economies including knowledge-based economies. The inability to overcome funding problems has forced many people with ambitious ideas that would have been launched audaciously towards economic emancipation and development to forcefully discard them. The objective of this paper is to identify different sources of entrepreneurial financing, and review extant literature associated with the various sources of financing. The study is qualitative in design. Consequently a total of ninety articles considered useful were retrieved from various sites for the study. The discovered numerous avenues available for entrepreneurial financing. while, the study concludes that every aspiring entrepreneur must prepare to launch out first with founders, family, and relatives capital and thereafter explore a catalogue of other sources mentioned in this paper depending on the firm‟s capabilities and peculiarities to continue with the financing of the firm. The research recommends that every entrepreneur should be skillful at bootstrapping.