Bank lending to small businesses is still in the dumpster, and
venture capital investment remains way down. But even if times were
flush, some entrepreneurs would rather get funding elsewhere. Business
owners like Erica Duignan Minnihan and Susan Reiner wouldn't take out a
bank loan if President Obama delivered it on a silver platter. They've
turned to a capital source often better suited to slow-growing times:
friends and family.
According to a University of Michigan study of
entrepreneurs, the lion's share of initial start-up capital comes from
individual savings, friends and family. Though numbers don't track it,
under-the-radar financing may be gaining in this economic climate,
according to William Dunkelberg, chief economist for the National
Federation of Independent Business. Even among banks that want to fund
start-ups, he says, "no one is exactly knocking down their door." If
Mom, Dad and the neighbors are a more
To read the full, original article click on this link: How to Raise Funds From Friends and Family - WSJ.com
Author: DYAN MACHAN
