Alternative Funding Sources

As entrepreneurs prepare to embark on their journey of becoming successful, it is not only important for them to research their industry it is also important for them to research every funding source they can. Researching multiple funding sources will help them locate their best funding options.

The first website I chose for this blog is aeoworks.org  (AEO) or Association for Enterprise Opportunity. The AEO is a national membership organization and voice and voice of microenterprise development in the United States. This company has helped over two million entrepreneurs support themselves and their families through business ownership. The site provides entrepreneurs with information on microenterprise development organizations in their area, sets them up with a mentor, and the site allows the future business owner promote their services and products when the business is established.

The initiative of AEO is to promote interest and awareness of their members and the impact of the entrepreneurs. The Catalyst Initiative identifies, supports, and pilots opportunities to increase the capacity of microenterprise development organizations to accelerate and expand the impact of microenterprise in the U.S.  The Capacity Building in the Southeast increases the efficiency and effectiveness of advocacy operations and state and national levels, And the Green Economy fosters a network to support members as they capitalize on the “green opportunity; identifying new “green” opportunities with and for their members and partners.

The second website I chose is Community Development Venture Capital Alliance  (CDVCA). CDVCA provides equity capital for businesses in underinvested markets.  CDVCA invest in companies in economically distressed areas in the United States and around the world. CDVCA requires for companies to have strong management, impressive growth potential, and the promise of high financial returns. CDVCA also looks to see if the company will create jobs and the impact their investments will have on low income communities. This site provides entrepreneurs will tons of information such as: events, consulting services, their public policy, the different programs they offer, and federal initiatives.

Alternative funding are great ways for entrepreneurs to get financing when the banks will not lend money, but there are some disadvantages too.  Some of the disadvantages are offering collateral, have high interest fees, offer a stake of the company. Conducting research will assist you in finding the best funding option for your company.

References

Anonymous (2011) The Community Development Venture Capital Alliance (CDVCA). Retrieved on November 5, 2011 from http://www.cdvca.org/

Anonymous (2011) Association for Enterprise Opportunity (AEO). Retrieved on November 5, 2011 from http://www.aeoworks.org/

Anonymous (2011) Alternative Funding Sources for Small Businesses. Retrieved on November 5, 2011 from:http://smallbusiness.intuit.com/news/Expansion/growth-of-business/18887918/Alternative-Funding-Sources-for-Small-Businesses.jsp