Chapter 5

Finding the Money

Introduction

When we are considering how to raise funds for our enterprise, we generally have a choice between equity and debt. It may also be possible in certain circumstances to obtain funds from grants and other forms of government support, especially if we are just starting out in business.

Share ownership, or equity finance, lies at the heart of Western capitalism. By buying a share of the ownership of a company, an investor becomes an owner with a proportionate degree of control over the important decisions. A share is therefore a slice of the action, and the issued share capital is the cornerstone of a company’s capital structure. As owners of the company, the ordinary shareholders not only bear the greatest ...

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