What are sources of capital for small scale enterprises

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Small scale enterprises are Small scale Industries or small business are the type of industries that produces goods and services on a small scale. These industries play an important role in the economic development of a country. The owner invests once on machinery, industries, and plants, or take is a lease or hire purchase.
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Large scale enterprises may require large resources and capital to perform their operations but for small scale business it requires little capital and for there startups capital it can easily be gotten with little or no capital.


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The following are sources of capital for the small scale;

  1. Family and friends: one can actually raise up capital from friends and family this could be close relative and friends which attract no interest.

  2. Savings: small scale business could get there source of capital from money saved over time maybe from another source.

3 soft loans: small scale business can get loan from Microfinance Bank or from any banks where there interest is low so that the interest of the banks will not eat up the business.

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