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Question 20 of 20

Q.If you are an Entrepreneur, how can you mobilise the capital ?

Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2025Subjective· 2mImportance★★★★★
100% · 20/20 Questions
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An entrepreneur mobilises capital by pooling personal savings with borrowed funds and external sources of finance — banks, financial institutions, government schemes, partners and, for a company, share and debenture capital.

One of the key functions of an entrepreneur is arranging the money required to start and run the enterprise. As an entrepreneur, capital can be mobilised in several ways:

  • Own funds (equity): investing personal savings, which also shows the entrepreneur's commitment.
  • Borrowings from banks and financial institutions: term loans and working-capital loans from commercial banks, and assistance from institutions like TIIC and SIDBI.
  • Loans from friends and relatives: informal borrowing, often at low or no interest.
  • Government schemes: funds and credit support through schemes such as Pradhan Mantri MUDRA Yojana, Stand-Up India, and CGTMSE credit guarantee for small enterprises.
  • Partners / investors: admitting partners who bring in capital, or attracting angel investors and venture capital for a growing venture. …

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