Alternative Sources of Financing and Earnings of Startups

Abstract:

Startup is a business form that is designed to implement original business ideas that are based on new technologies and the Internet. They represent an attractive alternative for young entrepreneurs compared to traditional employment in a company. They succeeded thanks to the success of companies that were founded at universities or in the garage, and today their founders are the richest people in the world. Technical progress, the opportunities of today's entrepreneurs and positive examples from the past have influenced the increase in the number of this type of business. Especially in the first stages of a company's life, it is necessary to secure sufficient funds. Initially, these are mainly external resources that are necessary until the company itself begins to generate its own funds to ensure further development. The main goal of the article is to examine possible alternative possibilities of obtaining financial resources for startups, as well as earnings of startups. On the basis of this information, it is then possible to determine the advantages of the disadvantage of individual sources of financing, to determine which source of financing is the most used among this type of enterprise. The contribution of the article lies in determining the most suitable method for obtaining startup finance.