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Rural entrepreneurship in Wales
Rural entrepreneurship in Wales

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5.1.2 Non-bank finance

One response to the difficulties in accessing finance from the mainstream banking sector is the growth in non-bank finance options. Crowd funding is an emerging alternative source of funding for business ideas, where funding is obtained from a large number of individuals who each provide a small amount via a web-based funding platform. See a UK directory of crowd funding platforms CrowdingIn [Tip: hold Ctrl and click a link to open it in a new tab. (Hide tip)] where you will also find a quick guide to how crowd funding works.

When raising funds it is important to keep the long term in view. Many businesses fail because they do not have sufficient funds to finance cash-flow issues and to invest in growth.

In 4 Capabilities and resources, we looked at the capital requirements of your new company. The information above outlines a number of possible places to go to find the money to support your startup and beyond.

Task 31: Your sources of funding

List the sources of funds that might work for you. Place them in the order in which you want to approach them. You may need to take further advice, for example from the kinds of organisations we highlighted earlier such as Business Wales, Wales.com, the Wales Co-operative Centre or your local authority.

Be mindful of some sources of advice too. Family, friends or emerging networks that support you are useful, but they may not be suitably qualified, as up-to-date or know the business as well as you. The bank manager is qualified to give business advice and finding an accountant and asking for their help with finance is also a good idea.