Money is anything that is generally acceptable for the settlement of debts and obligations. It is a medium of exchange. In Uganda, Money is in form of bank notes and coins that are issued by the Bank of Uganda. The following are the sources of capital for businesses.
- Personal saving. One may keep part of his or her income with an aim of starting a business. People may therefore reduce on their daily expenditures so as to save. This is mainly applicable to a business like partnership
- Family contribution. Members of the family can contribute the business capital in terms of money, Sponsorship for a course to gain a particular skill, Providing fixed assets such as Land, building, furniture and machinery
- Borrowing money. You can also obtain money through borrowing from financial institutions such as banks, micro-finance institutions, Money lenders and from friends. Money received through lending must be used by the business over an agreed period of time
- Advances from customers. A business man can make contracts with major customers like schools or other institutions to supply them with good. These customers can pay in advance thus raising capital to operate business
- Friends . A business may have good and rich friends who are willing to assist in rising capital from their friends to start a business.
- Selling shares. A share is a unit of capital. A business man may sale shares to other people, To help him sale large amounts of capital
- Can you believe this? People can raise capital through gambling.
- Merging. This involves both vertical and horizontal merging of businesses. Businesses can pool capital and work together.
- Sale of Property. Some individual sell off their personal property such as land, vehicles and other assets.
- Inheritance, some business men get money and property from people who die. These could be their relatives or very close friends