What are the two types of financing available?

Most entrepreneurs employ a variety of techniques to raise funds for their small firms, including personal savings. External sources of finance are classified into two types: equity financing, which is money given in exchange for a stake in the company and future earnings, and debt financing, which is money that must be repaid, usually with interest. Grants and scholarships are non-repayable money that may be provided by government agencies, nonprofit organizations, or for-profit businesses.