Lesson 7
Financing the Enterprise

In this lesson, students will learn about several different options for funding business enterprises, including family lending, traditional bank loans, and microfinance programs. Through an introductory case study in family lending, students will become familiar with the concepts of start-up funding, loans, credit, and debt as well as the two main types of business financing: debt financing and equity financing. Students will then engage in a role-play exercise in which they use their knowledge of different financing options to recommend a course of action to an entrepreneur based on the information he or she provides about his or her business. Finally, students will test their resourcefulness by thinking of creative ways to "bootstrap" their way into business without seeking external financing.


  • Cost
  • Cost/Benefit Analysis
  • Credit
  • Debt
  • Debt financing
  • Equity
  • Equity financing

Standards in Economics and Personal Finance

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