How do small businesses typically get their startup funding?

Small businesses typically get startup funding from several common sources. Personal savings is the most common method, where founders use their own money to get started. Friends and family often provide early funding as informal loans or investments. Bank loans and Small Business Administration (SBA) loans are traditional routes, though they require good credit and sometimes collateral. Other options include microloans from nonprofit organizations, which are designed for very small businesses. Some entrepreneurs use credit cards for initial expenses. Crowdfunding platforms like Kickstarter or GoFundMe have become popular for certain types of businesses. Angel investors provide funding in exchange for equity in promising startups. Grants from government agencies or private foundations are also available, particularly for specific industries or underrepresented founders.