Who provides capital to an entrepreneur for starting a business?

An investor is the entity that provides capital to an entrepreneur to help start a business. Investors are typically individuals or organizations that allocate financial resources with the expectation of generating a return. They play a crucial role in entrepreneurship by offering the necessary funds for various expenses, such as equipment purchases, marketing, and operational costs, thereby allowing the entrepreneur to focus on developing and growing the business.

Investors can come in various forms, including angel investors, venture capitalists, and even family and friends. Their financial support not only helps in the establishment of the business but may also come with guidance and mentorship, which can significantly increase the chances of success for the entrepreneur.

In contrast, consumers are individuals who purchase goods and services; employers refer to individuals or organizations that hire employees; and managers are responsible for overseeing and operating the business once it is established. While these roles are essential in the business ecosystem, they do not typically provide capital to entrepreneurs for starting a new venture.