CBSE BoardEnglish MediumSTD 11 CommerceEntrepreneurshipResource Mobilization3 Marks
Question
What is seed capital? Give example.
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Answer
Capital needed to set up a new business or enterprise. It can be obtained from owners or his/ her relatives or from outside sources.
It is that money used for the initial investment in a project or startup company provided to an entrepreneur to prove the feasibility of the project and quality of startup capital.
To avail this sources of finance he may concern and contact various agencies, financial institutions.
Example: Narayan Murthy started Infosys in 1981, had no capital and his wife Sudhamurthy gave him ₹10, 000 which can be considered as seed capital.
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