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ACCOUNTING

Benchmark: Money from Where?

A graph that shows various sources of capital and the percentage of growth companies that use these sources.
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It's not surprising to learn from a recent Inc. survey of 226 members of the Executive Committee that many company builders turn to their families for funding. What is surprising is how many of them are financed by suppliers and customers.

Percentage of growth companies that had raised capital from the following sources:

Family members 65%

Personal friends 33%

Business colleagues 23%

Suppliers 21%

Customers 13%

(Total exceeds 100% because multiple responses were allowed.)

Source: Survey by Inc. and the Executive Committee, San Diego, May 1994.

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