Classic and alternative sources of capital in the small and medium-sized enterprise sector in Polish conditions

Abstract

Purpose of the study: The main purpose of this article is to present selected classic and alternative sources of financing for small and medium-sized enterprises in Polish conditions. The article also aims to present the advantages and disadvantages of each source of capital.
 Methodology: The article was prepared using the method of a critical review of the literature on the formation of the capital structure of enterprises and the choice of sources of financing the activities of the SME sector. The literature review conducted analyzed articles and other publications related to the topic.
 Main findings: The presentation of selected sources of business financing, along with the advantages and disadvantages of using them, shows the multiplicity of choices available to managers, but at the same time warns against their improper use.
 Application of the study: The analysis presented here makes it possible to systematize knowledge in the area of theory related to classical and alternative sources of business financing. The theoretical content is expanded to include an objective presentation of the advantages and disadvantages of using different ways of financing business activities. The research can help you decide on the appropriate source of business financing, mainly at the initial stage.
 Originality/Novelty of the study: The study undertaken reveals space for further analysis of available sources of business financing, especially for large and advanced stage enterprises.