Small businesses are the backbone of the economic system. To provide a clear understanding to the reader, this first edition of small business entrepreneurial finance is divided into four major sections. The entrepreneurial outlook; introduces the entrepreneur and the entrepreneurial process from both a historical and a research perspective. The role and nature of entrepreneurship as a mechanism for creating new ventures affecting economic development is presented. The characteristics and background and types of entrepreneurs are discussed. Starting the business venture; focuses on the elements in the entrepreneurial process that are a part of creating a new venture. After a discussion of creating and obtaining the right business area, important aspects of the business plan and financial planning process. The most difficult aspects of creating and establishing a new venture is discussed. Financing the business venture; after discussion of the alternative sources of capital, specific attention is given to two primary financing mechanisms: informal risk capital and venture capital. Ending the business venture presents material related to business valuation.