As my partner Andrew reminds me, the vast majority of small businesses are created without any venture capital. With all the media attention on VC backed startups, it’s easy to get seduced into thinking that you need venture capital to start a business.
But in reality the sources of capital for small companies (in order of popularity) are:
-founders personal savings (either saved or consulting on the side)
-friends & family
I would love to see crowdsourced models emerge to help get (non-tech) local businesses off the ground.