Which of the following is a common source of startup capital?

Personal savings and loans are a common source of startup capital because they provide entrepreneurs with initial funding needed to begin their business ventures. Personal savings represent the founder's personal investment in their business, demonstrating commitment and confidence in the venture, which can also be appealing to other investors. Additionally, loans can provide a necessary influx of cash to cover expenses such as equipment, inventory, and operational costs.

Other options, such as government grants, venture capital, and employee contributions, while valid sources of funding in some contexts, are not as universally relied upon for startup capital. Government grants may not be widely accessible, often requiring rigorous application processes and specific eligibility criteria. Venture capital typically comes into play at later stages of a business and is aimed at businesses that are already operational and looking to scale, rather than for initial startup costs. Employee contributions generally do not serve as a primary source of startup funding, as employees primarily provide labor and not financial investment. Thus, personal savings and loans are the most common and directly applicable source of startup capital.