What option is best for you?
In the article, "The Basics of Venture Capital for Small Businesses" by Rosemary Peavler, it is stated that investors look for companies that promise a high return on the investment. Because of this, they aren't as interested in small businesses that intend to stay small. If you are planning on starting a business that you will eventually turn into a large business, or a corporation, perhaps looking for investors is a good choice for you. Examples of businesses that may want to look for investors are computer software development, product development, a store you plan to one day franchise, etc.
If, on the other hand, you plan to have a small business that will not grow, or if you do not want outside interference on the decisions you make for your company, a business loan is a better choice. Yes, you will have to pay the loan back (with interest), but you will have complete control over what your business does. Examples of businesses that will work better with a small loan include house painting, plumbers, maintenance shops, etc.
Whether you decide to look for investors or take out loans is a personal choice that should be carefully thought out. Take a look again at the advantages and disadvantages of each option. Write down a few venues where you could fulfill that option. With a little background research, you can decide what is right for your business.