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How young entrepreneurs can raise capital for new businesses

simon 7 years ago
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Young are always finding it very difficult to raise capital . I found the following article on Nation very interesting read .

The group will serve as a moral suasion to coerce any defaulting member to repay their outstanding loan lest the group faces the penalty of denial of further loans or other members become liable for the defaulter.

One advantage with microfinance lending is that it inculcates the spirit of saving where group members are compelled also to make savings with the MFI from the revenues of their businesses. These savings are not available for withdrawal until the end of the loan term.

The compulsory saving will also serve as additional guarantee for the loan, besides building the asset base of the business.

Elsewhere, you can also approach venture capital firms that provide equity financing to business plans or companies with high growth potential.

There are a number of venture capital firms locally offering equity financing for start ups. For you to win their favour, your idea must demonstrate unique characteristics, with clear competitive advantage besides strong market viability and future positive growth projections.

http://www.businessdailyafrica.com/How-young-entrepreneurs-can-raise-capital-for-new-businesses/-/539444/2227836/-/item/1/-/wos9cn/-/index.html

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