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Challenges of Raising Finance for a Startup in Africa

December 15, 2015

When you’re starting a small business, or a startup, one of the most difficult aspect of the whole venture will be raising of finance. In fact, raising finance for a startup, in Africa, is the most difficult thing to do for a young entrepreneur.

However, with focus, patience, determination and a lot of hard work, we can achieve our goals.

Most small business entrepreneurs, especially young people, mostly do not spend much time working on their business plans and creating the necessary networks that will help them to raise seed capital. These two things are the most crucial aspects of raising finance: a solid business plan and a great network. Let me explain further.

A solid business plan is not necessarily going to help you raise finance. However, what it does, and what it tells investors and partners, is that at least you have spent some time researching into your business concept. The business plan will outline the details of how you’re going to run the business. The plan is of little interest to investors than the planning process. No body is going to give you money to run a business if you’ve no solid plan or idea on how you’re going to use their money. So spend more time crafting your business plan, especially your Executive Summary.

Secondly, work extremely hard to create a network of influential people, especially of entrepreneurs and business people. Creating a solid network is even more important and crucial than having a business plan. This is because when you have a solid network of entrepreneurs and business people, these individuals can easily assist you to raise finance. So start working on creating a network of influential entrepreneurs and business people today.

Life as a young entrepreneur is never an easy undertaking. But with focus, patience, determination, and hard work, we can all become the kind of entrepreneurs we always dream about. It is a journey. We can succeed if we really believe in ourselves. And our ideas. We should never give up.

So let’s take the journey together. We will be rejected many times. But nothing should stop us except death. And let’s have fun whiles on this great journey. Good luck!

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One Comment
  1. Insightful. I could relate with this and in addition to your network, i would say people have to make use of the little resources that they have and create visibility – building a brand – around their small achievements. I think one important thing that is essential is also learning about ‘how to tell your story’. Most often people would want to know about our theory of change – what difference does your project or initiative make.

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