Having a viable and profitable idea is commendable. Starting the business is another issue altogether. Many ideas have been buried because their carriers lacked the capital to implement them. Here are ideas on where to get capital for business:
- Use Personal Savings: If you are intending to start a business, start saving from your salary, wages or other sources of income. How long you save will depend on the budget you have created for the proposed business. Conservatively, try to save between 10% and 20% of your income.
- Borrow from relatives and friends: If you sell your business idea well to some of your relatives, they may agree to loan you capital. You may also consider making interested relatives partners in your business. That way, they will assist you because they have a stake.
- Borrow from mobile money apps: Apps such as Mshwari, TALA, Branch and Hustler can assist you with capital albeit for small-scale businesses. However, you must ensure that your business will have quick returns so that you can pay these loans within the stipulated repayment period to avoid hefty fines and blacklisting.
- Borrow from financial institutions
- Borrow from Youth Enterprise Development Fund
- Borrow from Women Enterprise Fund
- Borrow from Uwezo Fund
- Apply for grants e.g. from National Government Affirmative Action Fund
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