How Do African Businesses Get Start Up Capital?

Hi again, sorry again for the long pause. It seems to be occurring more than what I would like, but things have been moving at whirlwind pace recently.

Anyway, this is a question for all of you entrepreneurs, business students, professors, and others in the know on the inner workings of start ups in Africa. How did you or someone that you know get start up funds?

My conjecture is that it would go something like this with the most common sources of funding starting at the top:

personal savings and property holdings family and remittances vendor finance micro finance other non profit initiatives bank loans venture capital investment funds Often times in my reading the biggest obstacle outside of weak infrastructure cited as a deterrent to entrepreneurs in Africa is the scarcity of start up capital, many of my acquaintances have echoed this sentiment. What I wonder is if there is a way that, with today’s technology, the start up capital reservoirs in Africa can be widened to the extent that a really good entrepreneur lacking personal funding or powerful connections can do more than just ask family and friends for start up capital (without necessarily having to fall under the umbrella of micro finance).



To learn more about this author, visit Benin Mwangi's Website.

Like this article? Share it with your friends

Related Articles
Why should Venture Capitalists invest in SME's in Africa?
	Africa is at the dawn of a new renaissance, if you want a high return on your capital, you should include Africa in your portfolio. I'm not only going to invest in Africa because I'm African, but because this is the...
18.0 Conclusion: Entrepreneurs and entrepreneurship in Africa
	Ultimately, the future of entrepreneurship in Africa must be in the hands of the Africans themselves.
It's noble for you celebrities to adopt African babies
	People have been adopting African babies for years now, now the celebrities are trying to help out dear old Africa. While I applaud these celebrities and their noble efforts to help African babies find a better life...
VII F. Attract Capital Flows and Encourage Foreign Participation: PROMOTING STOCK MARKET DEVELOPMENT IN AFRICA
	Private capitals flows—foreign direct investment, remittances and portfolio investment and are an important for stock market development.
George Ayittey conversation about a Cheetah sustainable fund
	I had a wonderful conversation with George Ayittey last friday about the recent TED conference in Arusha, Tanzania. I have profound respect for George because he is a old-school pragmatic thinker. Dr. Ayittey is tra...

---

Related Forum Posts
	Join Hand with Developer
	Giving back
	What do you do to give back?
	Good marketers can capitalize on cash crunches
	Availability To Places That Need Them
	Getting venture capitalists involved
	Raising $5-$10 Million
	Re: How do you critique a small business?