Ruralweb/start-up finance

From Wikiversity
Jump to navigation Jump to search

What is start-up finance[edit]

A starting business will not make profit immediately. A social business in the Netherlands will take up to 2 or 3 years to get financial sustainable. What are the opportunities for start-up finance?

How to access start-up finance[edit]

First of all look at solutions in own your community, because it is faster & gives you more confidence as a business (wo)man and as a community:

  • crowdfunding in own community amongst family and friends. Their donation will be a loan; repaid when business started off (with a risk that the business won’t be profitable).
  • Revolving fund: gather 10 business-(wo)men to be – all put in a certain amount of money (periodically?) – 1 person can use it as a start-up finance. When profitable the amount is paid back to the group for another business (wo)man to start.
  • What are the possibilities for corporate sponsors in your own community?
  • Prudent use of resources.
  • Use the services of experts, friends etc. who will offer free services.
  • Encourage personal savings and record keeping as prove of your viability of a business venture.
  • Collateral security.
  • Ownership: Someone from outside comes in with a business idea and the start-up money. Once the business is profitable a local business man could buy and take over the business.
  • Franchise-businesses: Managing a branch of an already tested concept and being responsible for the branch in terms of profit and success.
  • Community fund-raising for community project:

Possibilities financial institutions outside your community.

  • Crowdfunding Remittances from diaspora living in Europe!
  • Fundraising outside your own community
  • Equity crowdfunding [to be extended]
  • Banks or financial institutions are usually difficult to engage for financing in an early stage of business or for young entrepreneurs.
  • Microfinance (often have huge interest rates).
  • How to arrange low interest loans?
  • Access grant facilities to start first pilots with (since start-up period is quite difficult).

Examples from the community[edit]