Challenges and Opportunities of Financing a Start-Up
Many of us are familiar with the entrepreneurial challenges associated with the process of building a business from scratch. The top 10 challenges you will face when starting a business from scratch are:
- Developing the Vision and Business Idea
- Developing a business idea is usually the first challenge faced by every entrepreneur when starting a business from scratch. Finding the right business opportunity or “Envisioning the Idea” is the first true task of an entrepreneur.
- Raising Capital for your start-up
- After developing your idea, the next challenge you are going to face when starting a business from scratch is that of raising capital.
- Assembling a Business Team
- Finding the Right Business Location
- Finding good employees
- Finding good customers
- Dealing with competition
- Unforeseen business challenges and expenses
- Keeping up with industrial changes and trends
- Exiting the business.
One Report “Accelerating Entrepreneurship in Africa” by Omidyer Network in 2012 covering six Sub-Sahara African countries, namely Ethiopia, Ghana, Kenya, Nigeria, South Africa and Tanzania found that financing, skills, talent and infrastructure are Africa’s greatest challenges as far as entrepreneurship is concerned in the continent. In this brief paper we look at the challenges and opportunities in financing business start-up in Africa.