When there's no availability of business capital

[Sotherefore]

85% of peoples will like to start up a business if they are stable financially , the reason why most potential business men and women are not able to start up a business is because they do not have the required money needed to start up and run this business.

Because of lack of capital the most challenging factors for new business men and women is how to raise the money they need . Sometimes it may be difficult for them to raise the money they need since some of them actually do not like working for any business organization.

Since most do not like working to raise the needed money from other private business they tend to start up the type of business they are interested with a loan . Sometimes getting a loan to start a business comes with its own advantage and disadvantage but I see disadvantage to be one of the most outstanding risk of loans.

Normally it is risky when people engage in a business with a loan and this may not be advised. Instead of getting a loan I suggest that anyone who is interested to start up a business should go through the normal path of working and raising the needed capital since there's freedom in establishing a business with the capital you have raised personally.

 

[eldavis]

Personally I feel working for others or doing other side hustles is way better than going for a loan. While working for in other organizations, you are not only trying to gather capital for your personal business, but you are also gaining experience as well and more knowledge.

 

[kayode10]

Raising capital for business idea is one of the foremost headache for most entrepreneur. It is very hard to establish a business when you have nothing on you.

Most people are advised to seek business fund from there family members and friends. The mentality of the people over here is that you have already wealthy before you can think of establishing a business.

Loan is the major option for those who want to go into business. The only problem with this is that you need a huge collateral before you can secure a loan from the financial institutions.

Another thing is that there is discrimination in the financial institution when it comes to giving out loans to business people.

They prefer to give those who are already rich. They believe that they are going to get back their money within short time from this businesses.

Few years ago one of the richest people in my country and now is that he wants to build a mega plant. Most of the financial institutions are reaching out to him to give him loan with soft interest.

The only option left for a new enterpreneur to raise capital for his business is to partner up with someone who have resource.

 

[TOZZIBLINKZ]

In some areas or part of Africa is to be precise Nigeria, people have good and great business ideas as well as knowledge but this knowledge and ideas remain as knowledge and ideas if not implemented. The case here is not that they are afraid of implementing their various business ideas but the key problem or obstruction hindering their process of establishing their business ideas is as a result of lack or on availability of good capital.

There is no money in the country (Nigeria) and even the government are not doing anything about it thereby killing business ideas or well thoughtful business ideas drinking on employment and unnecessary hardship on citizens and inhabitants. in most cases a lot of people seek to borrow funds or loan from banks and various financial institutions. Personally I would not advise this act because it has bad repercussions if you are not able to pay back in due time .

Others seek for money and financial grant from Friends , relatives , well-meaning friends , colleagues , business partners , higher status entrepreneurs etc. But in following this intention you have to be prepared to explain to them what your ideas are and if it is something benefiting their is possibility that they could help you.