So, you have this million-dollar business idea and in your head, this is it, you are about to make it! BUT, it is too early to raise your glass. Reason? You may never actualize that idea. Why? Lack of capital.
Several surveys conducted over time have concluded that women and youth cite lack of capital as the biggest challenge they face in their attempt to establish or sustain a business.
Savings are a great solution but in some cases, your savings may not be enough. Your type and/or size of business may be capital intensive. In this case, you may be forced to seek funding.
Securing business funding is tough. No one is just going to write you a check. You have to earn it. The good news is that the money is out there. The important thing is to identify the right places and ways to access it.
Below are the 8 sources of business funding:
1. Youth Enterprise Development Fund
This is a government initiative that targets young people between 18 and 34 years of age. This fund was established in 2007 to address the growing youth unemployment in Kenya.
Over the years, it has been rocked by several scandals most notably one involving the former Youth Fund boss Bruce Odhiambo. It is sad to see such a noble initiative gaining popularity for all the wrong reasons.
The fund is tasked with creating employment opportunities for young people through entrepreneurship. This is achieved by providing funding and business development services to young entrepreneurs.
This initiative offers several loan products including individual loans, group loans, and business expansion loans. The loan amount ranges from Ksh. 50, 000 to Ksh. 20 million.
Visit their regional offices in your county to apply for funding and access several other services.
2. Uwezo Fund
This is a sibling to the Youth Fund. The major difference is that the Uwezo Fund targets a larger audience.
This is a key component of vision 2030 and it seeks to enable women, youth, and persons with disability access finances to promote businesses.
That’s not all:
The target group also access mentorship opportunities with the goal of preparing them to take advantage of the 30% government procurement preference programme. Its end goal is to promote gender equality as well as end extreme poverty and hunger.
This fund was launched in 2013 and offers a minimum of Ksh. 50,000 funding and a maximum of Ksh. 500,000.
3. Women Enterprise Fund
The Women Enterprise Fund is tied to the Ministry of Gender and as the name suggests, it targets women. If you are a woman entrepreneur, you can apply for funding and also benefit from market linkages.
The funding was established in 2007 and the funding ranges from Ksh. 50,00 to Ksh. to Ksh. 2 million.
4. GroFin
GroFin is a popular financier that provides funding to small and growing businesses across Africa and the Middle East.
This financier goes beyond providing loan capital since applicants also benefit from value-added business support.
GroFin was established in 2004 with the objective of providing a unique solution of finance and support to SMEs and offers between Ksh. 10 Million and US$ 150 M.
5. Virginia Gildersleeve International Fund (VGIF)
Virginia Gildersleeve International Fund (VGIF) provides small grants for projects that empower women and girls in developing countries.
This fund supports businesses working in the following areas:
- Economic empowerment of women
- Community development
- Health and nutritional support
- Literacy and leadership training
- Educational seminars and workshops
- Promoting education in the sciences for girls
- Human rights education
VGIF was funded in 1969. Applicants can access funds of up to Ksh. 750,000.
6. ICDC
The Industrial and Commercial Development Corporation (ICDC) offers medium and long-term financing to entrepreneurs with the goal of developing industrial growth and development in Kenya.
7. Agricultural Finance Services
Agricultural Finance Services is a leading government credit institution mandated to provide credit for the sole purpose of developing agriculture.
8. Kenya Industrial Estates (KIE)
Kenya Industrial Estates finances local entrepreneurs with the goal of developing small-scale and micro enterprises.
Others:
9. KCB Lions Den
This is an entrepreneurship reality show that gives entrepreneurs an opportunity to local start-ups to pitch their business ideas to top investors.
The investors, also called lions, are:
- Kris Senanu, Black Rock Capital & Venture Capitalist
- Wandia Gichuru, managing director Vivo Activewear Ltd
- Darshan Chandaria, director and Group CEO of Kenyan Chandaria Group
- Olive Gachara, publisher and editor-in-chief, Couture Africa Magazine
- Myke Rabar, founder and CEO of Homeboyz Group
10. BLAZE be your own boss
BLAZE Be Your Own Boss TV Show gives young people an opportunity to compete for Kshs. 5 million capital. Winners also get free mentorship from successful business leaders. The show features 12 contestants picked from various regions across Kenya.
The show has a panel of three judges who evaluate the contestants’ performance throughout each season.
The current show’s judges are:
- King Kaka, founder Kaka Empire, a talent management company
- Caroline Mutoko, marketing manager with Radio Africa Group
- Trushar Khetia, chairman and CEO of the Tria Group of companies
Accessing business funding can be the hardest part of getting your business idea off the ground. However, once you get approved for funding, or find people to invest in your business, it can be a beautiful beginning. Knowing where to source funding can make all the difference in the world.
Good luck!
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