0 
0 By By Victorious Chakamba
A business in its early phases of existence is referred to as a “startup. “These ventures are launched by entrepreneurs who notice a market for a product or service and most of the time, these businesses launch with low profits and huge costs.
Grants, contests, investments, and clinging to well-wishers are just a few of the various ways these new businesses acquire money.Thus, the thrust of this article is to further illuminate how start-ups generate capital.
They are blazing a trail in terms of creating current and future wealth in numerous industries.
The Entrepreneurial Magazine caught up with co-founder of eAgro, Golden Nhunhama (24), who stated that grant applications have been a vehicle for the company to acquire financial injection.
Winning grants has been a windfall for entrepreneurs and has contributed to the success of their companies. Despite how heavily they rely on this, there are occasions when the power may not be in their favor since they may fail to be awarded the grant, which may cause them to regress.
The procedure of engaging equity investors to acquire funds is currently taking precedence over grant techniques, according to Nhunhama.
Nhunhama said: “A comprehensive understanding of how they want their business to earn yields is enough evident in their flexible methods of capital raising.
“They can even go as far as to engage in rivalry with other startups in order to raise funds. The competition rewards the victors with capital to assist them in their venture.”
The success of Zimbabwe’s entrepreneurs has amply demonstrated the difficulty of raising capital to launch a firm in a country where most people are already struggling to make ends meet. This should not deter entrepreneurs from implementing their company’s plan.
Bank support systems such as EmpowerBank that support start-ups and urge investors to invest in them are essential in the country. Are they not making an excellent manoeuvre in coming up with solutions for the world’s predicament? Should the government or any other investors begin to make an investment in their prosperity?
Unconventional Capital (UNCAP) notes that, 6/12 of the fastest growing economies in the world are African 22% of Africa’s working age population are starting new businesses, 98% of early-stage enterprises are financially underserved and 90% of Venture Capital funding in East Africa still goes to expats.
This statistical data emphasizes the necessity for African nations to begin formulating legislative plans that encourage new firms, especially startups, which have evolved into a vehicle for economic growth in many nations. African companies are growing and having a beneficial influence both within and outside of their immediate areas.
Startups cannot be denied the assistance they need from the government. They need to be granted financial assistance without having to break too much sweat for it. In this current economy, there’s a recession looming that is being battled by entrepreneurs. Better results will be yielded if the government can extend its helping hand to these entrepreneurs.
Resourcefulness is ingrained in entrepreneurs. Raising capital is no surprise and in an unpredictable market, many founders are now looking for alternative financing sources. These sources’ grants, investments, loans, and contests are among the most prominent. These funding solutions give business owners flexibility and choices when they need them most, positioning them for long-term success.
Victorious Chakamba is a Media and communication student at University of Zimbabwe. She is passionate about writing. She can be contacted on: +263778303646.
