Forum lays bare hitches start-ups grapple with

Access to funding, lack of information and failure by entrepreneurs to provide business history, have been cited as some of the challenges facing startups in Africa.

Investors, funding organisations, entrepreneurs and other interested parties from the continent, yesterday converged at Strathmore business School for a two-day forum seeking to bridge the gap between businesses and access to funding.

Speaking at the event, country manager of an investment organisation Business Partners Sally Gitonga, noted that it is important for businesses to have a clear focus when presenting business ideas to funders.

CHANGE YOUR AGENDA

“We do not want a situation where six months down the line you have changed your agenda to something else,” she said.

According to her, entrepreneurs are supposed to provide the required information to funders to enable them process their requests.

Some expressed concern over lack of sustainability in some businesses. “In the manufacturing sector for instance, the people we have contracted to supply raw materials want to be paid immediately, whereas consumers of the final product request for up to 60 days to pay. This makes the entrepreneur want to source for funding outside the business to ensure the company remains afloat,” one of the entrepreneurs said.

Chief imagination officer and founder of a Daycare Entrepreneurship programme dubbed Kidogo Afzal Habib, said another challenge faced in the early stages of a business is the fear of giving up power to funders when they insist on working with an owner to plan for the money provided.

“That’s currently the phase I am going through. I want my business to grow and at the same time I still want to enjoy the sole power of the business which is contrary to what the funders want,” Mr Habib said.

After the meeting, there will be an award session for the most promising startups in emerging economies.