On 19th March 2019, Ndoto Hub partnered with Turku University to conduct a design workshop with various experts from the various university in Tanzania i.e. the Sokoine University of Agriculture, University of Dar Es Salaam and Ardhi University along with some of women entrepreneurs from Ndoto Hub to discussing a critical challenge and coming up with alternative solutions.
And the challenge for the discussion was ‘How can start-ups access funds or finance their businesses in Tanzania?’
The workshop was centered towards finding alternative solutions on how startups in Tanzania can be able to access and raise fund for their businesses.
This challenge has been suggested regarding the most pertinent issues among a number of startups including women. At Ndoto Hub, a number of entrepreneurs who are joining our incubation program do point out many challenges, the top challenge has always been lack of fund/capital to start and grow their businesses.
One key to a successful business start-up and growth is the ability to obtain and secure appropriate financing. Raising capital is the most basic of all business activities. But, as many new entrepreneurs quickly discover, raising capital may not be easy; in fact, it can be a complex and frustrating process. Reports show that a staggering 85% of small businesses are largely underfunded. Moreover, this is still the case even though interacting with other entrepreneurs out of Ndoto Hub.
Now, what are various options for financing start-ups? And how can startup access and benefit from such ways?
We had four groups, each group had an entrepreneur and the experts from the universities. The discussion got heated and become quite interesting due to the fact that they were all came up with solutions and created the funding strategy plan for the business of each entrepreneur in the group.
However, the solutions were inspired regarding the context of the country and the level of the businesses. We explored the procedures to obtain loans from banks, equity investment, support from the family, angel investment up to crowdfunding. And to sum up we came across an article shared by Venture Capital for Africa to guide startups on their funding strategies.