A start up business. [Photo/Linkdin]
The unemployment surge in the country is on the rise. According to recent report by United Nations; Human Development Index (HDI) 2017, Kenya recorded 39.1 percent unemployment rate.
Kenya also has the highest unemployment rate in East African. Ethiopia, Tanzania, Uganda and Rwanda have recorded a lower unemployment rate as compared to Kenya in the recent past.
However, we have alternative ways to curb the high rates unemployment rates. The fear of starting a business due to inadequate funds has restrained many in achieving their dreams, this is how you can acquire seed capital for your start up.
Open your own savings walletTap into savings, home equity, or Saccos. Don't expect others to invest in your startup if you haven't put some of your own money in. Knowledgeable investors want to see founders show confidence with cash. Investors favour entrepreneurs with more than "just" sweat equity in the business.Find a grantThe government provides grants to different start up businesses, this can be through the Uwezo fund or youth fund in Kenya. For business ventures already competing, an individual can get a loan of upto 2million shillings that is interest free. You can also get a group of upto 10 to sign up for a grant without collateral.
Enter a contestTheir is a growing support for start up businesses in the country. Various counties are offering competitive platforms for start ups. Other competition like Lions Den on a local TV channel have provided great deals for startups.
Take a loanIf you would like to scale up your business, contact a bank for a small business loan. Ensure you have as many details as possible about your proposed business. Include full financials that disclose how the loaned money will be used. You can also consider micro-financing institutions, as they will have a more thorough understanding as to how your small business will fit into the existing local market.