Finding finance has always been a bottle-neck on South Africa's entrepreneurship and this can be attributed to many factors. The duty of an entrepreneur lies not in seeking funding to start but in growing their enterprises.
Despite concerns, young startups are putting in the extra work and getting creative to fund their dream projects by holding a second job (42 per cent) and paying themselves below market wage (48 per cent of those who pay themselves a wage). To finance their startup, young startups are leveraging personal savings (52 per cent), borrowing from family and friends (8 per cent), accessing angel investment (7 per cent), using crowd funding platforms (4 per cent), accessing traditional bank loan financing (4 per cent), or venture capital financing (3 per cent).
As compared with previous generations, millennials are more likely to leverage venture capital (7 per cent compared to 5 per cent) and are twice as likely to leverage crowdfunding (4 per cent compared to 2 per cent), whereas others are twice as likely to leverage traditional bank loans (4 per cent compared to 8 per cent). In terms of sources of cash flow, 45 per cent of startups have used credit cards and 33 per cent have leveraged lines of credit.
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Entrepreneurship for Kids
We believe that it is never too early to help our kids to develop an Entrepreneurial Mindset. Our book series caters to younger learners and teaches the following:
Persistence and Grit
Good evening fellow entrepreneurs. I am looking for investors/funding for my new startup business that is just a month old. It is a catering business but aimed at creating employment for job seekers aged 18-24. I would like to train unemployed people in the Pretoria Area on how to do food preparation and packaging for catering.
I left the corporate world in 2016 when my son was born with Down's Syndrome to spend time with him for his proper development. He is now 5 years old and in a mainstream school coping really well. Unfortunately, I have been unsuccessful in finding a job for the last 2 years and thus decided to start my own catering company for the Pretoria Area. As part of my business to give back to the community, I would like to employ young entrepreneurs to train them in food preparation and packaging in the catering industry. In order to successfully do this I require an investor to assist in procuring equipment as well as being able to pay salaries to the young entrepreneurs. With this initiative, they will in turn be able to start their own businesses in their own communities and perhaps also provide training to those less fortunate than themselves.
I have applied through the normal startup revenues but have unfortunately been declined due to the fact that the business is only a month old and also due to a judgement on my credit profile which was taken against me during the last 5 years that I was unemployed.
I would also like to be able to donate 20% of monthly profits to the Down's Syndrome Association of Tshwane as they are an NPO and currently operate at a deficit. They make such a difference to the lives of people living with Down's Syndrome by affording them a better quality of life by teaching them the skills needed to navigate through life's difficulties. Unfortunately, there are no organisations willing to assist me in this initiative at this stage.
Should anyone be willing to invest in this business please contact me.