Ruralweb/start-up finance

What is start-up finance

A starting business will not make profit immediately. A social business in the Netherlands will take up to 2 or 3 years to get financial sustainable. What are the opportunities for start-up finance?

How to access start-up finance

First of all look at solutions in own your community, because it is faster & gives you more confidence as a business (wo)man and as a community:

crowdfunding in own community amongst family and friends. Their donation will be a loan; repaid when business started off (with a risk that the business won’t be profitable).
Revolving fund: gather 10 business-(wo)men to be – all put in a certain amount of money (periodically?) – 1 person can use it as a start-up finance. When profitable the amount is paid back to the group for another business (wo)man to start.
What are the possibilities for corporate sponsors in your own community?
Prudent use of resources.
Use the services of experts, friends etc. who will offer free services.
Encourage personal savings and record keeping as prove of your viability of a business venture.
Collateral security.
Ownership: Someone from outside comes in with a business idea and the start-up money. Once the business is profitable a local business man could buy and take over the business.
Franchise-businesses: Managing a branch of an already tested concept and being responsible for the branch in terms of profit and success.
Community fund-raising for community project: http://www.youtube.com/watch?v=akuWiVtxz8A

Possibilities financial institutions outside your community.

Crowdfunding Remittances from diaspora living in Europe!
Fundraising outside your own community
Equity crowdfunding [to be extended]
Banks or financial institutions are usually difficult to engage for financing in an early stage of business or for young entrepreneurs.
Microfinance (often have huge interest rates).
How to arrange low interest loans?
Access grant facilities to start first pilots with (since start-up period is quite difficult).

Examples from the community

https://en.wikiversity.org/wiki/RuralWeb/Start-up_finance/Examples_from_the_community