Business Financing

The recent wave of entrepreneurs in South Africa has made the other end of the spectrum more competitive. Many entrepreneurs still target banks in South Africa to obtain business financing loans. But the application process usually requires the entrepreneur to have some sort of income already.

Seda, a South African development agency backed by the government, looks at the options for local entrepreneurs, from borrowing money from friends and family to banks and private equity. It also gives a relatively pessimistic outlook, claiming that trust levels in South Africa are quite low, and that there are only a few active investors.

However, like many other places, it is important to acknowledge that business financing and Angel Investors are generally a relatively new aspect of business scene in South Africa, but this area if growing rapidly. And with the ability to convey ideas over the web, the scene is no longer restricted by location.

Until recently, South African entrepreneurs looking for business angels would have to look abroad, to Europe or the USA, but the Angel Investment Network has recently expanded into South Africa, and has built a network of angel investors based in South Africa, as well as global investors. As a result, local entrepreneurs can now receive business financing and funding from local investors as well as from abroad.

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