New startups, small and medium scale enterprises in Africa highly drives the economy and provides the larger share of employment. Actually, globalisation has given African startups and businesses unlimited opportunities to expand their services empire and contributions to a global scale; they are faced with different challenges that are usually peculiar to Africans.
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Nevertheless, emergence of revolution in the continent is stimulating development and growth, creating new opportunities, sustaining families by providing jobs, and opening new frontiers. This fact has demonstrated the desire of skillful young people and entrepreneurs living in Africa to provide sustainable income for families, reducing poverty in various communities. According to business global report, entrepreneurs in factor driven economies, like that of Africa, are more optimistic about entrepreneurial possibilities to start new venture and they always believe in their abilities to do so, thereby increasing success probability. However, it has been reported that finance remain as the ultimate barrier to this success.
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Issue Before Us
If you meet African entrepreneurs and ask them what their major challenge is, most likely, bulk of them will point at inadequate funding. Economic development of many countries in Africa is directly proportional to the success of local SMEs to receive financial aid that is required to grow their businesses. Our start-ups have six major barriers facing them;
- Limited access to finance
- inconsistent government policies and regulations
- weak infrastructure
- cross border payments
- stiff competition from conglomerate
- carefree attitude from the government
But by far, the most tedious among the challenges is limited access to fund. Although, African enterprises are increasing in number, available financing is not increasing in same proportion, in some report, financing is almost stagnant. Additionally, about 85% of small businesses are underfunded, close examination revealed that majority do not have good business plans, this is another problem as it reduces the opportunity to receive grants, credits or/and loans.
A survey was carried out on 200 entrepreneurs, carefully selected from Democratic Republic of Congo, South Africa, Kenya, Nigeria and Ghana. The researchers asked the participants to identify most required resources to promote entrepreneurs hip, and programs that they've participated in to grow their businesses, then asked about the BIGGEST challenges facing their businesses.
Here is the report;
36% of the participants said that there's a need for better access to finance.
23% opined that better infrastructure and facilities will boost entrepreneurship
24% said that more support is needed from the government to increase number of entrepreneurs.
Even when funding is recognised as the major resource required to start business or keep business going , it remains as the scarcest. Another bane is inadequate high-skilled workers, in addition to poor support from the government and lack of real-time information about markets.
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How Cryptogene Will Solve This Problem
This solution is not rocket science, small business owners need access to startup capital together with knowledge and training that will help them in building feasible and viable business plans and models, that will significantly improve their chances of receiving funding. Exactly, this is where blockchain would be of great benefit. Cryptogene-Build would gives members the opportunity to share startup ideas and get crowd funded without much problem. If there's any need, other similar service providers can also be a part of this. I find this feature very interesting, it allows a member to post an idea which can be developed by the community through brainstorming. The participants in the concept becomes stakeholders in the project after creation and verification of POI (Proof of Idea).
Cryptogene-Build provided a voting mechanism, similar to steemit but different in that, token holders have certain amount of votes that can help a project suggested to Cryptogene-Build get implemented. It works in similar way to Kickstarter.
All of these products will grow the ecosystem, it will add immense value to cryptogene token and enriche the holders (investors). What are you waiting for? To know more about cryptogene click here. Ever since the beginning of partnership with airhawk-project, I have tried my best to sensitise entire steemit users and cryptocurrency enthusiasts on importance of this token, so you don't have any excuse to miss out of this once in a lifetime opportunity.
In spirit of new partnership between air-hawk and cryptogene
Cheers!