Let’s talk money! This is a topic most people shy away from especially in our nation because most, unfortunately, continue to struggle to make ends meet for basic requirements such as food and purchasing electricity. The same tune is being echoed by women in business the country over; from start-ups, small operational businesses and large corporations who need business rescue.
There are multiple sources of funding available specifically for women in business, this article will look into five of the most relevant and accessible to women in business. The most common source of funding for the average hustler is a loan from a friend, family or micro-finance organization. Micro-finance corporations approved by the Reserve Bank of Zimbabwe are Anthill Capital (Pvt) Limited, Citicash Financial Services (Pvt) Ltd and Inclusive Financial Services (Pvt) Ltd amongst others. These loans usually have low-interest return rates over short periods and we recommend them for small startups such as veggies and clothing vendors looking to purchase stock in bulk for selling. Banks that offer microfinance loans are Zimbabwe Women’s Microfinance Bank, Empower Bank and FBC Holdings amongst others.
Make sure you understand the interest rate, payment terms and impact on your business before taking the loan. The government has taken an interest in providing funding to individuals in business through initiatives such as the Kurera /Ukondla Youth Fund which is a joint venture effort between The Ministry of Youth Development, Indigenisation and Empowerment, Old Mutual Zimbabwe Limited and CABS. Female youth can take advantage of this initiative as it focuses on youth-led businesses and has a threshold of US 5 000. Before applying for funding opportunities such as this one, make sure your budget is solely based on business activities and products to avoid getting carried away with the money in your possession. Crowdfunding is a great way of securing monies, especially amongst like-minded individuals who want to start a single-entity business or individuals looking to sell the same products. A great example of crowdfunding is multiple groups of ladies in Harare who pull their resources together to source different products from China for selling at wholesale or in individually owned shops. One such company that continues to benefit from this is the online baby store Nurture and Bloom which supplies baby clothes and accessories to multiple vendors and shops in Harare. Grant applications are another source of funding for women in business, these can use to start up or expand business ventures.
The United States Development Fund (USADF) has multiple grants they advertise via the US Embassy annually. These grants require that businesses have solid financial plans and business plans that align with the objectives the USADF is seeking to promote/achieve for the empowerment of the Zimbabwean economy. Organisations such as the Academy for Women Entrepreneurs work with USADF to identify and train businesses locally. Lastly, Bank order financing for tenders is another option women in business could work around.
Firstly, the business needs to secure a tender for the services and products they want to supply after which the approval for tender documents as well as full company documents are taken to the bank for a loan application. When the loan is approved, services and products are sourced and supplied as agreed upon in the tender documents. Payment of the bank loan should then be done immediately after the tenderer has paid for services and products supplied leaving the business with profit from which to do as they please.
Local banks such as Stanbic and ZB Bank offer this source of funding. The above funding options require a business to constantly ensure that their company documents such as the business plan, certificate of incorporation, tax clearance and bank details are up to date. The process of applying might be tiresome but the end goal is worthwhile for your business and customers who rely on you to provide them with a service or product.
