According to Yoco, a fintech startup company, most entrepreneurs dip into their personal savings when looking for startup capital for a business.
Depending on the type and size of business, people generally require R20 000-R500 000 for startup capital.
Research suggests that 47% of entrepreneurs access their personal savings to start a business. About 33% use personal finance, while 30% reach out to family members for loans. Surprisingly, only 9% of entrepreneurs go to the bank for access to funding.
And while many might think starting a company requires vast amounts of cash, according to this study, 30% of entrepreneurs needed R20 000-R100 000 to start their businesses.