Methods of raising capital for small and medium-size enterprises.
From private investor groups or institutions e.g I.C.D.C, Kenya Industrial Estate (KIE) etc. From venture capitalists e.g. Acacia Fund
Commercial banks credit facilities e.g overdrafts and short term loans
From micro-finance institutions e.g. Faulu Kenya, K-Rep, Kenya Women Finance Trust.
Owner‟s past savings
Loans from trade associations and cooperative societies including saccos.
Sale of securities to private individuals and groups i.e issue of equity shares, corporate bonds etc. Leasing of assets from lease firms e.g African Retail Traders (ART).
The Kenyan economy has been performing poorly in the recent past and many companies have retrenched workers while yet others have closed their operations. Many product and skilled people are having to start their own small enterprises. As a consultant for small and medium size firms, write a brief report, explaining the various ways in which small and medium size enterprises can raise capital for investment.
