Part of the challenge to becoming an entrepreneur is the gap between early seed funding and formal funding from venture capitalists.
Neil McMurchy, managing vice-president for application software at Gartner, says it can be very hard to get funding for product development. “There are always small amounts of capital available from the family, friends and fools category. But getting serious venture capital would depend on the market you work in.”
Countries in Europe and others like Australia and South Africa are usually very conservative.
“Investors in France would for example only start to back a smaller company once it has made a profit for five years. We see that most of our clients end up in America, because they are less conservative in their approach.”
Seed funding is capital a small business receives to support itself until it can generate cash on its own. Online crowdfunding platforms that can be used to raise capital include SeedInvest, Seedrs and Angels Den. start his small businesses, but also provide for his family while he waits for his businesses to grow.
His biggest challenge has been to f ind the right people to either partner with or become his cl ients. “It i s difficult to get reliable people to work with; people who have t he guts to become entrepreneurs.
“It is hard work, and scary to know that if you do not work, you do not get paid. To survive as a small business you need to become more personal and sincere in your approach. You need to understand your clients’ problems – and scratch their itches to become a success.”