Start a Business Without Capital, 5 Tips

An Empty Wallet Needn't Put You Down
An Empty Wallet Needn't Put You Down

To embark on any new venture, a great idea is more important than capital. However, we cannot neglect the importance of money when it comes to application of great ideas. Interestingly, getting the capital you need to start your business may not be as difficult as you think.

Precisely, for that reason, Kuza Biashara has rounded up some tips on how to start a business with no capital in Kenya (or anywhere else in Africa).

Tip #1: Find Support from Family and Friends

Even the best of all business ideas will fail to materialize if you do not market it – especially to those close to you. So, start by talking to your friends about your business plans. Be open about your financial challenges and while at it request them to provide you with a soft loan to put your idea to good use. Even if they are not in a position to provide you with financial support, they will most likely be in a position to refer you to a reliable partner who can then support you. KUZA BIASHARA TIP: Don’t share the core secrets of your business idea. Somebody might just decide to steal your idea.

Tip #2: Look for a Partner

So you have a brilliant idea but no capital to roll it out? Well, count yourself lucky because there are many people who are looking for people like you. Where can you find them? That’s where the power of Social Media marketing comes in. You can find good partners in groups like Business Ideas 101, Academia Research Writers or Wazua Forum. KUZA BIASHARA TIP: Approach partnerships with a measure of caution, always follow the due legal procedure.

Tip #3: Low Capital Investment Ideas

Since you don’t have a lot of money to risk we would encourage you to focus on ventures that mainly focus on your skills rather than capital. Kuza Biashara, what are some examples of these? You might want to ask – Well, they are as Wildebeests of the Maasai Mara game reserve. A few quick ones would be:

  • Online Writing Jobs
  • Product/Affiliate Marketing Jobs
  • Gadget Repairs
  • Consultancy services (e.g You can start a small blog offering Financial Consultancy, Home-care Consultancy or anything you’re an expert at).

You can even take to manual labor and save until you raise enough capital (and build a good relationship with your bank) to start your business. As the old quote goes “Behind every small business, there’s a story worth knowing.” – Paul Ryan.

Tip #4: Secure a Small Business Loan

SME loans are available to are available to any business, but yours will need to meet a certain criteria in order to qualify. First, you need to convince the financier that you’re an honest and reliable person and that you would be in a position to repay your loan. Besides that, you might need to provide collateral for the loan in order to qualify for a loan. What about if I have just graduated from high school or campus and I’m yet to build my profile? Well, in that case you can look for a guarantor to co-sign your loan. A guarantor can be anyone from your buddy to your parent provided he/she has good credit records and some asset to provide as security on your behalf. So, why not convince your parent to co-sign for you as you take up your first loan? Below are some places you can seek for finance:

  • Zidisha
  • KCB SME Loans
  • The Agri-Vijana Loan from the Youth Enterprise Fund
  • Women Fund

Among many other institution. Remember, you can also seek the for grants from NGOs and Non-Profit organizations that serve within your locality. **Disclaimer: Please note that by publishing this information Kuza Biashara is not endorsing any of these companies, we’re simply sharing information which could be useful to young, upcoming entrepreneurs in Africa.**

Tip #5: Unconventional Sources of Funding

“Hey, Kuza Biashara I’m in the dark, what do you mean by unconventional sources?” – Easy… by unconventional sources we’re talking about some little known methods of raising cash. Methods like participating in entrepreneur competitions which reward winners with either start-up capital or mentorship. Here are some competitions you can join in a bid to find financing for your idea:

  • Kenya StartUp Cup
  • Google Innovators Competition
  • Tusker Project Fame (For Musicians)
  • Art and Design Competitions
  • Blogging Competitions…etc, etc.

Once again we’d like to clarify that Kuza Biashara has no business interest in any of the examples mentioned above. Many more regular updates on these competitions can be found on our Facebook Page.


Well, that’s quite a mouthful for today. But as you chew the information, we encourage you to LIKE our Facebook Page so we can teach you more on how to start a business with no capital in Kenya or any other part of the world.

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