Sources of Funds... Continued

• Community based groups:  Most people come together to save together and then they extend credit to one another. It is a cheap and convenient source but individuals may not have sufficient funds to meet the needs.
• Micro finance Institutions: These have become very popular sources of funds because the funds are easily accessible and they usually target small scale enterprises.

Let us see how one entrepreneur went about accessing sufficient funds to start up his business:

Sourcing of Funds (15 Minutes)

Read the case on Hosea Enterprises, organize yourself into a group of 5 and then answer the questions that follow:

Hosea graduated from a technical college in the year 2003. He was not able to get a stable job but worked on small part time jobs. He struggled but he was very determined. Hosea was able to save 20,000 Kenyan shillings from the part time jobs. He decided that it would be worthwhile to start his own business which could give him a stable income. He therefore set out to survey on the type of business that he could start. Hosea was advised by friends that he should start a hardware shop because he had technical skills which could help him in operating the business. He accepted the advice and within two months he had obtained a good location for the business.