Almost all new businesses or start-ups face shortage of capital. In fact, many promising start-ups fail to take off because of shortage of capital and even more business ideas of prospective entrepreneurs never see the light of day for want of capital.
While it is true that almost 70% of start-ups fail in the first 24 months, it can also be said that most of the failed start-ups could have gone on to prosper if only they had the required capital infusion.
In a market like Mokokchung, it is very difficult for start-ups to attract capital investment from the established financial institutions and banks. Coupled with that is the fact that the return on investment is significantly lower in Mokokchung than other markets, say like Kohima and Dimapur. For instance, if a new business venture takes 2 years to break even in Dimapur, the same business will take more than twice that period of time to break even in Mokokchung, generally speaking.
There are several reasons why the case is so but the most glaring of them all is the difference in the quantum of business. The market is smaller here, therefore, the quantum of business will obviously be smaller here and, as such, the return on investment will be naturally slower here. Hence, the period of time taken to break even will be longer in Mokokchung than in Dimapur.
It is in this context that we, as consumers, should encourage the entrepreneurs who muster up the courage to start a new business in Mokokchung. It is not that they are less enterprising than their peers in Dimapur, Kohima or elsewhere. It’s the circumstances.
Entrepreneurs in Mokokchung have to struggle twice as much as their peers in other bigger markets and, therefore, we as a community should support them in all ways possible.
Entrepreneurs create wealth, they offer us goods and services, solve our problems, create employment opportunities, contribute to economic growth and help in the development of the land. As such, apart from promoting the local entrepreneurs, one sure way to encourage them is by investing in their businesses.
Our entrepreneurs need angel investors – it could be a person, an institution or any other entity. Angel investors can provide businesses with much-needed growth capital.
In the real business world, angel investors are individuals who offer promising startup companies funding in exchange for a piece of the business, usually in the form of equity or royalties.
But in our context, an angel investor could be an individual or an entity with a “giving heart,” somebody who has the heart to make the lives of fellow human beings better, a real “angel.”
Not just individuals but even the church and local village organizations, for instance, can become angel investors. Helping an aspiring entrepreneur ought to become a part of our culture.