The investors think the African continent has a huge potential for investment. However, it is a developing zone with unique problems. During venture, its businesses lack funds.
Igor Cornelsen handles the problem in his WordPress.blog. Since it is widespread in the continent, he outlines ways the individuals can maximize their business. Furthermore, he says that the continent contains various interesting technology that is potential for its expansion beyond Africa.
Many African startups lack funds due to the way they conduct their business. For instance, Igor Cornelsen says that most of them focus on a local or regional level in place of the continent or global scale. Many investors avoid capitalizing in the mainland because the available new firms lack an investment appeal.
Without the appeal, they lack resources to sustain their growth. However, Cornelsen believes that there is a solution to the problem. He thinks that launching of the firms will increase their output.
Igor Cornelsen thinks that one firm in Africa can be extraordinary and acquire global status. Hence, it would develop it from a local to a regional perspective. It will then motivate the investors to finance in the smaller startups since they can grow outside Africa.
Furthermore, they prove to them that their efforts and time are worth accounting for in the business. African banks are also a problem for the African companies. When the individuals establish new companies, they charge high interest on their business loans.
For example, in Ghana, businesspeople part with 28% for their business loans. Hence, they dishearten most of the aspiring businessmen from securing the loans. Since there is no capital for their expansion, most of them fail to succeed due to lack of income.
Igor Cornelsen thinks that most of these companies need to use innovation platforms like Silicon Valley in London and USA to showcase their products. It would expose them hence making big returns when they get global marketplace.