What does it takes to start a business from scratch in the Maldives. How about when it comes to being a young person with no real asset to invest, but with a brilliant idea/ plan.
I’m sure we’ve all heard about the praising financing schemes such as Faseyha Madhadhu and Getset loan program which were suppose to make a difference for the likes of the startups.
The question is did it really help. Are there compelling options are for startups and entrepreneurs?
Let’s look in to it.
It’s hard to find a real investor
When it comes to pitching your unique idea, there is straight up no platform. There is no way or a path that one can follow when they require investments for potential business plans. In simple words, there is nothing like a private investment forum targeted for local entrepreneurs and startups.
Although, the important part of being an entrepreneur is not having the best of the idea but the unique way of getting what you want. Meaning the effort that you put to making your business idea a reality is what counts the most. Including your way of finding the investment for it.
With that said, it is important that from a statutory perspective, the state provides a platform for potential entrepreneurs and investors to find the ultimate pair.
There are no compelling loan programs.
Let’s talk about the aforementioned loan programs, GetSet and Faseyha Madhadhu. Neither of these programs are compelling to the average entrepreneur as they come with the base interest rate of 9% per annum.
Moreover, the availability of such programs are severely limited only to a certain group of individuals as proven by the previous attempts. GetSet program grants are offered to politically influenced individuals and, most of the offerings haven’t turned in to the business they’re supposed to be.
What ever the awarding situation of these scheme are, the fact is they’re not available readily and can be a burden for entrepreneurs with time sensitive plans.
Commercial loan programs require a strong security often upwards of 1.5x the loan amount and the interest rates are over 11%. This can understandably keep potential entrepreneurs at bay.
There are no patent law or any sorts of protection for breakthrough ideas.
This is one major reason young entrepreneurs are not willing to pitch thier business plans to investors as there is nothing stopping the investor from “stealing” the plan and doing it themselves.
A patent law or something that could ensure the rights to the original source could play a major role in motivating entrepreneurs to seek out investors more openly.
This is where the investment forum comes in.
Such forums are designed to bring potential entrepreneurs and investors looking for worthwhile investments under one roof.
Entrepreneurs pitch thier ideas and investors decide if they’re willing to invest or not. This platform will at least give a pathway for every young entrepreneurs and start up business to shine and level the playing field with others.
This is something I wish our new administration will seriously consider.
Thank you for reading. Please share.