Using personal savings as capital?

One of the most important decisions to make at the start of your business is where to get funding. Should you dip into your personal savings, get a bank loan or search for an investor? A 2020 Kenya survey by Viffa Consult revealed that 43 per cent of business owners prefer owner savings as compared to 21 per cent that receive it from family and friends. Only 9 per cent use business profits to get operational capital. Since 2016, SMEs have had to grapple with uncertainty in the business environment namely elections in 2017-2018, the interest rate cap in 2016-2019, heavy government local borrowing, delayed payments, drought in 2017-2018 and now the coronavirus pandemic in 2020.