Stokvels help finance businesses for many women
More women are moving into business, yet incredibly hard for the female business owners to access start-up capital. Stokvels and savings clubs are providing women with opportunities to finance their vision and business.
Nomsa Zulu is part of a savings stokvel that she started with her neighbours and friends. Each month she contributes R1000 into the savings scheme, and share the interest gained every six months.
Zulu has always been passionate about starting her own business. With her love for organic skincare products, she used the savings interest from the stokvel to start her business. The pandemic has caused a lot of financial burdens, causing people to think twice about how and where they use their money.
Zulu says she believes that starting a business is about taking risks, that thought did cross my mind more especially now with the outbreak of COVID-19, people are looking for cheaper and quality products for their skin.
Zulu is a teacher by profession, has more time to establish her business profile and register her own company while also seeking different products for her clients since schools closed due to lockdown.
Stokvel financed business helped during COVID-19
I started this business because in these economic times, relying on one income is sufficient instead of spending the interest money I get from the savings and thought let me use it as start-up capital for my business, Zulu tells Stokvel Talk.
Since she started her business in March, she uses 30% of her profit to save back into the savings and does not have to worry about not saving every month.
Presently, a lot of people are losing their jobs, we see people pulling out from stokvels and savings, and that is why I decided to use the interest money to generate an additional income for me.
So far, the business is doing very well because it doesn’t require too much from me. It has helped me a lot more since I do not have to do the running around except when I have to courier my products.