One of the most difficult challenges in starting or running a business in brunei or in any other country is funding. funding for starting up, running, or expanding a business. If you ask any SME owners and they would say any of these things:
- There are no funding.
- difficult to find,
- there are funding available, but difficult to obtain
I come under the 3rd category. So when I considered starting up my business, I gave up on financing, and decided to start it cheap. Among the problems that I had were:
- Loans require guarantors or collateral, it is easier to get a guarantor to buy a car, rather than to start a business. You could be a guarantor yourself. A guarantor is usually recommeded if they a government employee or an employer of a big company e.g. shell.
- Writing a Business Plan. This was easy to learn to make, but a lot of work to do it right. especially if you have to put in the quoted numbers for the stuff you need to spend on for start up capital. not too mention the marketing and the financial forecast that you have to do.
The existing funding that I know is as follows:
- SME financing scheme from MIPR. this applied at BIBD and Baiduri, but the confirmation comes from MIPR. This funding is for startups, expansions and project basis.
- The SCB business Hire Purchase loan, this is mostly for funding existing business. Minimum of 1 years, and recommended if you kept your accounts in SCB.
- BEDB YDR Grant Scheme offered to youths that graduated from the Youth Development Centre (YDC). This is a grant and repayment is not required.
Recently in July 2010, there has been some news on new financing available, among them are:
For either of these, information about the grants are available from the website. There is also a briefing held for both of them. I will probably attend both to get more information and weigh my choices.