I’m honestly pissed off about how many companies through out Kuwait are trying to be Pro Entrepreneurs when they are all the same presenting the same offer. Let me explain the original story: One day some guy in the government woke up and said hey lets help out entrepreneurs in Kuwait establish business by providing them 50% of the funding. So they did and gave the industrial bank of Kuwait a 50 million kd fund for them to finance Kuwaiti entrepreneurs, what happened is the typical Kuwaiti business model of using the money for other purposes and when entrepreneurs apply for financing, they get bombarded with rules, requirements and papers to apply for such a loan. So now after years of failures and mishaps from the Kuwait Industrial bank and Small Projects Co (Masharee3 esagherah) the same amount of money is being forwarded to Kamco and other small companies like AlRaeda. They all provide the same exact financing and when applying for financing a venture you get to wait ages until they respond back, again and again wasta too is a prerequisite. So what do these companies do with such amounts hanging in there balances (50m) they get interest or use them as Fixed Deposits etc etc you name it. Then back to square one, the entrepreneur benefits nothing! Cant we have a company with a real concern to fund entrepreneurs all the way, angle investors are all over the world but it seems here in Kuwait they only want to benefit one part of the equation. Kamco claims innovation, i cant see any!Â
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October 25th, 2007 at 4:05 pm
Hmmm… Are you saying it’s a wrong move to go though any of the mentioned companies?
What if you go directly through the industrial bank? Or is that al mashro3at al 9aqheera?
October 26th, 2007 at 2:35 pm
Blue Dress: well its not wrong, you sure can but you need to own 50% of your company and forget the industrail bank because they provide a loan and not like the others if the venture goes bad, you have to pay them back.
November 5th, 2007 at 10:04 am
i am in the banking industry, in particular the credit business so i know exactly what u r talking about and i totally agree. Banks usually dont fancy funding newly established businesses, they prefer those which generate most profits. I once asked why not fund new businesses which seem promising, and they responded saying 9 out 10 of them will fail and the bank will be slapped with losses, so better not to venture into that.
As for those businesses that u r talking about, i doubt any out there care to support other businesses. Each wants to increase its own profits. I dont approve but that is simply the way things are done.