Young promoters and seed capital

Today young promoters, especially those living in developing countries, experience more and more difficulties in their way to find seed capital to set up their small businesses. Which reasons can explain this situation? Has this situation any consequences? Which solutions can we put forward to help them? Setting up small businesses which can help them have financial resources and be independent is one of the major goals of a great deal of young promoters. But getting seed capital to do it seems to be an insoluble puzzle. Why? First, these young promoters most of the time don't have any bank account and personal funds reaching at least 30% of their small business projects. In this case, almost all commercial banks refuse to grant them loans. Secondly, the total cost of the small business projects deters very often microfinance institutions from granting them the loans they ask. In fact, this one generally ranges from $2000 to $10000. Thirdly, some business projects are not realistic at all or are too ambitious to be financed by a commercial bank or a microfinance institution. Finally, getting seed capital especially in the Internet is very difficult because most investors are too distrustful. Moreover, there are many cyber-crooks ready to cheat them mercilessly if they are not careful. One of the logical consequences of this situation is that young promoters cannot set up their small businesses for lack of seed capital. As a result, they are obliged to continue to live with their parents, since they don't have any financial resources to become independent. Which is not easy, especially when you are an ambitious young man! Now, here are some solutions which can be put forward to solve the situation. It is not the panacea, but it is better than nothing. First, commercial banks and microfinance institutions have to revise their policies towards young promoters as far as seed capital is concerned. Then, young promoters themselves have to make efforts to save little money either in a bank or in a microfinance institution in order to facilitate their access to loans. Finally, investors in the Internet should be a little kind to help only honest young promoters who ask them for a refundable seed capital. For instance, they can give them a part of the equipment they need as part of the setting up of their small businesses.