The History of Banking [Video]

Vusi Thembekwayo on banks and the history of banking.

Misconceptions about the banking system abound, with many individuals mistakenly believing that banks exist solely to fund their entrepreneurial dreams. However, the truth is far more nuanced…

Banks are not in the business of financing ideas or ventures; rather, they operate primarily as providers of debt instruments, not equity. Unlike venture capitalists or angel investors who exchange capital for ownership stakes in a business, banks offer loans and credit lines that must be repaid with interest. Understanding this distinction is crucial for aspiring entrepreneurs seeking funding for their ventures.

While banks can be valuable sources of capital for established businesses with proven track records and collateral, they are less inclined to take on the risk associated with early-stage startups or unproven ideas. Instead, entrepreneurs should explore alternative financing options, such as equity investment, crowdfunding, or bootstrapping, to fuel their innovative ventures.

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