Entrepreneurs with smart business ideas have a chance to turn their dreams into reality through GroFin's business model of financing start-ups. GroFin, a finance company, which has been in operation since 2005 lends to new businesses that lack security but is actively involved in management of the company.

While launching the 450-room luxurious Nana Hostels recently, one of the establishments the company has recently financed, Mr Stanley Ndyabahika, the business development manager of GroFin, said the company focuses on providing business support and risk capital to small-and medium-sized enterprises in emerging markets under-served by traditional sources of capital. "We integrate business development assistance and structured debt and equity investments to support locally owned start-ups and growth enterprises to reach sustainability," he said.

Mr Tom Kaya, the owner of Nana hostels said he turned to GroFin after he had failed to secure funding from a number of banks to put into an investment now estimated at Shs3.6 billion. "I could not believe that my dream would become true," he said.

GroFin has so far invested $10m in Uganda. While other financial institutions request for security, and huge sums of deposits, Mr Ndyabahika, said the company pays close attention to the viability of the business. "I should stress that we are liability based business developers. We do need security, but that is a secondary consideration," he said. "We are flexible on how we get back our interest."

Mr Ndyabahika said the business owner can start paying once the business has taken off. The re-payment period and the interest one pays depend on the size and progress of the business. "One can pay three or two times in a year, while another one can pay say six times a year. It depends how one's business is progressing," he said. "We are flexible on how we get back our interest."

Besides financing start-ups, GroFin offers assistance in the area of business development in emerging markets through training and advising the client. GroFin has financed a number of businesses in manufacturing, trade, energy, and real estates. GroFin has invested in enterprises in South Africa, Kenya, Uganda, Tanzania, Rwanda, Nigeria, and Oman.