While donor support can be invaluable, it also presents certain challenges, including:
Sustainability: Donor funding is often project-based and may not provide long-term financial sustainability for the venture. Dependency: Over-reliance on donor funds can create dependency, making it difficult for the business to operate independently. Restrictions: Donors may have specific requirements or restrictions on how funds can be used, limiting the entrepreneur’s flexibility. Competition: Securing donor funding can be highly competitive, requiring significant time and effort to stand out.