Entrepreneur Mohamed Nagaty Warns Youth Against Relying on Bank Loans in Early Startup Stages

Monday 19 January 2026 09:14

Entrepreneur Mohamed Nagaty has issued an important warning to young people aspiring to enter the world of entrepreneurship, urging them to avoid relying on bank loans during the early stages of launching startups.

During his interview on the television program “Kalema Akhera,” Nagaty explained that while bank loans may appear to be a quick solution for securing funding, they carry significant risks that could lead to the failure of a startup before its business model becomes clear.

He noted that startups are naturally unstable in their initial phases, making loan repayments and interest obligations an added burden that distracts founders from focusing on product or service development.

Nagaty stressed that bank loans place entrepreneurs in a constant race against time, often pushing them toward rushed decisions that may harm the project’s long-term sustainability.

In this context, he highlighted several lower-risk financing alternatives, including self-funding, angel investors, and participation in business incubators and accelerators, which provide not only capital but also mentorship, guidance, and essential resources for growth.

Nagaty concluded by emphasizing that patience and gradual growth are the cornerstones of successful entrepreneurship, calling on young founders to build their ventures on solid foundations rather than being tempted by quick-fix solutions.