Ideas rule the world! Isn’t that what they say? But a great idea without funds to bring it to reality is just a wishful thought. Funding is a major problem that entrepreneurs face in Nigeria.
A comfortable source of accessing funding for a startup is cooperative societies, where people contribute a little amount of money every day until it gets to a time when they can take their money, based on the agreement. This money is called owner’s equity. Members of a cooperative society can apply for loans, when in need of money.
In a bid to assist entrepreneurs and create better conditions of living, government and non-governmental organisations offer grants to small business owners. These grants are accessible by entrepreneurs and enable them to expand their businesses. There are various grants offered in Nigeria, which are accessible by entrepreneurs.
With a good business plan, entrepreneurs can approach business investors, who will provide funds for their businesses, with the aim of making profit. A business investor can become your partner, based on the laid down agreement between the both of you.
Microfinance credit provides funding for small business owners, who do not have access to the major financial institutions. It is describes as banking for the less privileged. Entrepreneurs can have access to these funds for their startups and businesses in Nigeria.
Commercial banks in Nigeria have been in the business of funding startups, right from the word go. However, this should be your last resort in getting funds for your business in Nigeria, as a result of the many strings attached to such loans.
In order to be eligible for these funds for your business, you have to come up with a well written business proposal which should contain your business concept, financial features, financial requirements, current business position, major achievements, benefits, credibility etc. These elements should be comprehensively written, for the understanding of the receiver.