How to Raise Funds/Money For Business in Nigeria.
Raising funds/money for business has always been a problem. this problem has brought to a hunt many entrepreneur dreams.
thousand of people has dreams but just 5% are able to attain that dream because of the lack of funds and capital.
In Nigeria today people are always scared to approach the bank for help be it to load or grants because over 98% of the time they will reject your request. it does not matter if you have been banking with them all your life this is because they think they are into business and not charity.
not to worry there are lots of ways you can get funds/money for business. some of this businesses will require you to pay within your agreed time while others will receive a cut of your profit for an agreed duration.
some source of income will not take the money the will give you for the business back but will attach some conditions while giving you the money. some of this condition could be that you must employ a certain amount of staff, another could be a restriction to the place of establishment (that is within a state) and so many conditions of such.
below are some ways you can get funds/money for business
This first and most common, I can say it is a plus to any other method of getting funds/money for business. you need to add your savings to what every source of income you may get for your business to show a level of seriousness.
it is also possible that you will use the money you save without waiting for anybody or organization for money/funds for your business.
most people will say it is not possible to save money that will amount to a huge some for your business. if you are thinking it is not possible then you will have to read this post, it analyses how to make or save a million with a year, 2 years etc.
family and friends:
Family and friends are a great source of getting startup money/funds for your business. To get family and friends support for business they will want to be sure that you will utilize the money you collected from them judiciously.
though most people will disagree with me on this I think you should add family money no matter how small to your startup capital REASON (they will always ask to know how you are doing and how far you have gone.
some persons will say “family members will say they supported me during my startup stage” alright, for me, I don’t see anything wrong if they talk it’s just normal.
You can get some percentage of the startup funds/money for business is you open the door to a partnership.
you might have the idea and don’t have money while someone else will have the money without the idea if you talk with people about your business some of the might be interested and want to partner with you.
a partnership is not restricted to a specific amount of persons, you can have up to 5 persons that are ready to partner with you on the business. you must let every one that wants to partner with you one the business know the number of people that are partners with you (some persons like to do things with individual and not masses).
There are a lot of NGO (Non-Governmental Organisation) today that are ready to help people with a dream to actualize them.
some of these NGO will require you to pay back after some time while some others will not ask for a refund.
to get funds/money for business from NGO will be easier and better if are already a member for some time.
Grants are one of the most comfortable sources of getting funds/money for business if you are really ready. I said if you are ready because of some factors it might look before giving out money to you.
your business plan for the business
have you started anything on it yet?
how long have you started?
how much effort do you give to what you do?
these and many more factors are what you should ask yourself before going to an NGO for a grant (except you have someone that works there).
below are some of the place to go for grants in Nigeria.
1. Tony Elumelu Entrepreneurship Programme (TEEP).
The Tony Elumelu Entrepreneurship Programme (TEEP) is a yearly programme launched by one of Nigeria’s business tycoon Mr. Tony Elumelu via Tony Elumelu Foundation (TEF). The program launched in 2015 is aimed at providing 10,000 USD seed funding for entrepreneurs across Africa. Every year, the programme selects 1,000 entrepreneurs across Africa from a pull of over 50,000 applicants.
2. YouWIN Connect Nigeria.
YouWiN! Connect is a multimedia programme of the Federal Ministry of Finance. The programme aims to promote entrepreneurship, job creation and wealth via enterprise education for young Nigerians. Nigerian entrepreneurs will enhance their productivity through relevant SME development tools. These ventures are promoted by young Nigerians in target sectors that align with the government’s objective of diversifying the economy and promoting competition and transparency
3. Bank Of Industry (BOI).
The Bank of Industry (BOI) recently launched a youth empowerment program for young and talented entrepreneurs looking to venture into various sectors of Nigeria’s economy. The Youth Entrepreneurship Support (YES) Programme is BOI’s effort at addressing the worrisome phenomenon of youth unemployment in Nigeria by building the capacity of the youths and funding their business ideas.
4. GroFin Fund.
GroFin is a pioneering development financier specializing in financing and supporting small and growing businesses (SGBs) across Africa and the Middle East. GroFin combines patient capital and specialized business support to grow emerging market enterprises.
GroFin Focus on Small and Growing Businesses (SGBs) that are grossly underserved by other funds or financiers. Delivers a unique integrated solution for patient risk capital and end-to-end business support to start-up and growing businesses at the SME base. GroFin has fund size of US $100+ Million to funding Nigerian micro, small and medium business (MSMEs) across the country.
5. Diamond Bank BET Programme.
The Building Entrepreneurs Today (BET) is a programme designed to support budding entrepreneurs. Every year, 50 entrepreneurs are selected from the pool of the numerous applications received and these entrepreneurs undergo a six (6) months of intensive entrepreneurial/business training. At the end of the training period, the Top Five (5) Entrepreneurs are awarded financial grants as seed capital for taking their business to the next level.
6. AYEEN Financial Grants1.
Africa’s Young Entrepreneurs (A.Y.E) is committed to empowering young entrepreneurs across Africa by creating platforms that facilitate intra-trade on the continent. We are dedicated to developing the next generation of outstanding African entrepreneurs, who will shape the economies and political landscapes of their home countries.
7. Lagos State Entrepreneurs Trust Fund (LSETF).
The Lagos State Employment Trust Fund (LSETF), was established by The Lagos State Employment Trust Fund Law 2016 to provide financial support to residents of Lagos State, for job, wealth creation and to tackle unemployment. LSETF serves as an instrument to inspire the creative and innovative energies of all Lagos residents and reduce unemployment across the State. The Fund has the mandate to directly invest ₦25Billion in helping Lagos residents grow and scale their Micro Small and Medium Enterprises (“MSMEs”) or acquire skills to get better jobs.
See Also: Top Reasons Small Businesses Fail
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