Funds are needed in every stage of entrepreneurship and in any scale of business, whether small or large scale. There are various ways that young entrepreneurs can source for funds in Nigeria:
Personal savings
This is the first source of fund for your business that you should consider before exploring other sources Investing your own money first shows how serious you are in raising funds. If you can’t invest in your business then no prospective investor and grant donor will do so.
You must trust your business enough to invest with your personal savings before others can do same
Family & Friends
The next consideration will be your friends and family. As an entrepreneur you can get grant or loans from your loved ones who believe in your business idea.
Central Bank of Nigeria’s schemes
The Central Bank of Nigeria from time to time as well, launch entrepreneurship support inititaives in the country. Some examples include Anchor Borrowers Scheme, Tertiary Institutions Entrepreneurship Scheme (TIES), Youth Entrepreneurship Development Programme, Nigeria Youth Investment Fund (NYIF), etc.
Bank of Industry
The Bank of Industry (BOI) provides access to funds for startups, SMEs, MSMEs, and large enterprises. It facilitates the entire process, right from pre-loan application.
While some of the loans are a Federal Government of Nigeria initiative, they are designed to provide subsidized loans and an all inclusive interest rate. With the vision of providing financial support for the development of micro, small, medium and large businesses, BOI focuses on businesses that engage in manufacturing, processing, Oil and Gas, information technology amongst others. It is the largest and oldest financial institution in the nation.
READ ALSO: 8 Things You Should Know To Help You Secure a BoI SME Loan
Empowerment programs
Governments at different levels from time to time roll out entrepreneurship empowerment programs. In such programs, you can expect benefits such as training, mentorship, grants, etc.
Business Grants
Business Grant is one the popular ways that young people can source funding for their businesses. Business Grants are different from loans in the sense that you are not going to pay back. In order to access business grants, you have to show an innovative business idea with a lot of potentials. Some business grants platforms are Tony Elumelu Foundation, AYEEN, Lagos State Entrepreneurs Trust Fund, etc.
CrowdFunding
If your business has a dedicated following, you can launch a crowdfunding campaign using a platform such as GoFundMe. When launching such campaigns, ensure you include the cost of rewards in your budgeting process.
