There are over N42.3bn in Business Funding Available For Smart Nigerian Business Owners; Here are the Top Five
- Business funding has always been the major impediment to start-ups, as not fewer than 90 per cent of new businesses fail during their first year of establishment
- But there are opportunities that give smart business owners to take their ideas to a greater new level
- The opportunities are not exhaustive but there are five options businesses could explore in sourcing funds
At some point, even the most healthy companies will need business funding. For startup companies, the funding is even more urgent.
There are several options available for entrepreneurs, but certain requirements must be followed in order to get these funds.
Some of the requirements are as little as having a business and ensuring that it is providing a solution to a problem in society.
More so, the start-up should be clear on where he/she wants to be in the near future and be able to describe the market he/she plays. And the entrepreneurs should have good bookkeeping to accurately know their revenue and the expenditure
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List of funding options for startup companies
Tony Elumelu Foundation Fund
The Tony Elumelu Foundation (TEF), Africa’s leading philanthropy has empowered 200,000 entrepreneurs across 54 African countries with seed funds of $5,000 each.
Tony Elumelu Foundation has empowered 9,631 entrepreneurs from across 54 countries of Africa with seed funds of mostly $5,000 each.
A few years ago, Elumelu set aside $100 million for African entrepreneurs. If you are in agriculture, fashion and design, light manufacturing, ICT, and solid minerals, among others, then you may apply for the ongoing Tony Elumelu Fund. You can be one of the 1,000 lucky entrepreneurs to be shortlisted for 2022 as the application is currently ongoing to close on March 1, 2022.
Jack Ma Africa’s Business Heroes
Africa’s Business Heroes (ABH) is the Jack Ma Foundation’s flagship philanthropic program in Africa to support entrepreneurs.
The program is open to entrepreneurs from all 54 African countries and will see the top 10 finalists share the $1.5 million grant money yearly.
It is a 10-year programme that will recognize 100 African entrepreneurs and provide grant funding, training programs, and broader support for the broad African entrepreneurial ecosystem.
The application opens in April and closes in June yearly.
Lagos State Employment Trust Fund
The Lagos State Employment Trust Fund (LSETF) has a capital base of about N11.1 billion and has disbursed loans worth N8 billion to no fewer than 12,000 micro, small and medium scale enterprises.
Its fund is divided into three categories: micro and small businesses. Under the micro, businesses can access up to N500, 000 loans with an interest rate of five percent and a tenor of one year. For the small business category, businesses can get up to N5 million with a tenor of three years.
The loan cycle is open all through the year. You simply visit the website or their office at the Lagos state secretariat to apply with relevant documents.
Angel investors
For those looking for N10million to over N100 million, angel networks can come in handy. Networking is critical here, and you need to find angels who understand your industry and share your passion.
To get started, go to www.AngelSoft.net and look up the group nearest you.
Financial institutions -MfBs, Banks, BoI
SMEs can source funding from financial institutions, although, the interest payable varies from one institution to the other. Bank of Industry offers loans to SMEs at a 9 per cent interest rate, while commercial banks rarely provide loans for SMEs because of the perceived risk and uncertainty.
Others funding options
- Tertiary Institutions Entrepreneurship Scheme (TIES) by Central Bank of Nigeria
- The Youth Entrepreneurship Support (YES) Programme is BOI’s effort
- GroFin Fund
- YouWIN Connect Nigeria program is a multimedia programme of the Federal Ministry of Finance
Shuttlers gets N616.1bn from foreign investors, As TeamApt reveals
Meanwhile, Legit.ng had earlier reported that Foreign investors continue to invest in Nigerian entrepreneurs with innovative ideas.
Shuttlers, a bus company, is the most recent to get funding, and it will join the ranks of other Nigerian digital start-ups that have scaled up after investment.
TeamApt, one of the successful foreign investor-backed businesses, is now raising its third round of funding in order to boost its market value to over $1 billion.
Source: Legit.ng
