Raising capital for any business is a big challenge. This is especially true for Small and Medium Enterprises (SMEs), where operators and would-be operators find it very difficult to access loans from the bank.
But there are other ways to raise fund to start-up your business. Money from family and friends, Mr. Emmanuel Shay, the MD Shay associate said that you should not wait for a loan from the bank.
Leverage on your relationship with family and friends“A lot of times, you don’t even need bank money,” he said. “Sometimes, if you have a good relationship with family members and friends who can borrow you money, you can get fund.
Sometime ago, someone borrowed me N5m without collateral. Leverage on those you have around you and friends. But, you must pay back the debt.”
Through internal contribution (adashi) you can get some money to start a small business. Mustapha Usman, a trader at Jalingo Market, said that he started his business from such. “I started my buying and selling a business from a contribution I was doing,” he said. “When I got mine, I used it to buy grains for sale. Now, the business has grown, and I am selling bags of rice.” Start small, even with pocket money/stipend.
Rose Agya, an event planner, said: “I did not wake up to be an event planner. I started by selling clothes in my brother’s car. During semester break I used my pocket money to buy clothes. I will drive to offices and pop the trunk open and sell. From the profit I made, I diversified to other business.” Savings.
Mr. John David M. John David, CEO of Hullintton Ltd, an oil servicing company, said that he started from savings he made while he was working with an oil company, adding: “I saved 10 % of my salary when I was holding a paid job. This is what I used to start, and the business is growing.”
The Executive Secretary, National Co-operative Financing Agency of Nigeria (CFAN), Mr. Emmanuel Atama, says entrepreneurs can also start a business by forming cooperative.
He said: “If entrepreneurs form clusters and pull resources together like a cooperative, they can start a business. Because each contributes their quota to make the business stand. In
Ghana, the cooperative form of owning a business is very common, and it works for them.”