Starting your own business is one thing while source of finance is another. Entrepreneurship over the years has one major particular and common challenge which is finance. Today my post will be all about how entrepreneurs get money from to set up their business's to a high standard.
Family funding/Financing: sometimes an individual can call for a family meeting and the his/her plans to go into entreprenuership but is having a financial challenge. There and then, each member of the family might come up with a financial pledge to assist the brother or sister. In otherwords, it means family members coming together to raise funds.
Fellowship: sometimes where we worship, our church can help us raise money to finance our business.
Personal savings: this is one of the most popular way of an individual raising money for him or herself. It means saving towards a plan.
Cooperative: monies put together by members that can equally be given out as Lepanto any of their member. You must be aember to be a beneficiary. Cooperative have shown to be one of the greatest source to raise funds for people doing small businesses.
Banks: Deposits in bank, Afro banks, bank of industry, merchant bank etc. have the responsibility to make available funds for entreprenuership. Although the banks are mindful of who they give put their monies to.
Smedan: this is an acronym that means small and medium enterprises development agency of Nigeria. They are also sources of financial entrepreneurship.
Why cooperatives has become the major source of funds for entreprenuership
Most of the cooperative do not have much collateral like banks. They just ask for little terms as collateral.
The interest rate are not much like the ones of formal institutions.
There is psychological dispositions or relationship that doesn't bring fear to the minds of the people who borrow from them. The cooperatives know their customers well in terms of any transaction, they know their customers down to their family.
Note: The banks have more investment compared to cooperatives.