THE CHALLENGES IN FINANCING SMALL BUSINESSES IN EXPANDING THE FRONTIERS OF ENTREPREUERIAL DEVELOPMENT

Igbaekemen Goddy Osa (PhD)

Abstract


It is important to ask this cogent question as it relates to start-up business on entrepreneurial development in Nigeria.  The source of finance can be categorized into three distinct classifications, namely, short, medium and long term while according to, source of finance can be classified into two, that is short and long term. This source is largely found to be inadequate for promotion of expansive enterprise to meet those need without adequate funding the best dream will fiddle away and innovations will have still-birth, finance is the grease that nurtures innovation to fruition. It is an essential ingredient to start-up business success hence this research has therefore explained various means of obtaining needed funds as serve as eyes opener to entrepreneur to take advantage of less talked sources of finance, for short term funding in startup business. It has been explained that most appropriate should be funds that repayment will be conducted with less than three hundred and sixty-five days, while capital projects should be financed by fund with maturity period over three years. This research has also brought it to burner the opportunity of financing lease while early period equity funding should be through capital venture in the business which is available through the Small and Medium industries Equity Investment Scheme. The major finance issues of this research is the fact that it goes beyond identification of problems but suggest home grown strategies to redress this which if well embraced will not only be a welcome startup business development for Nigerian entrepreneurs but also other developing economies of the world.

Keywords


Challenges, Finances, Small Businesses, Expanding Frontiers, Entrepreneurial Development.

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