How to raise capital for a small business in Nigeria


Raising capital to start a small business in Nigeria is not easy. For some, it can be a smooth journey and for the majority of people, it is not. I aim to help you close that gap. 

I will be highlighting the ways you can get capital for your small business.

1. Family & Friends 

This is one of the oldest ways of raising money to start a business, you can ask family and friends for donations to raise your start-up or loans as well. If you have a good relationship with money, the chances of this working are high because they trust that their money will be well accounted for. 

2. Small business loans 

There are different ways to get small business loans, from Government loan programs, banks, fin-tech companies, and other private sectors, as the case may be, all provide business loans to entrepreneurs seeking funding to start or grow their businesses. 

Pennee is a great example of a Fin-tech company that provides small business loans, asset loans in particular. 

3. Business grants 

A business grant is a sum of money granted to a company to assist them in growing their business. Governments, businesses, foundations, and trusts are usually the ones who distribute them.

They are also not easy to get so you need to be dedicated to the process of getting a grant. 

4. Venture Capital or Angel Investors

Venture capital is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which have demonstrated high growth.

An angel investor is a person who contributes funds to a startup company in exchange for convertible debt or equity ownership.

5. Local co-operative societies

People frequently join cooperative organizations and borrow to fund their businesses. They do money sharing in turns, with members receiving a large portion of their savings to start a business with

Local co-operatives have long been recognized as a source of business funding in Nigeria and are still being used now. 


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