SOURCES OF FUNDS AND MISCELLENEOUS ASSISTANCE FOR NEW BUSSINESS MEN IN UBULU UKU Small business and entrepreneurship form an integral part of a healthy economy.In recent years,various factors such as the impact of privitization and specialisation in industry and coperate restructuring and downsizing,as influenced by new management theories,have combined to encourage the emergence of more new ventures and medium sized companies.The valuable contributions of these small bussinesses are widely recognized by all sectors of the society,as can be seen by the many efforts to aid small businesses taking place at the federal,state and local levels.Such efforts includes new rules and regularions filed by various institutions such as small and medium enterprise development agencyOf nigeria SMEDAN,Bank of Industry,central bank of Nigeria,microfinance institutions as well as restructuring of tertiary institutions and business school curricula to include the study of small business entrepreneurship. Yet,inspite of the increased awareness,recent development indicates that access to capital continues to bE the most difficult challenge for new business venture or any organisation.There are several reasons while even under optimal conditions,business men are still not successful at getting adequate funding.Banks by the very nature of their business,are resistant to high risk loans,which loans given to many small businesses represent.Potential businessmen may also lack the business know how to articulate what they need in business terminology.Factors such as these contribute to the decision of a would-be financing source,not to commit money to a particular new venture Sources and Types of Funding For A New Business Venture Business men and companies are constantly on the search for new capital and it is seldom easy to come by.Top businessmen understands that raising money is a way of life.Experienced businessmen realised that financing companies are done in stages and they have to be flexible in identifying the latest trends in financing.Many first timers erroneously believe that they can successfully generate sufficient cash flow on a near term basis.They bootstrap their way to financial success.This does not work in todays fast moving business climate,especially in many medium and high tech areas. However the major forms of financing a business venture are as follows; PERSONAL RESOURCES This may be the businessmans savings or inherited wealth.there is significant evidence globally that businessmen depend on personal savings to finance their new venture.This is because the cash is readily available and can be mobilised easily and quickly.. Another sources of financing a new venture is through loans from family,friends and associates. 3..Partners and associates 4...Rotating saving scheme and money lenders 5..Trade credit and Accruals 6...Hire purchase 7...Financial Lease 8...Bank Borrowing 9...Debentures 10...Stock/equity financing. The above listed are ways a young businessman can actually raise money to start up a bisiness.It isnt hard,so simple,just go ahead and start that bisiness you wanna start
Posted on: Wed, 19 Mar 2014 05:37:42 +0000
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