One of the major problems every business person faces is capital. They spend the bulk of their time thinking on “How to raise capital for their business ideas” and “How to get money to expand their business operations”. What if I tell you there are various business grants for small businesses in Nigeria.
Business grants are essential for the survival of small and medium enterprises in Nigeria. Business grants provide the necessary funds for new to start their business and for existing businesses to expand their business.
What is a Business Grant?
A business grant is a sum of money given to businesses. To help in starting their business or expand their business operations, without having to pay back. These grants are usually provided by governments, large corporations, foundations, or trust.
Different business grants target distinct business sectors and geography. You will need to demonstrate a great deal of thoughtfulness in writing your business plan because you will be judged based on it.
Difference Between a Business Grant and a Loan?
There are a couple of differences between a business grant and loan. Below are some of them:
- With business grants you don’t have to pay back while you are required in a business loan with interest. Consider a business grant as a gift.
- Secondly, You will need collateral to access business loans while this is not required for a business grant.
- Business loans are more available than grants. You can get them mostly whenever you need them with various organizations and banks. While grants applications are mostly open once a year. Once you miss the application deadline, you need to wait till the next round of application before applying again.
- Business loans are more risky than grants. After obtaining a loan, when you are not able to pay it back. There will be trouble with the bank/organization. While in business, you don’t even need to pay back. Therefore there is no risk involved in grants.
5 Business Grants for Small Businesses in Nigeria
1. Tony Elumelu Entrepreneurship Programme (TEEP)
The Tony Elumelu Enterprise Grant is the leading champion of entrepreneurship in Africa. It was established by Tony O. Elumelu (CON) in 2010. Tony O. Elumelu is an African Philanthropist, Investor and Entrepreneur who is passionate about Africa’s economic development.
The grant is provided by the Tony Elumelu Foundation (TEF). The foundation has empowered over 9,000 entrepreneurs and supported a million individuals in 54 African countries.
TEF’s purpose is to provide 10,000 aspiring African Entrepreneurs to profit from a $100 million grant and create a million jobs that will contribute $10 billion to Africa’s annual revenue, improving its economy over the next ten year.
TEEP focuses on empowering young entrepreneurs in Africa with mentoring, training, and funding. It is one of the most consistent business grant for small businesses in Nigeria.
2. Bank Of Industry Youth Entrepreneurship Support Program
Bank of Industry Youth Entrepreneurship Support Program is another business grant available for SME in Nigeria.
It is created by the Bank of Industry to address the high youth unemployment in Nigeria by starting and equipping young people with the requisite skills and knowledge to be self-employed by starting and managing their own businesses.
To apply for BOI YES-Programme, you must:
– Must be within the ages of 18 – 35 years.
– Must have an innovative business idea.
– Minimum education qualification of an Ordinary National Diploma.
3. African Women Development Fund
African Women’s Development Fund is a pan African business grant aimed at helping female entrepreneurs with funding. They provide business funding for businesses in the following areas:
- Body & Health Rights
- Economic Security & Justice
- Leadership, Participation & peace.
Their eligibility criteria are:
- Must be duly registered in an African country.
- Must be up to 3 years in Business.
- Must be led by a woman and have the majority of its staff and board being women.
This is a women-only grant that focuses on innovative projects addressing the needs of women in the community.
4. Seedstars Africa
Seedstars Africa offers business grants for Small and medium entrepreneurs in 53 countries worldwide, including Nigeria. They support entrepreneurs and online businesses in African countries with funds.
Interested Applicants will have to compete in the yearly business competition by Seedstars Africa. They invest in high growth businesses in over 90 emerging markets through their business grants.
5. Savannah Fund
Savannah Fund is another grant opportunity for SME business owners to raise capital for their business. They give business grants to African entrepreneurs to help them
Savannah has generated over $8 million as it focuses on high growth technology startups in Africa. They support Africa entrepreneurs from Kenya, Nigeria, Ghana and other African countries.
It seeks to bridge the gap between venture capital investment and early startup in Africa.
There you have it. Those are the 5 Business Grants for Small Businesses in Nigeria to checkout in 2021. Do you know of any business grants for small businesses in Nigeria? Let me know in the comment box below.