small enterprise and sources of funds by okoronkwo sunday

A Paper Presented by Okoronkwo Sunday, E-mail [email protected]. Tel.08068142697, 07026090135

“SMALL SCALE ENTERPRISE AND FUNDING SOURCES”

A Paper presented at the 2010 Train –the- Trainers of Sunday school and House fellowship

Teachers at the R.C.C.G. Regional Headquarters, Central parish.

Text: Gen. 30:25-43, Pr 24:3-4(LBT).

INTRODUCTION:

Thus the man (Jacob) increased and became exceedingly rich, and had many sheep, goat, and

maidservants, menservants, camels and donkeys (Gen 30: 43 AMP).

Producing glory is Gods purpose for our lives (1 pt.2:9). It is especially so for us teachers since the

best way to teach is to live what we preach (Ezra 7:10).

We are to manifest His glory in every area of our lives, including our finances, (Ps. 35: 27, Duet.

8:18).The desire to produce Gods glory financially, should lead any serious minded Christian to own

his/her own business enterprise (Ps. 1:3) thus creating an opportunity/avenue for God to pour His

blessings upon such a one, just as Jacob showed us in our text that you cannot become exceedingly

Rich by working for others (Gen 30: 30, 33-43).

For the purpose of this paper we will be looking at the following points which will help us understand

what a small enterprise is and how we can get money to start or expand our enterprise:-

1. Definition of Micro, Small & Medium Enterprises (MSMEs).

2. Meaning of small scale enterprise.

3. Characteristics of small scale enterprises.

4. Advantages of owning a small scale enterprise.

5. Challenges facing small scale enterprises.


6. Funding sources for small scale enterprises.

1. Definitions: Micro, Small and Medium Enterprises (MSMEs)

You can not talk about small Scale enterprises without mentioning Micro and Medium Enterprises, and so

we will start by defining each of these types of enterprises, measured by their size and asserts value.

The definitions of MSMEs then in the Nigerian context are:

Micro-Sized Enterprises: are Enterprises with Less than 10 employees and asset value of less than one million naira.

Small-sized Enterprises: usually in the formal sector has less than 100 employees and assets value over one million but less than 50 million naira.

Medium-sized enterprises: are Enterprises that has over a 100 but less than 300 employees and assets value of over 50 million but less than 200 million naira.

From these definitions we find out that most business here may fall under the Micro Enterprise rather than the Small Scale Enterprise so I think we will over look some of these terminologies and just focus on owning and running a business Enterprises no matter how small or big.

2. MEANING OF SMALL SCALE ENTERPRISE

Generally, a Small Scale Enterprise is any firm, or an Establishment that has a small number of employees, a low volume of sales, a small amount of assets and has a limited impact on the market. Examples; Poultry farm, Furniture making, Supermarkets, Cobbler shop, Doll making, fashion and design, interior decoration etc.

3. Characteristics of Small Scale Business Enterprise

The small business Enterprise has the following characteristics:

Size: Small business premises, low technology and basic equipments

Operation process: few individuals are involved in decision making, Maintenance is easy and it has few staffs to oversee

Investment: start up capital is usually small thus gross and net returns are also small too.

4. Advantage of owning/running a Small Business Enterprise

Owning and running a small enterprise delivers tremendous benefit to any who will engage in it. Jacob almost left Laban, empty handed (Gen 30:25, 30) but thank God he started working for Himself while working for Laban. That is, while working for another he was also running his own Enterprise, what we can call, a second income generating business. He engaged himself in investing the skills he had acquired from his job for legitimate financial blessing (Gen 30:43, Pro. 24:3-4 LBT). Any diligent small enterprise owner will enjoy the following benefits:


Improved self-esteem

Increased personal and family income

Employer of Labour, there by reducing the high rate of unemployment

Provision of goods and services thus meeting the needs of others in exchange for their money.

Positive contribution to economic growth

Increased revenue for government to provided basic amenities and infrastructure etc.

5. Challenges of Small Scale Enterprise

Challenges Solutions

Lack/Inadequate capital Improve business plan and Seek other sources of funds

Low patronage Make More effort in marketing and promotions

Investigate suitability of goods and services

Poor record keeping Acquire management, administrative and record keeping skills and dedicate the amount of time required to make it work.

Too much stress Solicit support from family members/ Hire additional staff to assist.

Lack of government support Find out about available government Assistance and explore It. Identify means of obtaining Assistance from other business Support organizations.

6. Funding sources for Small Scale Enterprise

Money the bible says answereth all things; no matter the business idea a man has he needs money to bring it to pass. One of the main challenges of businesses in Nigeria is lack of funds to finance business ideas. Even if your idea is inspired you need money to start/establish it. So if you think your idea is worth anything, if you believe this is the expansion that will cause positive explosion in your business or you know that this is the next million dollar idea, then you have to save, raise or loan the money required. Let’s just mention some of the sources from which a Small Scale business owner can raise money;

Personal Savings

Partnership

Relations and friends

Private placement of equity

Joint venture

Economic opportunity Loans

Daily contributions

Stock/Shares

Banks

Credit Union/Cooperative Society


Conclusion:

Eleanor Roosevelth said “the future belongs to those who believe in the beauty of their dreams” if you have and believe in your God given dream, you will work and do all it takes to actualize it. Start your own enterprise today or work towards it so as to become a producer of the glory of the richest and wealthiest of all (God Almighty).

For further reading/research please get this book /search this websites:

Be your own Boss by Joe C. David

www.myownbusiness.org

www.nigeria.smetoolkit.org

http://www.myownbusiness.org/

http://www.nigeria.smetoolkit.org/