Small Business Grants: A lot of people who want to start a new business need money to get started. Getting a small business grant in Nigeria is one of the best and cheapest ways to get money for your business. Unfortunately, there aren’t that many grants for small companies in Nigeria from either the federal or provincial governments.
Grants don’t have to be paid back like business loans do, so you don’t have to worry about the length of the term, the interest rate, the APR, or renewal. To get the money, all you have to do is meet the requirements. We talked about the best small business grants in Nigeria in this post. These grants are given by both the government and private people.
What are Small Business Grants?
Small business grants are funding options provided by government agencies, nonprofit organizations, and private companies to help small businesses and startups cover their costs. Unlike business loans, grants do not need to be repaid.
Small Business Grants You Can Apply for as Young Entrepreneur in Nigeria
Below are some of the small business grants available for young entrepreneur in Nigeria:
1. The GroFin Fund
GroFin is a leading development bank that helps small and growing businesses (SGBs) in Africa and the Middle East by giving them money and other support. GroFin helps businesses in emerging markets grow by giving them patient capital and expert business support.
GroFin focuses on Small and Growing Businesses (SGBs) that other funds and lenders don’t do nearly enough for. Offers a one-of-a-kind, all-in-one answer for patient risk capital and full business support to small and medium-sized businesses that are just starting out or growing. Ghana’s GroFin has a fund of more than $100 million to help micro, small, and medium-sized businesses (MSMEs) all over the country.
2. Tony Elumelu Entrepreneurship Program (TEEP)
Every year, Nigerian business mogul Mr. Tony Elumelu starts the Tony Elumelu Entrepreneurship Programme (TEEP) through the Tony Elumelu Foundation (TEF). The goal of the program, which started in 2015, is to give African businesses 10,000 USD as start-up money. Over 50,000 people apply to the school every year, and 1,000 entrepreneurs from all over Africa are chosen.
Over 50,000 people apply to the school every year, and 1,000 entrepreneurs from all over Africa are chosen. Each application is carefully looked over by business experts in the field, and winners are chosen based on how well the business can be run, how big the market is likely to be, and how clear the financial models are. The application process for each school cycle starts on January 1 and ends on March 1.
3. Bank Of Industry (BOI)
The Bank of Industry (BOI) just started a program to help young, bright entrepreneurs who want to start their own businesses in different parts of Nigeria’s economy. The BOI’s Youth Entrepreneurship Support (YES) Program helps young people with their business ideas and builds their skills to help solve the problem of youth unemployment in Nigeria.
The goal of the YES program is to give young people the skills and information they need to work for themselves by starting and running their own businesses.
4. Lagos State Entrepreneurs Trust Fund (LSETF)
According to the Lagos State Employment Trust Fund Law 2016, the LSETF was created to help people of Lagos State get jobs, make money, and fight unemployment by giving them money. LSETF is a tool that helps people of Lagos be more creative and come up with new ideas. It also helps lower unemployment across the State. The Fund’s job is to directly spend ₦25 billion to help people in Lagos grow and scale their Micro, Small, and Medium-Sized Businesses (“MSMEs”) or get better jobs by learning new skills.
The LSETF was created by Governor Akinwunmi Ambode and plans to help 100,000 MSMEs get started by 2019. This will create 300,000 direct jobs and 600,000 related jobs. As of now, 705 people have been helped by the project, which is well under way.
5. AYEEN Grants for Money
Africa’s Young Entrepreneurs (A.Y.E.) wants to give young entrepreneurs across Africa more power by building tools that make trade easier within Africa. Their goal is to help the next generation of great African businesspeople grow into leaders who will change their countries’ economies and governments.
AYEEN wants to give money to small businesses in many areas of the economy. Winners would get their gifts, and the organizers wouldn’t have to do anything. However, the business owners and their companies will be properly watched over for a year. For the program to work, the person applying must be a Nigerian and the business must be in one of the 36 states in the country.
FAQs
What types of small businesses are eligible for grants?
Nearly any type of small business can apply for grants, including:
- Retail stores
- Restaurants
- Professional services like consulting or accounting firms
- Manufacturing companies
- Nonprofits
The specifics depend on the grant, but in general, if you have a viable business plan and need funding to launch or expand, there are options worth exploring.
How do I find small business grants to apply for?
There are many resources to help you find grants:
- Grants.gov – This is the main government website where you can browse over 1,000 federal grant programs. Many are targeted at small businesses.
- Your local SBA office – The Small Business Administration offers guidance on grants and other funding options in your area. They can help determine which you may be eligible for.
- Private foundations – Many large companies and private donors offer small business grants. Do some research on foundations in industries related to your business.
- Your state grant website – Most states offer additional grants for small businesses. Check with your Secretary of State or Commerce office for details.
What do I need to apply?
The specific application requirements will depend on the grant, but in general, you will need:
- A business plan that outlines your idea, mission, target market, organizational details, and financial projections.
- Information on how you will use the funds, including a budget. The grant provider will want to know the money will be spent wisely.
- Financial details like business income statements, balance sheets, cash flow statements, and tax returns. This helps demonstrate your financial need.
- Information on business owners/key personnel like resumes, backgrounds, experience, etc.
- A strong, compelling story about your business and why it deserves funding. This can set you apart.