Month: May 2023

Venture Capitalism and Enterprise Revolution in Nigeria

The African Capital Alliance (ACA), a private equity fund manager in western Africa, announced the raising of $200 million from investors in July last year. The third installment of the Capital Alliance Private Equity (CAPE) fund will target important sectors such as power, oil and gas, communications and financial services in Nigeria and across the sub-Saharan region. The ACA is confident of eventually raising a total of $350 million for the fund from aid agencies, international banks and Nigerian institutional investors. The development reflects mounting confidence in Nigeria’s resurgent economy, considering the country’s fist such fund that started out in 1998 with a capital of just $35 million.

While there is no conclusive data on the size of the Nigeria equity market, estimates for the whole of Africa put it over $6 billion in 2000; South Africa, the continent’s largest economy, accounting for half the share. High economic growth fuelled by an enthusiastic reforms programme has seen Nigeria’s growth scale to almost double the figure for developed markets in recent years. The country’s GDP growth rate in 2006 stood at 5.6%, significantly higher than the US (3.2%) or the UK (2.8%)1. Although the private equity market is still in its infancy here, increasing opportunities to invest in high-growth businesses have succeeded to some extent in eroding the conventional insistence on public equity and debt. However, there continue to be significant risks attending investment in Nigeria due to unhealthy policies, a volatile security situation and massive infrastructure shortfalls. Much of this holds true for the continent at large and explains why it receives only a fragment of global foreign direct investment (FDI). Out of the estimated $250 billion in global FDI to developing countries in 2001, Africa received only $11 billion2.

For many international investors, venture capital and private equity in Nigeria are risky propositions because of political instability, violence, social unrest and corruption. Progress in this direction has been impeded by several other reasons as well:

* Poor corporate governance and lax regulatory mechanisms.

* Red tape, legal restrictions and hostile investment policies.

* High trading costs in the primary market for equities.

* Market volatility and the resulting high-risk perception.

* High exit risk for investors because of low liquidity.

* Difficult and often confusing ownership and property rights.

Over the last decade, Nigeria has displayed a steady commitment to reforms. The Investment and Securities Decree was passed into law soon after the return of civilian rule in 1999, opening up the economy to foreign investment. The government of former president Obasanjo also established the Investment and Securities Tribunal for speedy resolution of disputes arising out of investment deals. More recently, the Securities and Exchange Commission slashed transaction rates for equities from 6.9% to 4.2%. International venture capital investors have shown increasing interest in Nigeria after the liberalisation of several important markets like telecommunications, transport, and oil marketing. The fact that fresh policies have persuaded at least some investors to overlook the high cost of doing business in Nigeria is a significant achievement in itself.

Its large population and market size bestow tremendous potential on the Nigeria economy – Africa’s third largest and among the most rapidly growing. The country’s ambitious Vision 2020 programme and the UN Millennium Development Goals together represent considerable challenges in terms of economic revival. Past experience favours strongly against big businesses, which have had a dismal track record and a high-failure rate under both private and public operation. Undeniably, the fate of Nigeria’s long term goals rests on rapid proliferation of SMEs and their ability to drive an enterprise revolution that will sufficiently diversify the economy away from oil and reverse decades of stagnation. The objective is to use SMEs to deliver sustainable development, employment creation and most importantly, poverty alleviation.

This is where venture capitalism derives its significance in the context of Nigeria’s long-term ambitions. Private equity investment has been responsible for some of the most notable economic success stories across the globe. Entrepreneurs starting out with angel loans turned India around into the largest software exporter in the world. In South Korea, booming small high-tech businesses bypassed larger firms to lead the country’s recovery from the Asian economic crisis. Equity funded enterprises have likewise recorded high growth figures in developing countries from Asia, across Europe and in South America. The global experience with venture capitalism throws up a number of important considerations in terms of providing the right environment for rapid growth. The following are some of the most important challenges and considerations facing Nigerian policy makers in this regard:

* Establishing a venture capital technical assistance programme to enhance SME performance in diverse economic sectors.

* Institutionalising tax benefits for equity investment to attract foreign investors.

* Providing risk guarantees to create strategic venture capital industries that improve self reliance and curb import quotas.

* Enhancing venture capital capacity to stimulate and promote the industrial expansion.

* Focusing equity investment on SMEs that optimise resource utilisation and assist local raw material development.

* Promoting innovative business ideas, processes and techniques that boost both productivity and profitability.

* Hastening industrialisation through equity infusion in high-growth areas like telecommunications and tourism.

Nigeria’s reforms process prompted a unique voluntary initiative at the turn of the last century when the Nigerian Bankers’ Committee launched the Small and Medium Enterprise Equity (SMEEIS) scheme. Billed as an attempt to promote entrepreneurial expansion, the scheme required all locally operating commercial banks to earmark 10% of pre-tax profits for equity investment in small and medium enterprises. Even though more than Naira 18 billion had been set aside by 2003, utilisation of the funds remained abysmally poor at less than 25%. The Nigerian Central Bank owed it to a lack of viable projects and general reluctance toward equity partnership. If poor managerial and business packaging skills are areas of concern, the prevailing mindset against venture capitalism in both existing and emerging enterprises is even more so.

To quote former Central Bank governor Joseph Sanusi (29 May 1999-29 May 2004), accelerated economic development is not possible until Nigerian entrepreneurs learn to appreciate that “it is better to own 10% of a successful and profitable business than to own 100% of a moribund business”.

Expanding Business Opportunities in Grasscutter Farming

Introduction to grasscutter farming

Many of the farmers and people in the great plains of Africa are finding a new source of revenue. This is through grasscutter farming, a practice of raising grasscutters for their meat. The grasscutter is an herbivorous rodent and its meat is tender, delicious, rich in proteins, free from fat and can be prepared in a number of ways.

People belonging to different occupations both high and low consume the grasscutter meat. The taste and nutritive value of this meat is comparable to poultry meat. This farming practice is a multimillion-dollar business, which has now opened the doors to prosperity for many people in Africa.

You need to take care regarding two or three things listed below.

– Enough space so that there is no spread of diseases

– Give enough nutrition for the grasscutters

– Keep the place clean to prevent infections

– Check with market before you start

Worldwide appreciation for the meat

The market demand for this delicacy is rising day by day. Apart from the local hotels and many homes in the vicinity, the Chinese also hugely favors this. The expense of raising them is minimal since they are herbivores and if you obtain the proper manuals and gather information regarding raising grasscutters, you should be in an advantageous position to make money in this multimillion-dollar affair. If you have excess meat they may be dried and packaged.

Requirements for Raising Grasscutters

You would only require a piece of land to raise the grasscutters. They are herbivores, they have a gestation period of 5-6 months, they are relatively easy to maintain. If you keep the surroundings clean and sanitized, there is no chance of infections and no need for medicines. The food that they eat is obtainable locally at no cost.

Aspects of Business in Grasscutter Farming

This is a multimillion-dollar business where anyone with a few dollars saved up will be able to start. You would need to know the addresses to ship the meat to if you wish to expand your business overseas. Exporting the meat brings in large profits. However, you may also sell them locally to the houses nearby and the hotels in town when you are just beginning.

Grasscutters are not hostile because they get all their food from vegetables, plants and grass. They are susceptible to elimination due to the forest fires and extensive hunting. By encouraging the grasscutter rearing practice, we will be able to preserve this species from dying out.

Types of Business Licenses and Permits

The last thing you want to find out after starting your business is that you have failed to conform to the law by not filing for the right permits for your business. Before establishing a small business, you should pay attention to your town, city, and county regulations. In most locations, every business needs a basic license which is sometimes called a tax registration certificate. Apart from this, other permits and licenses may be required as well.

Business licenses and permits are issued at all levels of government – federal, state and local (city, county, or town). Depending upon the kind of business you are running, you may need to apply for licenses at multiple levels. For example, if you decide to open a restaurant in the city of San Francisco, you will need a business license and health permit from the city of San Francisco, sales tax license from the state of California and a federal tax ID number from the U.S. federal government.

Not sure what kind of license or permit you need for your business venture? Well, as usual, we’ve made it simple for you. Below is a quick checklist covering the most common federal, state, and local licenses and permits you may need to acquire before commencing business:

Business License – This is the basic license that you will need to operate a business legally. If the business is located within city limits, a license must be obtained from the city; if outside, it is procured from the county. Contact your city’s business license department to file an application. Also remember that you need to pay an annual fee.

Federal Employer Identification Number (EIN) – Also known as a tax identification number, this is required for almost all types of businesses. Depending on where your business is located, you may also need to acquire a similar tax identification number from your state.

Zoning and Land Use Permits – Before you start your business, you have to find out if the space you are going to use is properly zoned for the kind of usage that is planned. You may need a zoning compliance permit. Zoning laws regulate off-street parking, waste disposal, and the size, construction and placement of signs.

Health Department Permits – If your business involves the preparation and/or sale of food, you will need a county health department permit. Note that the health department will inspect your facilities before issuing one.

Sales Tax License – This license is essential before you can sell almost any product or service in any state.

Fire Department Permits – Businesses such as restaurants, day-care centers or any other that attract a large crowd need a permit from the fire department.

Special State-Issued Business Licenses or Permits – You may need special licenses if your business involves the sale of certain types of products including liquor, lottery tickets, gasoline and firearms.

Special State-Issued Occupational / Professional Licenses – In many states, people in certain occupations must have licenses or occupational permits. State licensing is typically required for auto mechanics, plumbers, electricians, building contractors, collection agents, insurance agents, real estate brokers, repossessors and personal service providers (beauticians, cosmetologists, therapists and masseurs). If you are thinking of starting any of these businesses, you will have to pass state examinations in order to get the permit. Contact your state government offices to get a complete list of occupations that require licensing.

Special Federal Business Licenses or Permits – You may also require special business licenses from the federal government if your business involves investment advising, drug manufacturing, preparation of meat products, broadcasting, manufacturing tobacco, alcohol or firearms.

Licensing and permit requirements for small businesses vary from state to state; it is therefore a good idea for you to contact your state and local government to determine the specific obligations for your new business.

Lessons for Marketers From Chanakya, an Indian Teacher From the 4th Century BC

[Chanakya] Learn from the mistakes of others. You can’t live long enough to make it all yourselves!

[Marketing Perspective – Research] Time is short and is the most critical element. You need not make the mistake and then change your strategy. While sometimes you will make mistake but that should be accidental. You need to do a thorough homework/research prior to developing any plans. Analyse what competition closely – from a marketers perspective. This entails learning from competitor research – Research about their positioning, segmenting, marketing case studies and marketing strategies. Once you have researched, you will know how to develop your marketing/communication plans more efficiently.

[Chanakya] A person should not be too honest. Straight trees are cut first and Honest people are screwed first

[Marketing Perspective – How to represent the message?] There is a way to communicate to your audience – revealing all of the properties/attribute has not helped many brands/companies. Several times, it has to be mended as per the current situation and understanding of the audience. This does in no imply that you need to fake stuff but you need to mend it in the right way.

[Chanakya] Even if a snake is not poisonous, it should pretend to be venomous

[Marketing Perspective – Confidence in your Plans/Strategies/Approach/Presentation] Try to be confident in the market. Unless it is a monopoly, brands/companies face huge competition and is subjected to several challenges to grab a piece of the market share. There are big fishes always trying to discourage you and trying to throw you out from the marketplace, hence you should be confident enough of your plans and strategies. Face the competition with utmost confidence, display it through your marketing/sales/business efforts, to your prospects, customers, investors, employees, analysts and other stakeholders. You know what they don’t know and things spoken with confidence, backed by facts/logic always works out.

[Chanakya] Never share your secrets with anybody. It will destroy you!

[Marketing Perspective – Trade secrets] Perhaps the company deals with information that can make or break the company. Trademarks, copyrights, Intellectual property rights, data protection and security are all directed to this maxim stated by Chanakya.

[Chanakya] As soon as the fear approaches near, attack it and destroy it.

[Marketing Perspective: Change your idea/strategy/campaign] Juggling with a known problem is never a solution. It will cause you to be defeated at one point or the other. When you have identified an issue with a campaign, rectify it immediately or if a campaign does not workout, change your strategy and switch to your other option rather than keeping your ego and still juggling to make it work while wasting time, energy and resources on it. A marketer should remember that it is not a personal defeat if the campaign/idea does not work, rather it is for the benefit of the business that he is working for and hence should make possible efforts to attain the stated marketing and business objectives.

[Chanakya] Even from poison extract nectar, wash and take back gold if it has fallen in filth, receive highest knowledge from a low born person.

[Marketing Perspective – Innovation/Learning/Incorporating ideas] Unexplored market segments – take ideas from each one – a small idea/innovation can make a huge difference – receive feedback from your stakeholders – open communication

[Chanakya] Before you start some work, always ask yourself three questions – Why am I doing It, What the results might be and Will I be successful. Only when you think deeply and find satisfactory answers to these questions, go ahead.

[Marketing Perspective] It is indeed true that planning is an important ingredient to the success of any campaign. A well thought and researched, clear objective based campaign has performed well in several cases.

[Chanakya] The world’s biggest power is youth and the beauty of a woman.

[Marketing Perspective – The right segments] These are the two segments that are really powerful. Brands/products/services launched in this category and that have been marketed well, have performed extremely well. Catching the pulse of these two target segments and doing targeted marketing will yield results.

Top Sources for Financing Your Business

Are you a fresh entrepreneur? Are you looking for funding ideas for your business? Here are a few ideas which will help you to fund your business:

Angel Equity – If you want to get your company to make some real progress then find a person who is an executive in the respective industry to invest in your company. He should be ready to give you venture credibility compared to other companies and start-ups.

Smart Leases – Taking fixed assets on lease basis helps preserve cash for working capital i.e., to cover up inventory and so on. It is usually tough to get financial help for an unconfirmed business.

Bank Loans – Banks are similar to supermarket of liability financing. Banks usually provide short-term, mid-term and also long-term financing according to your requirement. They provide funding for all kind of needs such as equipment, working capital, and also real estate. With this you can of course generate sufficient funding to cover the interest payments and also give back the principal amount.

State and local economic development authority – The state or local economic-development organizations may enticingly charge low rate of interest while providing funds along with a bank.

Customers – Taking advance payments from clients and assuring to provide them service assuming the conditions are not too burdensome and can provide you the funding you require. At a comparatively low cost, you can keep growing your business. But also remember advances exhibit a certain level of commitment.

Vendors – You can take funding from your vendors or suppliers. In this way your financers do not control your business but you do. Make sure to subject yourself to a handful of authoritative supplies.

Family and friends – Friends and family can be the most indulgent investors if you are lucky enough. They will not ask you to pledge your house and some might even agree on low interest rates.

Small Business Innovation Research (SBIR) Grants – Clearing through all the paper-work process and SBIR grants is a great method to seizure your intellectual idea into great money.

Tax Increment financing – TIF grants are generally geared to the development of real estate in a few areas. These grants can be as high as 20% to 30% of the price of the project depending on the area.

Internal Revenue Service – IRS does not do funding. It helps you to reduce your expenses. It evaluates if you can use your profit to expand your business if you pay high amount of taxes.

Bootstrapping – Most of the billion dollar entrepreneurs do not rely on financers for funding so that they can control their business and not their investors.

Know The Important Things Before Hire A Freelance Remote WordPress Developer India

If you are not aware of the real importance of web developer and web designers for your websites then you must read this article. In this article, you are going to find the several benefits of being good web designers.

You don’t have to add much special features and effects on the website but as a good website developer. You must know that is all the information is regarding the objects and products on the website. So, let’s find out the best ways to hire a web developer.

Your Web Designer Must Be Apart From All Others

Web designs must be of better quality. Yes, it must be as you need the attention of customers and graphics can be the best way to attract the customers but as a professional website designer, you must concentrate on appropriate details of the particular product. You can hire freelance remote WordPress developer India for the best web designing ideas.

Earning Customer Satisfaction

The very important factor that will decide that design is perfect or not is the number of customers that buy products from your website. People will only buy a product from your website when this customer would feel that this brand is safe and reliable for use. As you know that the first impression is the last impression and design is the first impression of your website and product.

An Attractive Website That Attracts Everybody

Any brand or company not looking for clicks on their websites. These brands are looking for visitors which will stay on their page for a good period of time. These companies know that the website designing must be very attractive and stimulating so that the visitor doesn’t feel bored while browsing or working on the page.

The Brand Uniqueness Must Be Trustworthy

Experienced and professional designers always think about the future. These designers create very easy and comprehensible visual language for your brand or company that will surely be reliable across different and amazing content. Brands or companies that have reliable visual language that owns have a memorable impression.

Consistent Companies

The brand or company will give the finest result if the partnership between the business owner and web designer is seamless. The freelance WordPress designer and plugin developer are the best for creating the unique designs for websites. These two personalities must have good communication. The business owner has to keep trust and faith on web designer because the web designer is the only who design the company website for online marketing.

The Content Must Be Clear And Genuine

The content on any website should be clear. The viewer must not face any kind of problem while reading information or details of products. The information must be in such a manner that a viewer should not get bored while reading the website content. Your web designer must use easy and comprehensible language because people are not actually interested in your writing skill they just want to see the products description and usage terms. Check out Freelancer Bhushan website for more info regarding web developing.

So, keep calm and choose the best website designer for your websites and make your sales high.

http://www.freelancebhushan.com/freelance-wordpress-development/

How to Hire Virtual Assistant?

If you’re a busy person working hard to achieve success in your business and financial life, you may not be able to afford hiring a full-time personal assistant. But in order to achieve more and get rich, you must delegate works and tasks. You can’t do everything on your own. So there is other option for you, why not hire an online personal assistant instead? It’s low-cost and easier than a regular in-house personal assistant.

Getting assistance virtually and at very low cost is not a bad idea. You have lots of things to do, you have goals in your career and life, but time flies like anything. Why not offload few things and give them to your Virtual Assistant to complete, under your supervision and guidance.

Workplace Vendor offers best solutions for Virtual Assistance, and we have given below few important points to note while selecting your VA.

Given below are some important steps to consider while hiring Virtual Assistance Services:

First: First of all you need to confirm the geography of the Virtual Assistant. As many low-cost VA’s are available outside US or Europe, hence their availability in your time zone is important. This is good to confirm availability and support time before entering into any agreement or contract. Most of the VA’s in the Third Word are working over night so this would not be an issue, but better to confirm at the outset.

Second: The language of the Virtual Assistant. Your VA must speak your language. If you are based out of France or Germany or if you speak any language other than English and hiring Virtual Assistant from India or Philippines, you need to be extra cautious as VA’s in these countries normally speak English and may not be able to support you in your language except if they have special multi-lingual skills.

Third: You need to check and confirm the domain knowledge. If you are hiring for general assistance, or for human resource department or for IT support, the VA’s must have required knowledge. The issue comes in when we hire General Admin Virtual Assistant and ask him to design a website or perform technical SEO activities, in these cases the VA’s fail to perform and whole industry suffers.

Fourth: Check the availability of daily usage tools and technologies like Computer, Software, Mike, Camera, Word Processor or Spread Sheet, etc.

Fifth: Better to have an agreement with a Virtual Assistance Services agency for better security and proper support. The agency will serve you in more responsible way and keep alternatives and back-ups for smoother support.

Sixth: You may use some tool to count utilized hours, as Virtual Assistance agencies charge hourly. But you may also have an agreement with monthly fees that is better if you have permanent flow of work.

Internet Business – Magic Of Internet And Business

I remember my father telling me that the harder I worked, more the money I would be able to make. Well, there would hardly be any person who would agree to that in today’s world. Working smart is the new way of life.

If you were to start a business say 10 years ago, your market would have been the people living in your city or in your area. But now, with the internet revolutionizing pretty much everything, you can start an internet business by selling your products to anyone and anywhere in the world. So if you have a business on the internet you have the whole world to sell your products to.

Once you know you want to start an internet business the next thing would be choosing what you want to sell. The products which sell on the internet are plenty so you have to be very smart while choosing the right option. You can select something which would be of your interest. For example: If you are interested in music, you can start an internet business by selling music instruments. You can also sell unique artwork like posters, T-shirts and other merchandise related to music to start with. Make sure that the product you sell will be of your interest and you have a thorough knowledge about it as it will always come in handy.

It’s not necessary to be selling something but you can also provide service on the internet. You can become a career counselor or a match maker. Let’s take another example related to music. Even if you don’t have anything to sell, you can be selling your skill. Teaching instruments on the internet is also very much feasible and something which a lot of people are doing today. People find it more comfortable as they can give time according to their convenience and they don’t have to go to places to learn.

There is one more option available if you don’t intend on selling your own product or a particular service. You can also advertise someone else’s products on the internet by affiliate programs. The companies would be paying a certain share of the sales when you direct a person to the company’s website. So basically you act like a broker where you make the buyer meet the seller and the later pays you for doing so as you are getting him business.

So now you know that the possibilities of doing business on the internet are limitless and very much possible. A lot of people underestimate the magic that internet and business can do when they come together. I would advise you to experience it for yourself.

Promotional Gift Ideas for Effective and Successful Business Promotion

The main purpose of every business is gaining more and more profits without spending a lot of money. But, for a successful business, effective sales and marketing strategies as well as perfect and well planned promotion or advertising is essential in a number of ways. And for this, a considerable amount of money is spend every year on advertising and promotion of products and services.

Promotional gift ideas are also a successful way of business promotion that without spending a good amount of money can lead your business to the way of success. In other words, presenting unique and business related gifts to existing customers, prospective clients, employees and business partners is considered as an effective marketing tool to promote your business and making people aware to your aim. When it comes to promotional gift ideas, then the marker places are flourished with an assortment of products and ideas to gift all those related to your business.

Right from coffee plunger to iPhone cases, leather CD cases, airline toilet bag, keyring and pen sets, vantage binoculars, traveller kit, candle sets, beautiful wallet, folding umbrella, cooler /warmer, digital clock, mugs, flasks, book set, to any thing else that can suit your business promotional gift ideas. Depending on your choice and ideas, you can select any kind of promotional product and also customise them according your requirements. In other words, these promotional and corporate gifts have enough space to imprint with your company name, logo, message and website address.

Apart from this, you can also select them in your preferred colour and design. Moreover, unique and innovative promotional gift ideas are also suggested by professionals who have gained so much experience in the field of promotional products and gift ideas. They can easily aware you with the unique gifts that can boost the popularity of your products, business or services. Apart from this, these professionals also offer you an option of get your selected items and products customised according to your choice and desire. These professional also offer their services online.

Successful Technique For Best Home Based Internet Business

Best Internet home business now a days is very rapid business in this world but you know when ever there is high ratio of profit then obviously you will find presence of competition. Due to stiff competition there are high chances of failure and that will create frustration of losing all factors such as money, time and efforts.

If you see out of 100 businesses only 5 to 10% business will succeed and earn handsome amount of money, but for others to earn 500$ is also very painful. A proper action is required than the unfruitful talk to be a millionaire or a billionaire otherwise every time you have to face failure everywhere.

The main reason for best internet home based business failure and to have this kind of situation is just because of lack of knowledge of market and business as well as there is no proper planning and lack of technical knowledge. Lack of knowledge is the prime factor to waste money, efforts and time in a blindly manner.

Another thing is unattainable object or dream that obliviously crash business because they are not able to put enough required efforts to attain that object.

They do paperless business that is sign of failure of business. Nothing is possible without hard work and also requires patience with that hard work, so it’s better to concentrate on reality not on uneven talk or things. Patience is hardcore and prime thing that is required in any business. Sometimes it takes longer to achieve success or in finding or getting the right way for success.

Every business based on strategic planning and its proper implementation time by time helps to attain desired goals for your best home based internet business smoothly.

Spend more and more time and put your best efforts from all angles with smartness, this will make your job easy to attain your goal and you can easily satisfy your present customer and attract lifetime customers in future. Rest is just required to continue that process again and again that creates good returns and business for long run.

Business development and success never ends if you continue to put in more and more efforts into your best home based internet business.

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