In the previous posts on this site, we’ve discussed the meaning and a number of sources of business finance in Nigeria. In case you missed that, click here to read.

In starting a business, the major problem that arises is the sources of business finance requires is setting up the business.

Though an entrepreneur might have a great idea of how to manage and turn it ideology into a successful business. But one thing is raising the capital in starting up a business.

As a sole proprietor, one needs to know that lack of funding is the main and major reason for the failure of small businesses.

A reliable way of sourcing fund for business is through the collection of Business Grants.

What is a Business Grant?

Grant  in a simplified term means Money. Grants are non-repayable funds or products distributed or gifted by one party (grant makers), often a government department, corporation, foundation or trust, to a recipient, often (but not in all ways) a non-profit entity, educational institution, business or an individual.

In order to receive a grant, a business must file and write-up a form called “Grant Writing” often referred to as either a Grant proposal or an application.

Most grants are made to fund a specific project and require some level of compliance and reporting.

The grant writing process involves a business (an applicant) submitting a proposal to a potential funder (i.e grant maker), either on the applicant’s request or in response to a request for proposal from the funder.

Other grants can be given victims of natural disasters or individuals who seek to open a small business. Sometimes grant makers require grant seekers to have some form of tax-exempt status, be a registered non-profit organization or a local government.

Read also Other sources of business finance

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