Source of Funding:
1. Personal savings:
Many self-employed individuals rely on their personal savings to bootstrap their businesses. This involves using funds that they have accumulated over a period of time through disciplined saving.
2. Gifts from friends and relations:
Some self-employed entrepreneurs receive financial support from their network of friends and family. This form of funding can come in the form of gifts or loans, providing an initial boost to start or expand the business.
3. Loans from banks:
Self-employed individuals often seek financial support from banks, especially micro-finance banks, to secure the necessary capital for their businesses. This involves borrowing money with the expectation of repaying it over time.
4. Plough-back profit:
Instead of immediately withdrawing profits for personal use, some self-employed individuals reinvest a portion of their earnings back into their businesses. This strategy helps in business expansion and development.
5. Government assistance:
Individuals who undergo vocational training supported by government agencies may receive financial assistance to kickstart their businesses. This support can come in the form of cash or in-kind contributions, facilitating the transition from training to entrepreneurship.
Government Agencies Promoting Self-Employment:
1. National Poverty Eradication Programmed (NAPEP):
Established in 2001, NAPEP plays a pivotal role in coordinating and monitoring poverty eradication programs in Nigeria. Its functions include encouraging mass participation in economic reform, assisting state and local governments in developing anti-poverty programs, and fostering public and private sector partnerships.
2. National Directorate of Employment:
Created by the National Directorate of Employment Act in 1989, this agency is dedicated to combating unemployment. Its functions include designing and implementing employment programs, formulating policies for labor-intensive work programs, maintaining a database of employment and vacancies, and promoting skill acquisition through the National Open Apprenticeship Scheme.
Additionally, women development centers and government technical colleges across the country serve as hubs for vocational and technical education. These institutions not only contribute to the development of skilled labor for industries but also play a crucial role in supporting youth empowerment programs. They serve as vital training grounds, preparing individuals to enter the workforce with the necessary skills and knowledge.
See also:
The Role of Citizen in Constitutional Developments
Human Trafficking | Causes, Effects and Consequences