Scaling up access to finance for start-ups, SMEs

Our Reporter

GLOBALLY, about half of employment is created and sustained by the Small and Medium Scale enterprises (SMEs) sector, according to the International Monetary Fund(IMF). This makes the sub-sector the backbone of most economies.

With millions of young people projected to join the workforce by 2025, analysts insist that the need to deepen SMEs’ financial inclusion has never been greater.

According to them, providing the opportunity for SMEs and tech startups to hire more youths will bring a transformative growth dividend across the country. This was the focus of a Skill Base forum, a platform to guide on How to Set Up & Grow a Business, organised by PiggyVest, an online saving platform.

A Partner, Microtraction, an angel investing firm,  Dayo Koleowo, said investors are interested in startups with ideas that can solve  problems.

He noted that beyond having a minimum viable product, investors pay critical attention to the people behind the product. Part of the evaluation criteria of employed funders, according to him, is that startups under consideration have a founding team.

For tech start-ups trying to secure funding, he said  investors want them to show how  they’re going to make money.

According to him, investors believe a viable business model has always been key to securing funding.

He said the business plan must show details for achieving  future growth and profitability down the road.

He said Microtraction has invested in 14 companies.

Speaking with The Nation, Co-Founder/Chief Operating Officer, Piggytech Global Limited, Odunayo Eweniyi, said the event was organised  to expose startups to preparation methods to accessing funding.

She said each edition features experienced entrepreneurs and experts  who share their practical and actionable knowledge and insight, to inspire, educate and motivate startup founders.

The event also features a Pitchfest, where  the winner–startup went home with N500, 000 funding for their business. The session was moderated by Co-Founder,Partnerships, PiggyVest, Terry Kanu.