An opportunity for free business registration
It is a deal between SMEDAN and CAC but before we get there let us look at how business and the economy correlates. The Nigerian economy is mostly made up of the Small and medium scale enterprises (SME). This industry has been one of the major sectors that has helped in absorbing the economic pressure that hit us for a while NOW.
I see why SMEDAN (Small and Medium Enterprises Development Agency) decided to partner with the Corporate Affairs commission (CAC). Personally for me, this is a big thumbs up and I will be encouraging more of this.
Doing professional business requires some level of standards and one of those is getting your business registered with the regulated government bodies. It was one of those big moves I made last year to officially get us a business name.
It has been worth it, we have gained some level of trust in the process. It has also made incoming clients to trade with us with respect. Trust me, you need it, when people just rate your business anyhow, the pricing can also be anyhow.
I don't know how much it costs to register a business over where you are but the least according to the reports I got from research is around N11,500. Anyway business registration has cadres and we were in pursuit of at least 1 million in shares.
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It did cost us some extra bucks but we have some private shares we could leverage on should we want to sell some out. That is not the plan currently anyway, first it will be a cheap sell if we should currently and secondly, it will be very pressurizing.
shareholders are always after their profit, period. You can't blame them though, they just put their money to work and you will on the other hand have to deliver.
That was why I said I will have to hold on just for the right time to sell shares; currently, it is those soft loans, grants and angel investors we should be targeting.
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That said, It is one of those opportunities for some entrepreneurs to leverage. It even depends on how many read the news or on the other hand see the importance of improving their business.
SMEDAN in partnership with CAC just opened the door for free business registration of 250,000 businesses. According to reports, it is a move by President Bola Ahmed Tinibu regime to easen national economic pressure on growing businesses and households too. I don't know how this will be shared zonally or statewide.
So what does this mean? Exposure, for sure not everyone will be able to take advantage of this free registibut the information will fly across. Creating awareness for the need of owning a fully registered business will spread.
It is something that the government stands to benefit in the long run. Proper taxing can occur in the process flow in the system. Oops, it seems I just let it out for the government to work on.
At least if ALL local businesses could be listed it will create a good data collection report. Economic data is one of those important charts to look at.
How many SMEs make up the economy? What are their main sector focus, can we introduce something new to foster productivity and the rest liked questions will be addressed.
As I earlier said, Nigeria is an SME dominated economy, these entrepreneurs needs funding in the process to expand this industry. One of the eyed sectors should be how SME entrepreneurs should target exported goods.
It is one of those things that would help strengthen currency which will also affect the economy in entirety.
To conclude, let me add, I will be doing a follow up to this news as to how it has affected the beneficiaries and perhaps the next prepared steps by both SMEDAN and CAC. When it comes to such business news it is always good to stay very updated as concerns to next phase opportunities. Who knows, grants and soft loans may be next and we as entrepreneurs will really welcome that.
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