IDC Seeks Improved Funding For SMEs

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The Industrial Development Centre, (IDC), Rivers State, has charged the financial institutions in Nigeria to provide funding for small and medium business owners.
Managing Director of the centre, Mrs Patience Sudo, made the call in a chat with The Tide, in Port Harcourt, Wednesday.
Sudo noted that financial institutions do not readily give loans to SMEs, because of fear that small and medium business owners do not pay back loans given to them.
While admitting that some financial houses had in the past released some funding to small business owners, the IDC boss observed that it was hardly sufficient to keep the businesses afloat or help them to expand. He, therefore, appealed that more could be done, ”especially now that there are no jobs”.
Sudo also noted that the financial policies of the nation were not beneficial to small and medium business operators, adding that finance was the panacea for growth in business.
She explained that the financial institutions usually demanded collaterals that are usually out of reach of the SME operators.
She said small businesses fail no sooner than their take off due to harsh economic situation in the country.
Sudo, however noted that financial mismanagement also contributed to the failure of small business ventures and charged operators of small business to build their capacities on financial management.