Business
Financial Challenges Small Business Start-ups May Face in The Future
Most small business houses face the challenge of finance in the future. If you take a look at financial institutions and banks, they have been designed and built to provide services to large business houses. Their system and process for loan application have been designed for evaluating risks of big business with diverse resources.
The issues of data collection for business loans
Small businesses face problems due to data collection. The information collected is not consistent as three major credit bureaus are delivering and deciphering the creditworthiness of the candidate. There is an underwriting process that needs a lot of data and information when it comes to ascertaining the creditworthiness of the applicant. The process of underwriting needs data about the revenue of a small business. The process also needs to know about the history of borrowing of the candidate and the lines of credit. The time spent when it comes to collecting that data and information is endless and takes long.
Personal credit
Several money lenders will use the personal credit of a small business owner as a symbol of risk for the business as well. These money lenders resort to scoring models for individual candidates and large businesses. This process again deploys a lot of system override and judgment. In short, the small business owner for a loan has to jump into many hoops and before you know it, he is generally caught in one of them.
The above is just the process that a small business owner faces with one money lender. If you multiply that by five lenders, he will be juggling with shopping rates making the loan application process a long one. The money lenders also need to get hold of different information for every applicant. This makes the process of applying for a loan hard for every small business owner as they fail to understand how they can improve their chances of finding a loan. The result is these business owners face themselves stuck in hoops of credit madness. This results in them using the same techniques for generating different outcomes hardly realizing why they are resorting to them.
What are the options for small business finance in the future?
Traditional money lenders are a great option for a small business. However, this would mean they need to develop a system to evaluate a small business by setting standards that are specific to their resources and size. Here, the applicant and the lending institution must make changes to their scoring models by automating the collection of data and streamlining the process for funding. This again will lead to a great level of success say esteemed money lending institutions in the nation like Liberty Lending US. Today, alternate finance provides a window for business loans that traditional lenders hope in the future to become.
Here they would need to create systems to evaluate a small business with standards that are specific to their resources and size. The following are some forms of alternative finance options for small businesses-
- Online lending- The process of online lending is the same as banks. However, the product here is more streamlined. These online loans generally have a qualifying criterion that is less stringent over banks. This applies to credit rating, tenure, and revenue. The process is established on online platforms that permit funding and application in the same field. This means there are lesser reviews and improved accessibility. Online lenders will reduce the wait time for qualification for the business loan. They assess a lot of data over credit history and applicants do not need to apply for extensive collateral. Some online lenders have an application process that is streamlined. They focus on data connections that are live in order to assess the business performance of a company in real-time rather than credit score. This gives small businesses the chance to use their lines of credit for the approval of the loan. Benefits are also highlighted for applicants. They can maintain the control as well as equity of their business. They get the chance to keep their personal finances separate. They can also avoid separating those that are close to them as they get access to funds via a third party.
- Crowdfunding- This is another alternate platform for getting a small business loan. Here, there is online pitching where the owners of small businesses have to convince others that their businesses are worth an investment. The process of crowdfunding entails people asking others to invest in a certain product, business or a campaign. The funds do not have to be paid directly. Here, owners of small businesses may offer a free version of the product or a specific percentage of the future revenue expected.
- Invoice Factoring- Invoice factoring is another alternate funding process for small businesses. Here, the process involves outstanding invoices over the credit history of the business. In this process, the company that specializes in invoice factoring buys the unpaid invoices of the business at a discounted price. This places the focus on the ability of the customer to pay over the small business. The process of invoice factoring is generally streamlined, and it allows the company to attach all the invoices they want to be funded. The owners of small businesses often see the rebates on the same day. Another advantage of invoice factoring is paperwork is reduced. This means the process is faster and you get the funds you need for the development of your small business!
Therefore, when it comes to applying for alternate finance for small business loans, applicants can resort to the above forms of alternate finance. They are simple and more streamlined over conventional bank loans. Moreover, they are quicker to apply for, and the criteria for application is not stringent like that of conventional loans. Apply for them and get the much- needed financial support you need for your small business. Loan application does not have to be a hassle some anymore!
The Minister of State for Industry, Trade and Investment, John Enoh said this at the 8th annual induction and conference of the Chartered Institute of Project Managers of Nigeria (CIPMN).
He explained that abandoned projects continue to lock up public funds that could have been used for infrastructure development, industrial growth, job creation and essential social services.
Represented by the ministry’s Permanent Secretary, Chris Osa Isokpunwu, he said the impact goes beyond financial losses, as incomplete projects affect communities and limit access to important public services
He cited examples of that remain unopened, schools that cannot accommodate students, roads that fail to connect communities and electricity projects that have not delivered their intended benefits.
The Registrar-General and Chief Executive Officer of CIPMN, Henry Ifeanyi Mbadiwe, also identified poor project management as a major challenge affecting development in Nigeria.
He revealed that the institute had developed a project management curriculum for Nigerian universities, which has received approval from the National Universities Commission (NUC). The programme is expected to enable universities to offer project management as a bachelor’s degree.
Mbadiwe further referenced findings by the Presidential Projects Assessment Committee, which identified 11,886 ongoing federal capital projects in 2011, with an estimated financial commitment of ?7.78 trillion.
He noted that inadequate planning, supervision, accountability and implementation were among the factors contributing to the abandonment of projects across the country.
The minister called for stronger project management structures across ministries, departments and agencies to improve planning, monitoring and evaluation.
He added that the Federal Ministry of Industry, Trade and Investment had introduced a 90-day implementation reporting cycle to strengthen transparency and monitor the progress of government programmes.
Ikenga said the company remained committed to Nigeria’s power sector and would continue investing in its operations despite the challenging business environment.
He spoke in Lagos at the third edition of the Shell Power Conference, themed “Powering Nigeria’s Progress: Turning Ambition and Action into Sustainable Impact”.
The Transcorp Power chief said the company would sustain electricity generation, invest in its facilities and deliver value to shareholders.
“Transcorp Power is a long-term player, not a short-term player. This year has been challenging, but what is important is getting power to schools, hospitals and businesses to power progress,” he said.
Ikenga said the company’s focus on operational efficiency and investment had strengthened its contribution to Nigeria’s electricity supply.
He disclosed that since acquiring the Ughelli Power Plant in Delta State in 2013, Transcorp Power had quadrupled its available generation capacity.
He also said the company became the first privatised power generation firm to receive a post-privatisation discharge certificate after fulfilling all its privatisation obligations.
The company’s unaudited results for the nine months ended September 30, 2026, showed a profit before tax of N83.1 billion, while its profit-before-tax margin rose to 31.2 per cent from 29.6 per cent recorded in the corresponding period of 2025.
Its total assets rose to 11.7 per cent amounting to N629.5 billion, while shareholders’ funds grew 8.9 per cent to N199.8 billion. Cash and cash equivalents also rose to N10.3 billion, supported by improved collections.
On the company’s contribution to grid stability, Ikenga said Transcorp Power’s black-start capability enabled it to restart operations without relying on electricity from the national grid.
He explained that the capability allowed the company to support power restoration following grid disturbances, helping to restore electricity supply to homes, businesses and industries.
Ikenga noted that Nigeria had an installed electricity generation capacity of about 13,000 megawatts, with an estimated potential of 50 gigawatts, adding that realising the potential would require effective coordination across the entire value chain.
“Everything in the value chain has to work,” he said.
He called for stronger collaboration among federal and state governments, regulators and private-sector operators, alongside increased private investment, to build a sustainable electricity market.
This was contained in a statement issued on Thursday by his Senior Special Assistant on Communications and Press Secretary, Maryann Duke.
The statement said Oyedele pointed to “improved digital systems, including electronic invoicing, as a key driver behind a record of N33tn in government revenue collected between January and October 2026.”
The minister said the performance demonstrated the potential of technology to improve revenue administration, strengthen compliance and increase efficiency across government institutions.
Speaking on the theme, ‘Digital Sovereignty and Ethics: Guarding the Economy for the Next Generation,’ Oyedele warned that Nigeria risked losing substantial economic opportunities if it continued to depend heavily on foreign digital infrastructure.
Citing Nigerian Communications Commission figures, he disclosed that the country recorded more than 157 million active internet subscriptions as of May 2026.
He explained that these connections generated significant volumes of information through financial transactions, healthcare, education and taxation.
However, citing estimates from the Nigeria Data Protection Commission, Oyedele said as much as 90 per cent of the country’s data was hosted abroad.
According to him, the situation has implications for foreign exchange expenditure, employment opportunities, technological skills and Nigeria’s control over information generated by its citizens.
He compared the country’s reliance on foreign digital infrastructure with its historical dependence on imported refined petroleum products, warning against a situation where Nigerian data would be processed abroad and the resulting services sold back to domestic users.
The minister consequently advocated greater investment in local data infrastructure, technical expertise, cybersecurity and predictable regulations to enable Nigerian businesses to capture more value from the digital economy.
He clarified that digital sovereignty should not translate into technological isolation but should strengthen Nigeria’s capacity to participate competitively in international markets.
Addressing graduating students, Oyedele urged young Nigerians to become developers of technological solutions rather than remain primarily consumers of products created elsewhere.
He identified artificial intelligence as both a disruptive force and an opportunity for innovation, advising graduates to acquire relevant digital skills alongside critical thinking, creativity, sound judgement and integrity.
The minister also cautioned against irresponsible online behaviour, explaining that digital footprints increasingly influence employment prospects, commercial relationships and professional credibility.
Oyedele outlined five priorities for graduates, including continuous learning, value creation, integrity, responsible digital citizenship and active participation in national development.
“Your degree is evidence of what you have learned. Your competence will demonstrate what you can do. Your character will reveal who you truly are,” he told the graduating students.
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