Patterns and Dynamics in Business Financing in a Depressed Economy: The Nigerian Example

Abstract

Nigeria’s depressed economic state has continued over the years, raising serious concern among entrepreneurs as they struggle to raise capital to finance their businesses. Remarkably, new selfrun businesses open up daily in Nigeria due to graduate unemployment and high population growth rate. Unfortunately, businesses die faster than their birth rate owing to financial problems. To address this problem, the search for fund raising strategies and financial resilience among businesses have gathered serious pace. The present work explores patterns and dynamics in business financing in a depressed economy. The work lays the foundation to understand the depressed nature of the Nigerian economy. It showcases some traditional patterns of business financing in Nigeria. It also takes note of the problems facing these traditional methods, in terms of the dynamics for business financing. It concludes with some funding suggestions in Nigeria’s unsteady economic scene.