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Entrepreneur Department
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Small and Medium Enterprises (SMEs), new or existing, often face certain challenges when they approach products providers for both enterprise fixed capital investment and market standards. The insufficient supply of microloans is a major issue, particularly where business creators are unemployed persons, women or form part of ethnic minorities with different cultural dependencies. Supporting the supply of microloans is therefore not only an issue of entrepreneurship and economic growth, but also of social inclusion.
Nigeria has been in the constant wheel of fighting for liberalization of market in the African's sister countries. This gave to the country the political power but remaining behind economic development (NSGRP, 2008). Further, it was reported that there are more than 1.7 million SME projects in Nigeria that employed more than 3 million people, which represent 20% of labor force in Nigeria, where SMEs are vital engines for the economy growth and play a great role for gross domestic product of Nigeria (NSGRP, 2008).
1.8. DEFINITION OF TERMS
It is defined as any business undertaken, owned, managed and controlled by not more than two entrepreneurs, has no more than twenty employees, has no definite organizational structure (i.e all employees report to the owners) and has relatively small shares of its market.
This is a business agreement in which the parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets. There are other types of companies such as JV limited by guarantee, joint ventures limited by guarantee with partners holding shares.
This is an arrangement where parties, known as partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments or combinations.
This is a written and formal document which contains such basic information as the name and principal location of the firm, the purpose of the business, and date of inception.
This means that each partner acts on behalf of the partnership when engaging in partnership business. i.e. The act of any partner is binding on all other partners.
This is a situation whereby each joint venturers participant contributes property, cash, or other assets and organizational capital for the pursuit of a common and specific business purpose. Thus, an IJV is not merely a contractual relationship, but rather the contributions are made to a newly formed business enterprise, usually a corporation, limited liability company, or partnership.
Due diligence is the investigation of a country, business or person, for the purpose of obtaining useful information on the potential benefits, pitfalls and costs. It helps investors to make better profit and mitigate risk.
This allows to limit debts and losses to the assets of the venture and protect the assets of the members themselves from being liable for the venture's debts.i.e. the partners have limited liability and can be held liable only to the extent of their capital investments.
9. Co-venturers
co-venturers": this is a situation when two or more persons come together to form a temporary partnership for the purpose of carrying out a particular project, such partnership can also be called a joint venture where the parties are "co-venturers"
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