Small Business Camp Road Show

MIXING BUSINESS AND PERSONAL FUNDS- A PARADIGM FOR BUSINESS FAILURE

R-L Alh. Massanawa, Executive Director BOI presenting a certificate of completion to a participant

"Entrepreneurs failures to differentiate between businesses funds from personal funds have contributed to the demise of so many businesses around the world". Those were the words of Ms. Margaret Bishop, a U.S based International Consultant and the Chief Trainer of Secret to Business II Seminar, a Bank of Industry's (BOI) pet project and Rimsom Associates initiative on entrepreneurial development.

Secrets to Business Success II recorded a huge success compared to the Secrets to Business Success I in terms of content and level of participation. The business tour took place in 3 different state capitals in Nigeria. The states visited were, Anambra, Delta and Benue States. Just like the first phase, boot camp II focused on some basic entrepreneurial development skills that are required to build a successful business (see empowering Nigerians through Entrepreneurial Training for details on the curriculum).

Ms. Bishop, during her teaching, emphasized on the reasons why some businesses fail. Here, she enumerated certain factors that have led to the demise of some businesses. These factors according to her are not limited to the following:

• Lack of experience
• Insufficient capital
• Poor location
• Poor inventory management
• Over-investment in fixed assets
• Poor credit arrangement
• Personal use of business funds
• Unexpected growth
• Competition
• Low sales
• Underestimating the difficulty of starting a business
• Insufficient marketing and sales effort

Over 1,200 local entrepreneurs took part in the last boot camp. The BOI representatives as usual were on hand to teach the local entrepreneurs ways to benefit from the bank's (BOI) funding. The third phase of Secrets to Business Success Seminar is expected to take place before the end of first quarter of 2008.