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Credit Awareness Nigeria
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Credit Awareness Nigeria CAPACITY BUILDING/ACCESS TO FINANCE FOR WOMEN ENTREPRENEURS Committee of Women Leaders LAGOS CHAMBER OF COMMERCE 25th OCT. 2013
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CAPACITY BUILDING/ACCESS TO FINANCE FOR WOMEN ENTREPRENEURS Committee of Women Leaders LAGOS CHAMBER OF COMMERCE 25th OCT. 2013. Credit Awareness Nigeria. Credit Awareness Nigeria. DON’T LIMIT YOURSELF. MANY PEOPLE LIMIT THEMSELVES TO WHAT THEY THINK THEY CAN DO. - PowerPoint PPT Presentation
Transcript of Credit Awareness Nigeria
Credit Awareness Nigeria
CAPACITY BUILDING/ACCESS TO FINANCE FOR WOMEN
ENTREPRENEURS
Committee of Women LeadersLAGOS CHAMBER OF COMMERCE
25th OCT. 2013
Credit Awareness Nigeria
DON’T LIMIT YOURSELF. MANY PEOPLE LIMIT THEMSELVES TO WHAT THEY
THINK THEY CAN DO. YOU CAN GO AS FAR AS YOUR MIND
LETS YOU. WHAT YOU BELIEVE, REMEMBER, YOU
CAN ACHIEVE.…….Mary Kay Ash, founder Mary Kay Cosmetics
Credit Awareness Nigeria
CASHFLOW MANAGEMENT FOR
FEMALE ENTREPRENEURS
BY:
NNEKA ENELICREDIT AWARENESS
• Introduction •The Focus on Women• Spending Patterns• The need for financial literacy• Definition of Cashflow• Sources of Cashflow• Types of Cashflow• How to manage your Cashflow • A Simple Cashflow Projection
POINTS OF DISCUSSION
• Nigeria is the most populous nation in Africa with a population size of about 162.5m. It accounts for half of West Africa’s population and over 25% of sub-sahara Africa.
• Of this 162.5m, 49% are women; 80.2million girls and women.
Over half of the population (15-64) is young and active.
INTRODUCTION
Female entrepreneurs and managers appear to be instinctive CASHFLOW MANAGERS but is this ENOUGH?
THE FOCUS ON WOMEN
This is because:• They play multiple roles at home, at work, in the community, etc.
• Prudence and cash management seem to be a natural part of the socialization process for the female child and woman
• Nearly 6m young men and women enter the labour market each year but only 10% are able to secure a job in the formal sector and just one third of these are women.
• 1 in every 5 businesses is run by a woman but the major constraint is lack of capital and they have to rely on their savings.
• 1 in every 3 employees in the non-agricultural formal sector is a woman.
• Girls and women have the potential to transform Nigeria. As female entrepreneurs, women:Contribute to economic growth
Contribute to creation of employment
Have been increasingly recognized to enhance the diversity of entrepreneurship in any economic system.
Provide avenues for female expression and self-fulfilment.Verheul et al, 2006, Jamali, 2009, Eddleston and Powell, 2008
WOMEN
SPENDING PATTERNS OF WOMEN
Older Groups (30 – 45 years) / Married•Retain some as savings•Pay tithe•Plough into / establish own business•Bills (school fees, health, electricity, waste disposal)•Assist dependents•Communication (airtime, mobile handset)•Fuel (cooking, car, generator)•Pay salary (house help, shop attendants)•Leisure (vacation, eating out)•Personal grooming / fashion (females particularly)•Transportation
Efina 2012 Gender Survey Report
SPENDING PATTERNS OF WOMEN
Younger Groups (18 – 29 years) / Single
•Retain some as savings•Pay tithe•Train self on desired skill (music equipment, computer, web design)•Pay for professional exams•Paying blackberry subscription•Food (eating out)
Efina 2012 Gender Survey Report
• In business, while instinctive cash management may be a necessary asset, it is not sufficient.
• It is often affirmed that women have less financial knowledge and lower access to financial products than men
although
More commonly, women are said to be better borrowers and more likely to pay back loans than men.
HOW TRUE IS THIS???
!
STATISTICS
• 53.5% of the Unbanked population are females• 78.3% of the Unbanked population live in rural areas.• 9.7% of the adult population currently have loans.• 3.8% of the adult population use microfinance services.
Further revelations• People lack information about banks• Never think about banking• Can’t read or write• Prefer dealing with cash• No proper identification
According to the finscope survey carried out by EFInA in 2010
• A business run by a woman can fail just as much as a business run by a man when cashflows are mismanaged.
Problems arising from mismanagement of funds are not gender biased so a woman needs to be on top of her game just as much as any of her male counterparts.
• Women in business often face peculiar situations and even social pressures which make them especially vulnerable to poor cashflow management and its consequences.
This ranges from the more sublime (need to care for a sick relative from business proceeds to the mundane (aso-ebi for a big social event).
• It is important for women to understand the impact of cashflow cycle (deficits and surpluses) on their business and to know how to manage this cycle effectively.
THE NEED FOR WOMEN TO BE FINANCIALLY LITERATE
THE NEED FOR WOMEN TO BE FINANCIALLY LITERATE
To be able to make informed financial decisions for yourselves and your families
• For better management of household and personal finances
• To gain confidence
• For empowerment
• To enable you make the right choice among an array of financial products and better access to financial services. (Consumer Protection).
• To develop and properly manage entrepreneurial activities
• To properly utilize programmes promoting women’s entrepreneurial activities.
The combination of awareness, knowledge, skills, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial well-being.
WHAT IS FINANCIAL LITERACY?
One of the targets of the Microfinance Policy for Nigeria is to eliminate gender disparity by ensuring women’s access to financial services increases by 15% annually.
VARIOUS INITIATIVES FOR WOMEN:BOI - Financing Scheme for female entrepreneursAGOA (African Growth Opportunity Act)YouWinGoldman Sach’s 1,000 Women Initiative
FURTHER CONSIDERATION FOR WOMEN
Credit Awareness NigeriaCASH???
• Cash is Liquid.
• It is fungible (so it can easily get mixed up with other things and purposes if not properly accounted for).
• Cash inflows are easily misconstrued as profit.
POINT TO NOTE: More businesses are likely to fail due to lack of cash than for want of profit.
KEEPING YOUR EYE ON THE BALL – WHY IS CASH SO TRICKY EVEN FOR WOMEN?
‘CASH IS KING’
THE CRITICAL LIFEBLOOD OF YOUR BUSINESS
CRITICAL FOR THE SUCCESS OF ANY BUSINESS
CASH PROFIT
NOTE!
The ultimate aim of running a business is to make profit.
Profit = Total Revenue - Total Cost
Net Cashflow = Total Cash Inflow – Total Cash Outflow
For your cash to grow, you must be making profit.
NOTE!
What Is Cashflow?
SOURCES OF CASH INFLOWS INTO YOUR BUSINESS
SOURCES OF CASH OUTFLOWS FROM YOUR BUSINESS
TYPES OF CASHFLOWS
Credit Awareness Nigeria
IMPLICATIONS OF A NEGATIVE
CASHFLOW???
Credit Awareness NigeriaWHAT DO YOU DO?
• PLAN! PLAN!! PLAN!!!
• PROJECT! PROJECT! PROJECT!
• Manage inflows so that they are faster than payments.
BASICALLY…….
Credit Awareness Nigeria
HOW?
HOW TO MANAGE YOUR CASHFLOW
HOW TO MANAGE YOUR CASHFLOW 2
HOW TO MANAGE YOUR CASHFLOW 3
HOW TO MANAGE YOUR CASHFLOW 4
HOW TO MANAGE YOUR CASHFLOW 5
HOW TO MANAGE YOUR CASHFLOW 5
HOW TO MANAGE YOUR CASHFLOW 6
HOW TO MANAGE YOUR CASHFLOW 7
HOW TO MANAGE YOUR CASHFLOW 8
HOW TO MANAGE YOUR CASHFLOW 9
A WORD OF ENCOURAGEMENT
A Simple Cashflow Projection
In Summary
CREDIT AWARENESS: An Organisation established by SIAO IN 2008 as a result of identifying extreme gaps in the financial sector with a desired need for the underserved to have access to finance
Vision
To contribute to sustainable development of the Nigerian private sector and the microfinance sector and support socially and geographically balanced growth and economic development.
Mission
To create a major platform to support the continuous growth of Micro, Small, Medium Enterprises (MSME’s)
