Entrepreneurs and small business owners have been advised to prioritize building solid business structures over the pursuit of capital, as structure, credibility, and clarity are essential ingredients for sustainable growth.
This message was a key highlight of the SME Funding Conference hosted by Covenant Capital, the enterprise and advisory arm of The Covenant Nation, held recently in Lagos.
Speaking at the event, Yemi Keri, Board Chair of the Lagos Angel Network, cautioned that many business owners misunderstand the role of capital in business development. According to her, entrepreneurs often assume that access to funding will automatically lead to business growth — a notion she firmly debunked.
“Some of them do not need funding,” she said. “They just believe that if they have a certain amount of money, their business will grow. But in many cases, what they truly need is efficiency, clarity, and structure.”
Structure Over Capital: A Smarter Growth Strategy
Keri explained that businesses could often scale by cutting costs, refining operations, or identifying internal inefficiencies before turning to external financing. She stressed that having clean business records, a strategic plan, and an understanding of the company’s financials are prerequisites to accessing most funding opportunities.
“Your books must be clean. Your financials should be properly documented. Even if you can’t afford QuickBooks or Sage, Excel is a great starting point,” she advised.
She further encouraged entrepreneurs to understand vital metrics like customer acquisition cost and be able to justify operational decisions when pitching to potential investors.
“You’re not just selling your product — you’re selling the value of your business and your own credibility as a founder,” she added.
Alternative Financing and Strategic Support
Also speaking at the event, Feyisayo Alayande, Executive Secretary of the Lagos State Employment Trust Fund (LSETF), reiterated that beyond funding, SMEs often struggle with market strategy, operational structure, and poor understanding of their industry.
Alayande highlighted LSETF’s ongoing efforts to support entrepreneurs through low-interest loans — currently offered at 9% without collateral — and capacity-building programmes aimed at job creation across Lagos.
Meanwhile, Oluwatoyin Emmanuel-Olubake, Chief Investment Officer at Catalyst Fund, addressed the widespread fear among startup founders that equity investors aim to take over businesses.
“Equity investment is about partnership and growth. Founders need to understand that investors are not there to take over, but to add value and help scale the business,” she clarified.
A Call for Preparedness and Perspective
The conference wrapped up with a strong message for entrepreneurs: Funding is not a magic solution. Preparation, planning, and strategic clarity are what attract the right investors.
As the startup ecosystem in Nigeria continues to evolve, experts agree that well-structured businesses with transparent operations and measurable value will always have the edge — not just in attracting funding, but also in achieving long-term success.
