by Doyin Jaiyesimi

Why is it that despite our economic progress in Nigeria, brought about by an increase in foreign direct investments, there has been a marked lack of far-reaching development? Why is Nigeria struggling with unemployment in the midst of GDP growth rates that have averaged between 6% and 8% over the last couple of years?

The answers are quite simple; one of them lies in the structure of the economy. The economy has not paid enough attention to small businesses, which are really the engine of economic development. There needs to be a focus on small businesses and how to deal with the issue of access to capital, which remains a major problem for many small businesses.

It is therefore imperative that as an economy, we attempt to evolve a new small business-financing model. One that lays less emphasis on funds in the commercial and micro-finance banking system, but more emphasis on capital in the hands of private investors.

Over the next few weeks, Boardroom will engage bright minds in finance, venture management/financing, private equity and general management to explore various options of financing for small businesses.

The members of the boardroom include:

• Zakaria Mahmood (@zsmahmood), CEO and Executive Vice President, Sinclair Adamson & Company, a London-based Venture Management / Venture Financing firm. He will explore how Nigeria can learn the benefits of alternative forms of capital raising for small businesses, from more developed economies in Europe and North America.

• Ugo Obi-Chukwu (@ugodre), Business Blogger and Founder of resourcedat.com. He will appraise the recent efforts the government has made to provide alternative source of capital for small businesses.

• Kevwe Ijatomi (@KIjatomi), a Finance Associate at Everything Everywhere Limited (formerly Orange and T-Mobile UK). He will assess the possibilities of Crowd Financing in Nigeria and its attendant regulatory imperatives.

• Efesa Origbo, (@efesaorigbo) a Programmer Analyst at National Instruments, Texas, USA. Efesa will consider ways technology small businesses can find alternative funding options.

• The possibilities of Angel Investor Networks for funding small businesses will be explored by Osita Egbubine (@ositane), a Chartered Accountant and Consultant in a ‘big 4’ auditing firm in Lagos.

• Gaurav Lalwani, Assistant Manager, Financial Operations at HSBC Global Finance Centre in India, will analyse the role private-equity capital has played in the growth of India’s technology industry.

As usual, the Boardroom Editorial Board will provide regular insights on these themes, highlighting the possibility of crowd-funding, small business exchanges for small-scale public offers, government-guaranteed bank loans and venture capital/private equity financing.

You can also be part of the debate. If you have a smart idea of how the Nigerian economy can deepen the market for small business capital,  share with the Boardroom and it will be published.

You can write to [email protected]. Join the debate on Twitter (@boardroomNG and #smallbizisbigbiz), Facebook (Boardroom Nigeria) and on the Boardroom website (www.boardroomng.com).

Small business is big business.