The continuous rise in the prices of goods and services, which has led to increase in the cost of living has left many business owners helpless.
Many have used their capital for feeding and other expenses with the running cost of their businesses skyrocketing.
Economy& Lifestyle discovered that those who couldn’t stand the test have shut down the business while some have resorted to working a few hours for people during the day before attending to their own businesses the same day.
Mrs. Monisola Akanbi, a fruit seller, said she worked briefly at Iyana Iba fruit market where she was paid 3,000 naira, to raise money to resume her own busibess after it crumbled a few months back.
She said: “Running a business in this country is not easy now. You just see people selling and you envy them but you don’t know what they pass through trying to make ends meet in the business.
“I am a hairdresser who has been into hair making for a while. But I sell fruit as my main business. Raising capital and sustaining the business is one difficulty I was experiencing because the prices of most fruits go up anytime you visit a fruit market.
“I was still struggling with keeping pace with the rising cost while doing other expenses but it wasn’t forthcoming. So I had to secure an early morning job at the fruit market where I sell till 10 a.m and return home to get ready for my own fruit business.
“She pays me N3,000 daily of which I spend N1,000 as transport fare and put the rest into my business.”
Mrs. Favour Osagie, a food spices seller said she joined a thrift contribution whose aim was to help small business owners access capital.
According to her, “It has not been easy doing this business. As you know, the price of anything that goes up in Nigeria never comes down apart from some raw food stuff. Look at the cost of rent and other services it is going up daily.
“I used almost N700,000 to start this business. You will make sales and be unable to account for the money because when these companies bring a particular product, they will you they have added N100 or N200 to the price of a carton and what we make in a row is not up to N50.
“I nearly closed my shop last year because the frustration was too much.
“It was a friend that God used to save me from my state. She introduced me to a contribution where I can raise money if I am able to save N50,000 in two months.
“Any amount you want to borrow is given to you and you must keep up with the contribution even when you finish paying back what you borrowed. It helped me a lot because when your business is going down you can access the thrift and use it to save your business.
“Instead of going to the bank or borrowing from cooperative or other money lenders with high interest rates coupled with high blood pressure.”
Mrs. Sharon Apata, a provision seller said she had to close her shop for eight months to work as a stylist to raise capital for sustaining her business.
She said: “I was in debt and people were owing me too. My debtors were not paying and I was unable to pay those I was owing. The cost of beverages and other stuff I sell was increasing and I was using the money for one to cover up for the other while the profits were disappearing into the capital.
“I had to secure a stylist job at a fashion house for eight months where I was paid N70,000 monthly depending on the amount of clothes I was able to make. It was there I raised money to revive my business.
“It wasn’t an easy task but I saw the usefulness of the skill I acquired years back. It was not a waste. I couldn’t run to the bank because they will not even look at you twice. I don’t have a collateral and my business is dying. Their interest rates on loans are high too.”
Recall that the Central Bank of Nigeria, CBN, has raised the Monetary Policy Rate, MPR, six times to 27.5 percent before retaining it at that rate last month.
When there is increase in MPR, commercial banks and other financial institutions typically increase their lending rates, thereby making borrowing more expensive for individuals and businesses.
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