Funds invested by participating banks shall be in the form of equity investment in eligible industries. Equity investment may be in the form of fresh cash injection and/or conversion of existing debts owed to participating banks into equity investment.

A participating company may obtain more funds by way of loans from banks in addition to equity investment under the scheme. Eligible industries may approach any bank including those they presently have a relationship with or the ones which they do not have a relationship with Banks may operate the scheme directly through their wholly-owned subsidiary venture capital companies floated by a consortia of banks. Prospective beneficiaries should seek the opinion of third party consultants like lawyers, Accountants and Valuers determining the value to be placed on the asset and the capital of their businesses to enjoy a fair price before and during negotiations with Banks.

Membership of recognised NGOs engaged in entrepreneurial development and promotion of small scale industries will also be an advantage The recommendations of industrial associations (e.g. MAN,NACCIMA, NASME, NASSI, etc) SUGGESTONS FOR THE SME PROBLEM Since SMEs require in the pre and post stages finance, BDS providers could play a key role in providing resources and elaborating programmes dedicated to increasing the knowledge and competencies of SMEs. Continuous enlightenment campaign by the CBN and the banking industry,and Pre investment exit arrangements included to Memorandum ofunderstanding(MOU)/Shareholders Agreement.

Nigerian entrepreneurs should be ready to institutionalize the company , separate it from self and be ready to be ‘helped’. Government has an important part to play by ensuring a conducive environment, capacity building, infrastructure, regulatory and legal framework.Government must ensure a stable political environment .