Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)

Abstract

An Examination of Financing Practices of Social Entrepreneurs in Nigeria: A Study of Selected Non-Governmental Organisations

Author(s): Adele Hasimiyu Ademola,Oladele Patrick Olajide,Afolabi Yakibi Ayodele,Agboola Jacob Olusola

The realisation that both public and private sectors, operating in an imperfect market, are unable and cannot meet all demands has necessitated the advent of voluntary sector, to articulate the needs and provide critical services to the general people. To be able to deliver social value sustainably, enterprises must gain access to reliable financing. Thus, this study employed qualitative approach to investigate the nature and characteristics of financing options available to social enterprises operating in frontier countries, such as Nigeria. Primary data obtained through personal interview (on e-ach NGOs, Executive Director) and structured questionnaires administered on 147 officials (Administrative staff in finance function) of selected NGOs, operating in the health sector, were analysed with the aid of descriptive statistical tools to determine their financing options of preference. Findings revealed that NGOs show strong preference for traditional financing options except debt and equity financing. The study concludes that practitioners, desirous of delivering social values at needed magnitude, must possess appropriate business model, promising technology, production capacity, as well as replicable innovation while remaining a social mission-oriented outfit. Policy interventions should consider emerging and innovative options to enhance NGO capacities to address global challenges and development, where market mechanism fails to deliver social values on continuous basis, while reducing wastages in government expenditures through value-for-money collaborative model.

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