ERS

SAVINGS AND INVESTMENT

ERS SAVINGS AND INVESTMENT

Join on the journey to a secured financial future

Login View Plans

Importance of Business activities in an economy.

Business is extremely important to a country’s economy because businesses provide both goods and services and jobs (its not in the responsibility of the government to provide jobs for her citizens, its solely the responsibility of the people in businesses, the government is to provide workable environment for businesses to survive in. Businesses do these things much more efficiently than individuals or government could on their own.

Businesses are the means by which we get most of the goods and services that we, as consumers, want and need. Almost everything that you use in your everyday life was produced by a business and sold by yet another business. Without these businesses, it would be very hard for us to get the things we need both as individual and as a government. This is a major reason why businesses are important for a country’s economy.

Businesses are also the means by which many people get their jobs. Businesses create job opportunities, people are needed to produce and sell their goods and services to consumers, Without businesses, each individual would have to create his or her own way of making a living. Without these things, nations’ economies would be much smaller and weaker than they are. As a matter of facts, an Economy’s level of growth and development is measured by the level of business activities in that economy.

Failure of businesses in Africa as against huge success in the western world.

Most businesses in Africa struggles to survive, the environment for businesses to strive is so discouraging, most people with business ideas end up not living to see their business ideas come through, and that’s why there is a popular saying in Africa ‘’the grave is filled with so much ideas buried”. So many other factors has led to the natural death of businesses In africa, the weightier of all is startup Capital of which access to is very faint or non existing and despite the fact little access to capital sparingly exist the cost of securing one is skye rocketing (Commercial banks loans is around 21%-24%, Micro finance loan is around 35%).

There are 4 major sources of Capital for a business start-up.

  • Fund from selling off inherited properties

  • Lottery/Luck fund

  • Personal long term savings

  • Loan/Borrowing

map

Failure of businesses in Africa as against huge success in the western world.

In the case of the Americans, the government give grants to any american with a viable business idea with very good SWOT analysis. They give grants not loans unless in recent times where their commercial banks give loans too on a very low payback interest using LIBOR(London Inter-bank offer rates) which is usually between 2%-3% PA.

The government give grants because they believe when the business starts doing well, the business will take some people off the street which will help the economy’s unemployment rate and also in the long run they keep collecting taxes (income,sales, profit and value taxes). This is why most businesses in America operates formally and strives very well because of flexibilities in funding. One of the major reasons we got American government issuing Visa Lotteries to most underdeveloped country’s citizens is because most Americans don’t look for Jobs rather they create one, so the government have to seek for labor for them externally.

In the case of China, the government gives free of charges Loans to her citizens with good business ideas, this is one of the reasons Yen is considered a safe haven(just like the USD its value is equal or greater than Zero,). This is to encourage the citizens more and not frighten them from accessing loans to execute their business ideas. irrespective of the time of repayment, they only return what was borrowed without interest.

In Africa most especially Nigeria, most businesses end up folding up because they could not meet up with the repayment planned, as the creditors give no time for business stability in servicing the loan collected and moreover the repayment interest kills the business faster. The way repayment of loan is structured in Nigeria is that interest on loan collected are mostly collected before the main capital by the creditors(Amortization structure) businesses are only given maximum 1 month of repayment after which stories of unavailability of structured repayment will not be tolerated.

The Very Key reasons businesses fail to survive or grow in Africa most especially Nigeria

Most business in Nigeria /Africa operate informally, they keep no records of their actual inflow and outflow, most of them cannot put a clear cut line between their business finances and their personal money. For this singular reasons they dip into the business’s finances unknowingly which at the end of the day renders the business’s capital base weak, leading to the owner seeking rescue funds as loan from commercial banks or micro finance banks under minding the repayment interest charge because of the pressure they avoidably put themselves into which will also throw the entire business into further fall at the end of the day. Its quite heart breaking to find most business men stagnated for years practicing same businesses without any sign of growth or change. The woman operating small shop assorted item sales on the street still operate at same level for years without evident growth or change.

These all happens because most of them operate informally without structure and discipline most of them fold up because they owe loans repayment, some have lost their shops because their creditors already took over their shops stocks for auctioning as a result of repayment default.

Ers savings and investment solutions

After noticing all these major reasons businesses fail to strive or experience growth in Nigeria, in the likes of Loan seeking and informal operational structure, ERSNETWORKS has come up with a business growth plan and a structured plan for every of her members/partner that truly want to experience growth in their business path called the ERS savings and investment fund management. In this business model we help our partners to experience the growth they ever envisage in any kind of business they venture in by building a business plan for them in favor of their businesses. most business no matter how small its being operated makes income on a daily bases which may not reflect evidently causing a natural growth in the business, but because of high level of unnecessary spending on those income which had been a major nightmare for all growing business, causing massive slowdown on the businesses growth path. We engage our partner on a steady daily savings which they can discretionally rollover into investments at the complete of a monthly cycle and a steady monthly investment plan. All these are contained in our savings and investment plan. These business plan also put into consideration those businesses under the pipeline (in planning process) We have discovered based on our research that the best way to raise funds for our businesses is by having a planned accumulated savings either on a daily bases for business people or monthly bases for salary earners who has plans of doing their own business in the future, because loan kill most business faster than we ever thought it rescues.