KADSTEP entrepreneurs and the troubles ahead
The Kaduna state government in collaboration with the Kaduna Business School has done a very good and fantastic job of creating a team of young, promising and enterprising entrepreneurs with un-matched skills and attitude that could propel them become the drivers of any economy given the right atmosphere. This was achieved through the commitment of […]
The Kaduna state government in collaboration with the Kaduna Business School has done a very good and fantastic job of creating a team of young, promising and enterprising entrepreneurs with un-matched skills and attitude that could propel them become the drivers of any economy given the right atmosphere. This was achieved through the commitment of the state government toward the KADSTEP project and the expertise of the Kaduna Business School in breeding the young, emerging entrepreneurs.
The notion of creating employments and empowering the many young graduates in Kaduna State informed the idea of KADSTEP. The first batch of the selected KADSTEP participants has successfully finished the training and 15 out of the 270, who have scored 2.75 and above were given offer letters by the Bank of Industry to finance their various business plans. This offer letters contain some conditions precedents to drawdown. These conditions are the many troubles, hurdles, and challenges facing the graduating Kadsteppers and have make it almost impossible for them to access the BOI loan.
Ten percent equity contribution on the proposed amount requested would have to be provided by the beneficiaries before drawdown. Two independent guarantors, who have certified landed structures, must indemnify the bank in the event the beneficiaries would not be able to honor their obligations. These and other conditions resulted in the in ability of the participants to apply for the BOI loan and also accounted for only 15 out of the 270 participants who got the offer letters. Less than 6% is not encouraging and does not reflect the empowerment and employment drive of the state government.
The 10% equity contribution should be waived, or the state government should graciously provide the equity contribution so as to encourage participants access the BOI loan. The participants’ certificates can be held in trust by the BOI pending the full repayment of the loan.
The commitment, resilience and performance of the graduating Kadsteppers is enough a guarantee. Kaduna state government should also serve as a guarantor to the participants as they were screen, selected and offered the opportunities by the state.
Over 80% of the participants are struggling very hard to get the 10% equity contribution which is not forthcoming and also, the terms in the guarantors form are scaring the guarantors.
Bashir Yahaya, Zaria, Kaduna State.