De-risk SMEs to improve finance access – GCYE CEO

By Kingsley Webora TANKEH

Chief Executive Officer-Ghana Chamber of Young Entrepreneurs (GCYE) Sherif Ghali has called on government to prioritise the establishment of a women’s bank and formulate policies that will help de-risk SMEs to improve finance access for business growth and development.

Despite the fact 92 percent of businesses in Ghana are SMEs, contributing about 70 percent of GDP, many of them fail within a short period due to multiple factors including inaccessibility to finance opportunities.

In view of these glaring challenges that plague the SMEs ecosystem in Ghana, the Ghana Chamber of Young Entrepreneurs has developed a roadmap that seeks to take away barriers which hinder the growth of women and youth-led businesses.

Speaking at the GCYE National Business Agenda launch, Ghali stressed that SMEs should not be precluded from accessing finance opportunities simply because they are deemed risky at the early stages of business.

He however emphasised financial institution requirements urgently need reviewing to allow SMEs patient capital access for growth.

“You cannot give patient [capital] to youth and women businesses when the Public Financial Institutions still use old requirements – which women and youth-led businesses don’t have,” he noted.

Despite numerous youth development and SME-centred initiatives undertaken by successive governments over the years, the National Youth Authority (NYA) governing board member argued that there has not been any business to spring up from these initiatives and become a profit making business.

He however pledged the Ghana Chamber of Young Entrepreneurs’s commitment to changing this narrative through the National Business Agenda, which spells out targetted policies and calls for synergy among all relevant stakeholders – government, National Youth Authority, CSOs and donor partners – to make SMEs viable, grow and then scale up.

He underscored lack of proper targetting as a major factor that hinders these government initiatives’ success and urged government and other relevant stakeholders to adhere to the roadmap laid out by the chamber in order to ensure that Ghanaian women and youth-led businesses grow and thrive.

He stressed that the National Business Agenda’s goal is to make tangible impact in SMEs and women and youth-led businesses.

“The end goal is being able to say that at least 10,000 women and youth businesses have been supported from one or two employees, now they have 10,” he emphasised.

“I am happy that government has decided to target 10,000 youth in the Ejumaura programme to train and build their capacities but fund only 2,000. This is targetted – and that is how we have to go,” he stressed.

“But you know that one of the problems is we say we want to fund this 2,000 [youth businesses], but before you realise 90 percent of them are overnight entrepreneurs that are created from political party faithfuls,” he noted.

He however charged government to wean the selection process of any political influence by appointing an independent body to select and disburse the funding, stressing that this will attract the interest of donor partners to support through funding.

As a country with a vibrant youthful population full of insightful and innovative ideas, Sherif expressed concern over the absence of youth on the 18-member Accelerated Export Development Presidential Advisory Committee that was inaugurated recently by President John Dramani Mahama.

He however commended President Mahama for keeping his promise and taking this bold step to spur growth of the country’s exports.

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