• Latest
  • Trending
Kormi Courage Amese

How Ghana’s history is hurting Entrepreneurship

February 24, 2025
Resetting The Nation: Mahama Urged To Back Rhetoric With Decisive Action On ORAL And Galamsey-Oppong-Fosu

Resetting The Nation: Mahama Urged To Back Rhetoric With Decisive Action On ORAL And Galamsey-Oppong-Fosu

September 25, 2025
Running a small business is demanding. Each day presents challenges that can affect your cash flow, your customers, and your ability to grow. Amid these demands, it is easy to lose sight of long-term financial priorities. However, businesses that last are not only those with good products or strong customer service. They are often the ones with better financial habits. This article outlines seven essential points that will help SMEs manage their finances more effectively, reduce risk, and plan for growth. 1. Start with a Clear Financial Plan A good financial plan gives direction to your business. It helps you set targets, allocate resources, and make informed decisions. Start by defining your financial goals. These should be SMART - specific, measurable, actionable, realistic, and tied to timelines. For example, you should determine how much revenue you need each month, what level of production or service delivery is required to meet that target, and how you intend to achieve it. Once your targets are clear, you will need a working budget. A good budget helps you monitor income and expenses, manage cash flow, and ensure that your business remains on track. It also provides a basis for deciding what to prioritise and what to postpone. At its best, your financial plan should help you answer key operational questions such as what resources are required to operate or grow, where those resources will come from, what they will cost, and whether your business is in a position to take them on. Planning in this way reduces uncertainty and allows you to run your business with greater clarity and confidence. 2. Maintain Accurate Financial Records Accurate financial records are essential for any business. Whether you are managing day-to-day operations, planning for future growth, or applying for funding, clear and reliable financial information allows you to make sound decisions. Many small businesses struggle in this area due to time constraints, limited expertise, or a lack of systems. However, proper record-keeping should never be overlooked. It supports internal decision-making, strengthens external credibility, and improves your ability to respond to opportunities or risks. Business owners can start by gaining basic knowledge of accounting principles and tools. Training employees in simple record-keeping practices also helps to build internal capacity. In some cases, it may be worthwhile to engage professionals who can help you put the right systems in place and prepare essential reports at a cost that makes sense for your business. 3. Choose a Banking Partner Aligned with Your Goals The right banking relationship can make a real difference to your business. A bank like Absa Bank is more than a place to keep your funds. It is a partner that can support your operations, guide your financial planning, and help you take advantage of growth opportunities. Begin by understanding your business needs. These might include working capital support, payments and collections services, or trade finance. Once your needs are clear, assess whether your bank offers the right mix of services, accessibility, and expertise. Your banking partner should make it easier to run your business, not harder. They should share your ambition to grow, be responsive to your concerns, and provide solutions that are tailored to the stage your business is in. A strong banking relationship will give you confidence and peace of mind as you build your enterprise. 4. Deploy Effective Payment Solutions Revenue is the foundation of every business and the way you go about collecting it is key. In today’s economy, customers expect fast, simple, and secure payment options. If your business only accepts cash, you may be turning away potential sales without realising it. Providing customers with flexible payment options is no longer a luxury. It is a necessity for growth and long-term relevance in a digital economy. Offer customers alternatives such as instant bank transfers, mobile money, card payments through point-of-sale devices, or more innovative solutions like Absa Mobi Tap to improve your customer experience and increase your reach. These methods reduce delays, enhance transaction security, and demonstrate professionalism. 5. Meet Statutory Obligations Promptly Every business has legal and regulatory responsibilities. These include filing and paying taxes, submitting Social Security and National Insurance Trust contributions, and meeting other sector-specific requirements. Complying with these obligations on time helps you avoid penalties and disruptions. It also builds your business’s reputation and improves your standing with financial institutions and regulators. To stay compliant, you should adopt a legal structure that suits your business model and goals. You may also wish to seek legal or tax advice at key points in your journey. Planning ahead for obligations such as annual tax payments or quarterly filings ensures that you are not caught off guard. Meeting your statutory responsibilities consistently is a mark of a well-run business. 6. Manage Your Risks Running any business involves risk. These risks may include delayed payments from customers, unexpected costs, economic downturns, or even natural disasters. For small businesses operating with limited resources, such events can be difficult to absorb. This is why risk management must be part of your financial routine. Start by identifying the main risks that could affect your business. Put in place basic measures to protect your operations. This could mean setting aside emergency reserves, purchasing insurance, or diversifying your income streams. Being proactive about risk does not eliminate uncertainty, but it helps you stay in control when challenges arise. It also signals to lenders, partners, and customers that your business is prepared and resilient. 7. Separate Business and Personal Finances It may be tempting to treat your business account as your personal wallet, especially in the early stages. However, failing to separate your business and personal finances can lead to confusion, tax problems, and credibility issues. As a business owner, you should pay yourself a fixed salary. Avoid withdrawing funds at random or covering personal expenses with business income. If you invest personal funds in the business, document it properly as a loan or equity contribution. Keeping your finances separate helps you maintain clear records, assess business performance accurately, and present your enterprise in a more professional light to partners, banks, and regulators. At Absa Bank, we believe that strong financial habits form the backbone of every successful enterprise. Our commitment is to walk with our clients and customers at each stage of their journey, providing guidance, tools, and solutions that help SMEs grow sustainably and with purpose.

Financial Habits Every SME Must Adopt: The 7-Point Check List

September 25, 2025
New Tullow CEO meets Ghana President

New Tullow CEO meets Ghana President

September 25, 2025
Kumasi Businessman Wins Brand New Car in 13th Telecel Dream Car Promo

Kumasi Businessman Wins Brand New Car in 13th Telecel Dream Car Promo

September 25, 2025
Telecel Ghana Holds AI Workshop for Young Entrepreneurs for SME Month

Telecel Ghana Holds AI Workshop for Young Entrepreneurs for SME Month

September 25, 2025
Mahama Renews Africa’s Demand for Permanent Seat on UN Security Council

Mahama renews Africa’s demand for permanent seat on UN Security Council

September 25, 2025
Abandoned Mallam market structure to Be demolished-Ablekuma North MCE

Abandoned Mallam market structure to Be demolished-Ablekuma North MCE

September 25, 2025
Galamsey fight: You can’t repeat the same mistakes and expect a different results – GSSMA warns government

Galamsey fight: You can’t repeat the same mistakes and expect a different results – GSSMA warns government

September 25, 2025
Education Minister vows transparency in SHS placement, warns against system abuse

Education Minister vows transparency in SHS placement, warns against system abuse

September 25, 2025
Cyber Security Authority warns high school graduates against indecent social media posts

Cyber Security Authority warns high school graduates against indecent social media posts

September 25, 2025
Over 1,000 Indonesians sick from school meals in more food poisoning outbreaks

Over 1,000 Indonesians sick from school meals in more food poisoning outbreaks

September 25, 2025
Free SHS Secretariat urges Parents to accept School Placements

Free SHS Secretariat urges Parents to accept School Placements

September 25, 2025
Happy Ghana
Advertisement
No Result
View All Result
  • Home
  • News
  • Sports
    • International Sports
    • Afcon2017
    • Afcon2019
    • Corporate Knockout
    • U17 World Cup
    • World Cup 2018
  • Entertainment
  • Business
  • Bizarre
  • Feature
  • More
    • Technology
    • Opinion
    • Lifestyle
  • Listen Live
  • Home
  • News
  • Sports
    • International Sports
    • Afcon2017
    • Afcon2019
    • Corporate Knockout
    • U17 World Cup
    • World Cup 2018
  • Entertainment
  • Business
  • Bizarre
  • Feature
  • More
    • Technology
    • Opinion
    • Lifestyle
  • Listen Live
No Result
View All Result
Happy Ghana
No Result
View All Result
Home Opinion

How Ghana’s history is hurting Entrepreneurship

in Opinion
Kormi Courage Amese
Share on FacebookShare on TwitterShare on Whatsapp

Like many other African countries, Ghana is still dearly paying for the unfortunate events of the 1970s. These events were generally characterised by chaotic military regimes, unsustainable debt accumulations the incessant appetite for state-run businesses with some being fallouts from Cold War machinations. The earlier socialist development agenda of Dr Kwame Nkrumah was focused on building and maintaining state-owned enterprises.

Subsequent policies were also targeted at import substitution-based manufacturing which in many cases failed because of their heavy reliance on imported raw materials. Some of these state-run institutions had become burdens to the state since they were not efficiently run hence unprofitable. They constantly needed budgetary support to survive.

Since the implementation of the structural adjustment and the economic recovery programs in the 1980s, evidence shows that the private sector has not significantly responded to government policies as intended with donor partners i.e., IMF & World Bank.

Even though these programs achieved some significant macroeconomic successes like keeping inflation under control and opening up our economy to foreign trade, many microeconomic imperatives have largely failed to respond.

Successive governments before the fourth republic didn’t see the need to actively encourage the expansion of the private sector. Most of them rather saw the private sector as a threat to the state’s power. Evident of which was the closing down of businesses of some prominent Ghanaian Entrepreneurs. These unfortunate incidences reduce confidence in the private sector. A situation where entrepreneurs were careful not to grow their businesses beyond certain levels so as not to draw the attention of certain political actors

Conventionally, economic development goes through three stages; primary agriculture leads the way for manufacturing and then the services sector follows. Manufacturing is essential because it has the potential to significantly increase employment, improve productivity and also tremendously expand the export base of the country. Unfortunately, the story of Ghana has been different where from primary agriculture we generally leapfrogged into the services sector. This has denied us the ability to take the full advantage of manufacturing. Our services sector represents more than 50% of GDP whiles manufacturing represents just about 30%. Agriculture employs more than 50% of our total workforce but its contribution to GDP is consistently falling to about 17%.

Education births Innovation

Innovation is key to the birth of entrepreneurial development of every economy. This innovation is driven by the quest by men and women (mostly young) who either want to improve on existing products and services or create totally new ones. Education and innovation are positively corelated because the logics, patterns and theories that support the innovative process are largely acquired through education and skills training. Unfortunately, our educational systems over the years mainly focuses or churning out graduates in the social sciences with courses designed by colonial masters to prepare them for civil service and not for analytical problem solving.

Financing the risk

The challenge with financing for entrepreneurial projects in Ghana cannot be overstated. History has shown that Ghanaian banks have become very comfortable charging larger spreads (risk premium) above the risk-free rates, they attribute it to risk. It is however perplexing why a country like Nigeria (131th) with a higher risk of “Doing Business” has lower lending rates than Ghana(118th). Unfortunately, no entrepreneur can sustainably build a business with a 25% interest loan in Ghana whilst our counterparts in Kenya are paying 11.7%. These loans are short-termed and mostly need collateral with three years of financial statements, etc. The promise of equity financing is gradually becoming a mirage to the average entrepreneur in Ghana. They are either non-existent or insignificant to drive the industrial growth Ghana truly needs through its entrepreneurs.

Read also: “Gov’t to establish committee to look into compulsory acquisition of lands” – Prez Nana Addo to Ga Chiefs

Taxes and the Taxman

News about revenue shortfalls by the Ghana Revenue Authority (GRA) does not excite entrepreneurs like myself. This is because this news only gives us a signal that tax officers will be harsh with us in the following year. GRA officials are handed targets from policymakers that must be raised even if it means overburdening small businesses with discretionary tolls and levies. One would have thought that the GRA would rather publish news about the improved profits of small-scale businesses and how that contributed to the taxes they have collected.

In Conclusion:

History has taught us that state-run businesses are unsustainable in the long-term and that private entrepreneurs can drive the growth of this country by creating jobs and helping eradicate poverty. Our educational system which is essential to tooling our entrepreneurs needs an urgent reform to conform with 21st century realities. The financial sector’s appetite for short-term debt needs modification through government incentives and the tax authorise need a new approach especially to SMEs to encourage them grow sustainably.

Fortunately, the African Continental Free Trade Area (AfCFTA) presents the potential for a huge market to support our businesses but failure to ensure that we get our basics right could make AfCFTA’s advantages elude us.

Kormi Courage Amese

The writer is a serial entrepreneur, a consultant and a philanthropist. His passion is for the development of Africa through aggressive entrepreneurial initiatives. He runs a blog and video series called Consider.

www.kcamese.com/consider

kc@kcamese.com

Subscribe to receive notification everytime a new post is published. We promise to be discrete.

Unsubscribe
Previous Post

I wanted fairness, not the money- Abass Mohammed on reporting Kotoko to PSC

Next Post

Anlo Chiefs unhappy about gov’t ‘hijack’ of Rawlings’ funeral – George Loh

Next Post
Anlo Traditional Council breaks silence on Rawlings’ funeral snub

Anlo Chiefs unhappy about gov't 'hijack' of Rawlings' funeral - George Loh

Search

No Result
View All Result

Listen Live

Happy Kaseɛbɔ 600AM news bulletin
Happy Kaseɛbɔ 600AM news bulletin

BBC Match of the Day Africa

Happy Ghana

Recent News

  • Resetting The Nation: Mahama Urged To Back Rhetoric With Decisive Action On ORAL And Galamsey-Oppong-Fosu
  • Financial Habits Every SME Must Adopt: The 7-Point Check List
  • New Tullow CEO meets Ghana President
  • About
  • advertise
  • Privacy Policy
  • Contact Us

© 2025 Happy FM – Powered by Ghana’s leading radio network. Designed with passion by Global Media Alliance.

No Result
View All Result
  • Home
  • News
  • Sports
    • International Sports
    • Afcon2017
    • Afcon2019
    • Corporate Knockout
    • U17 World Cup
    • World Cup 2018
  • Entertainment
  • Business
  • Bizarre
  • Feature
  • More
    • Technology
    • Opinion
    • Lifestyle
  • Listen Live

© 2025 Happy FM – Powered by Ghana’s leading radio network. Designed with passion by Global Media Alliance.