IN THE LAST TWO LESSONS WE HAVE LEARNT ABOUT DEBT FINANCING ABD EQUITY FINANCING. NOW IT IS TIME TO CHECK SOME OPPORTUNITIES FOR START-UP AND MICRO, SMALL AND MEDIUM ENTERPRISES IN GHANA WHETHER THEY CAN BE OF BENEFIT FOR YOUR BUSINESS.
FIRST OF ALL, YOU CAN GO TO THE BUSINESS ADVISORY CENTER (BAC) IN YOUR DISTRICT. THEY CAN GIVE YOU ADVICE, AND IF THERE IS MONEY IN THE BUDGET, THEY MIGHT EVEB GIVE YOU SOME FINANCIAL ASSISTANCE.
THEN THERE ARE SOME INSTITUTIONS WHICH OFFER ASSISTANCE, BUT SOMETIMES WITH CONDITIONS WHICH FOR SOME BUSINESSES – ESPECIALLY THE MICRO ONES – ARE DIFFICULT TO FULFIL:
- GHANA ENTERPRISE AGENCY (GEA, WEBSITE: https://gea.gov.gh)
GEA CAN ASSIST IN FUNDING, DEVELOPMENT OF MICRO, SMALL AND MEDIUM ENTERPRISES, ETC.
- 2) SME GROWTH & OPPOREUNITY PROGRAMME (WEBSITE:
https://sme-go.mofep.gov.gh/guidelines/gea
FOR MICRO AND MANY SMALL ENTERPRISES, THE GUIDELINES ARE NOT EASY TO FULFIL. NEVERTHELESS, THEY SKOULD BE MENTIONED HERE:
Minimum requirements for the G&O Programme
- SMEs must have majority Ghanaian shareholding (51% or more)
- SMEs must be considered as an SME as per the legal definition
- SMEs must be registered under Ghanaian law as a limited liability company, a partnership, or sole trader
- SMEs must meet the eligibility criteria for the product they apply to
- SMEs must comply with the Programme monitoring requirements
- SME must have been operating for 2 years or more
HOWEVER, THERE ARE SEVERAL PROGRAMMES OFFERED BY THE GEA; THEREFORE, IT MIGHT BE OF BENEFIT FOR OWNERS OF MICRO, SMALL, AND MEDIUM ENTERPRISES TO LOOK INTO THESE PROGRAMMES. THE BUSINESS ADVISORY CENTER (BAC) IN YOUR DISTRICT CAN SURELY CAN SURELY HELP YOU WITH YOUR RESEARCH.
THERE ARE ALSO SEVERAL APPS TO DOWNLOAD ON THE INTERNET, WHICH OFFER LOANS FOR BUSINESSES. YOU SHOULD, HOWEVER, BE VERY CAUTIOUS WITH THESE OFFERS. MORE OFTEN THAN NOT, THERE WILL EITHER BE PROBLEMS WITH EXTREMELY HIGH INTEREST RATES OR WITH PRESSURE THEY MIGHT EXECUTE ON YOU, IF YOU GET PROBLEMS WITH THE REPAYMENT.
FURTHERMORE, THERE ARE GOVERNMENT-BACKED PROGRAMMES WHICH ARE OFFERED THROUGH COMMERCIAL AND RURAL AND COMMUNITY BANKS. IF YOU ARE LOOKING FOR A LOAN TO HELP FINANCING YOUR BUSINESS, THEY SHOULD VE PREFERRED COMPARED WITH THE ONLINE LOANS, BECAUSE
— THE INTEREST RATES ARE USUALLY LOWER, AND
— IN CASE YOU HAVE PROBLEMS WITH REPAYMENT, YOU CAN ALWAYS TALK WITH THE LOAN OFFICER IN YOUR FINANCIAL INSTITUTION TO FIND A SOLUTION.
OFTEN, THESE PROGRAMMES ARE TARGETED FOR LOCAL COOPERATIVES; SO, IT IS ADVISABLE FOR A YOUNG E ENTREPRENEUR TO JOIN SUCH A COOPERATIVE.
YOU MUST GENERALLY BE VERY CAREFUL WITH FINANCING YOUR BUSINESS THROUGH A LOAN. THE AMOUNT OF LOAN YOU TAKE SHOULD NEVER BE MORE THAN 60% OF THE CAPITAL YOU ALREADY HAVE. IF YOU DON’T KEEP TO THAT RULE, YOUR BUSINESS IS SURELY CONDEMNED TO FAILURE.
AS ALREADY MENTIONED IN AN EARLIER LESSON, IF TAKING A LOAN FOR DEVELOPING YOUR BUSINESS IS TOO MUCH OF A RISK FOR YOU, YOU CAN LOOK OUT FOR AN “ANGEL INVESTOR”.
THE GHANA ANGEL INVESTOR NETWORK (CHECK THEIR WEBSITE UNDER Gain – Ghana Angel Investor Network )
COULD BE THE ORGANISATION YOU ARE LOOKING FOR. YOU CAN FIND A LINK FOR FUNDING APPLICATION THROUGH TIS LINK”:
YOU CAN ALSO CHECK THEIR PROGRAMMES FOLLOWING THIS LINK:
Ghana Angel Investors Network (GAIN) – Impact Investing (impactinvestinggh.org)
AND A PERSONAL HINT TOO: FROM FEBRUARY, 2025 ON RECKLING ENTERPRISE THROUGH ITSINVESTMENT COMPANY C.K.J. RECKLING STAR WILL OFFER TWO FINANCIAL ASSISTANCE OF GHC 3,000 EACH TO MICRO BUSINESS START-UPS FOR A 25% SHARE IN THE BUSINESS. INTERESTED ENTREPRENEURS-TO-BE SHOULD COnTACT US THROUGH THE EMAIL ADDRESS recklingenterprises@hotmail.com FROM BEGINNING OF JANUARY, 2025 ON. FURTHER CONDITIONS WILL THEN BE DISCUSSED WILL THEN BE DISCUSSED WITH THE APPLICANTS.
AND NOW TO THE QUESTIONS:
- WHAT ARE THE CONDITIONS OF THE GHANA ENTERPRISE AGENCY (GEA) FOR PARTICIPANTS-TO-BE IN THEIR PROGRAMMES?
- WHY IS IT DIFFICULT FOR OWNERS OF MICRO AND SMALL ENTERPRISES TO FULFIL THE CONDITIONS OF THEIR PROGRAMMES?
- WHAT INFORMATION DOES THE GHANA ANGEL INVESTOR NETWORK WANT TO HAVE FROM AN APPLICANT?
- IS THERE AN ANGEL INVESTOR IN YOUR DISTRICT?
- ARE YOU GENERALLY INTERESTED IN THE OFFER MADE BY RECKLING ENTERPRISE?
THE NEXT LESSON WILL FOLLOW AT THE BEGINNING OF NEXT WEEK.
