Lack of business plans said to be hindering business growth in Ghana

Mr Kofi A. Sarpong, an Investment Analyst at Venture Capital, on Thursday observed that many enterprises had failed to grow in Ghana due to lack of business plans and vision.

He said the problem could also be attributed to the inability of business persons to take risk, adding that many entrepreneurs had shrouded their businesses with myth and are not allowing people with business expertise to assist them to expand to higher profits.

Mr Sarpong said some entrepreneurs also insist on sole ownership of their businesses and therefore avoid opening up to partnership and co-operatives to enable them to access support for expansion.

He made the observation at a sensitisation programme in Wa, dubbed: “The Road Show,” to introduce the work of Venture Capital Trust Fund (VCTF) to business persons in the Upper West Region.

“It is high time they get away with the old ways of doing things and embrace new ways by complying with the global world trend so as to allow others to run their businesses with them,” he said.

Mr Sarpong said business persons in the region are all qualified to apply to the fund for financial and technical support provided they have the vision to grow their businesses.

The requirements include registration of business as a company or limited liability, tax clearance, business plan, and a partnership or co-operative.

Mr Sarpong explained that the fund does not give loans with high interest rates but rather facilitate partnership with clients and contribute 49 per cent to the business and support it to run professionally.

He said the fund, which was started five years ago had invested in education, health, manufacturing and agriculture and is at present engaging farmers to cultivate sorghum and Soya bean.

Mr Sarpong noted that the region contribute 80 per cent of sorghum to the beer brewery companies.

He said the vision of the fund was to create a vibrant and well structured venture capital industry that could boast of investment in various sectors of the economy and lead to poverty reduction through job and wealth creation with a collateral growth in government revenues.

Mr Sarpong said the fund was mandated to provide credit and equity financing to eligible venture capital finance companies to support small and medium scale enterprises and provide money to support other activities and programmes.

Mr Amenu Salifu, Wa East District Chief Executive, who chaired the forum urged VCTF to make its operations accessible devoid of bureaucracy, to serve as disincentive to private businesses.

Source: GNA

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