Coordinator for Ghana Startup bill technical committee, Sherif Ghali, has revealed that startups need mechanisms to cushion them until they start to make profit.
According to him, proactive measures are required to meet the structural needs of startups.
His comments follow a survey conducted by Venture Capital which reveals that about 40% of startups in Ghana do not make profit.
He made this revelation at a programme organized under the auspices of the Ghana Chamber of Young Entrepreneurs, Ghana Start-up Network, and the SNV Netherlands Development Organization, Ghana.
It formed part of the ‘GrEEn’ Project, aimed to create greater economic and employment opportunities for the youth, women and returning migrants.
“So, the stakeholders we are looking at are the startups, the business incubation service providers, the consultants and even the chiefs. Everybody that is concerned with the business development ecosystem, that’s the people we are looking at.
“The startup Act is looking at setting that incentive framework that will support the creation and development of startups in Ghana. How can Ghanaian businesses that are starting get that legal support to be able to scale up and create jobs for Ghanaians? That’s basically the idea of the startup Act”.
Sherif Ghali
Technical committee on Startup Act
Mr Ghali explained that the Act will provide a conducive business environment for entrepreneurship to thrive in the country.
“We are hoping to finish this by September so we can pass it to the Ministry of Communication and Digitalization so that they can also take it to parliament and parliament to read it and consider passing it. So, by September, the technical working committee work should be done”.
Sherif Ghali
On his part, business development advisor at SNV and Green Project, Frederick Acquah, revealed that the Act when passed into law will assist startup businesses to grow to create employment for people.
“The Act is unique in many sense. Of course, it’s going to guide startups in general, but we also want to consider secular businesses [and] green businesses”.
Frederick Acquah
Stakeholder consultation on Startup Act
Stakeholder consultation on the Ghana startup bill began back in November last year, with an intention of setting up a startup act in early 2021. Participants attended regional workshops across the country to give their views on what should be addressed by the legislation.
Dr. Ibrahim Mohammed Awal, the then Business Development Minister, in November revealed that a committee on the Startup Bill has been set up and will be put before cabinet for consideration and parliamentary approval.
The drafting committee comprised of the National Entrepreneurship and Innovation Program, Ghana Chamber of Young Entrepreneurs, Ghana Hubs Network, Ghana Start-up Network, i4Policy, and Private Enterprise Federation, among others.
When passed, the Startup Act will enable the formation of an incentive framework for the creation and development of startups. Also, it will create a legal backing for starting businesses and promoting startups for decent job and wealth creation
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