Finance Factory (FIFACT) in partnership with the National Service Secretariat (NSS), National Entrepreneurship & Innovation Programme (NEIP) and Tradeline Consult Ltd. has launched an initiative to support projects of Small Businesses in Ghana.
The initiative, which aims at creating jobs and relevant experience for young graduates, also envisions to help small and growing businesses to strengthen their operations.
FIFACT outlined the various roles to be performed by the partnered members by noting that Tradeline will develop robust, scalable and profitable businesses to attract investments for MSMEs, while NSS will support with the deployment of the graduates.
More so, NEIP will offload the SMEs of the YouStart Program to FIFACT as part of its sustainability plan. Thus, while NSS deploys young Business Development Officers (BDOs), NEIP will deploy SMEs to FIFACT.
According to a statement released, FIFACT revealed its motive to train 1,600 National Service Personnel as Business Development Officers, adding that; “They will work across sectors including agriculture, health, education, renewable energy and IT.”
“The project will target 55% of female participation to enhance gender inclusion. The project will allow each BDO to work with up to 20 MSMEs.
“Accordingly, it will target working with a total of 32,000 businesses in five years. With an average of 3 jobs per business, the project will create a total of 96,000 indirect jobs over the period.”
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Ghana’s growing workforce requires prioritization of MSME development. This will lead to formalizing their operations to absorb the thousands of graduates. New realties created by recent global crisis is generating buzz across several sectors. To survive, these start-ups and SMEs need support to adapt to good business practices.
FIFACT Notes ‘Lack of Finance’ As One Major Obstacle In Ghana’s Business Ecosystem
According to FIFACT, one sure way for Ghana’s economy to develop is to address the high informalities in the business ecosystem of Ghana, stressing that: “Lack of Finance is one of the most cited obstacles facing SMEs – leading to some operational challenges and inefficiencies.”
Some of these challenges, it stated, are poor structures and lack of management skills. Also, high loan default rates, poor records and accounting systems obstruct their businesses.
Besides creating jobs, FIFACT further communicated that when these challenges are resolved, beneficiary businesses will get the opportunity to overcome growth challenges.
Not limited to that, small businesses will have access to specific business development and management services, stating that: “This will be through various phases of their development at a cost affordable to them.”
“FIFACT will empower MSMEs to access investment and financing opportunities through the BDOs. The support includes a wide array of strategic and operational business services. These services include business training, consultancy and advisory services. Others are marketing, information technology development and technology transfer.
“Besides, SMEs need management of accounts, tax records and compliance with labour laws. FIFACT is partnering with relevant stakeholders to establish 16 regionals ‘Tradeline Business Hubs’ to provide business advisory services to SMEs.”
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