Business Development Minister, Dr. Ibrahim Mohammed Awal, has disclosed that developments are ongoing to present a startup bill that will produce a favorable environment for small businesses in the country.
Speaking with the media at the 3rd Ghana Business Awards, he stated that the bill when passed into law will exempt startup businesses from paying taxes for up to eight years.
He further intimated that it will not only increase businesses but will also make entrepreneurship more appealing to the youth, which will further broaden the nation’s economy.
“In the next few weeks, we are going to present a bill to cabinet, startup bill, where this bill will seek to provide tax holiday for startups after eight years. So, for every startup when you start your business, for eight years to ten years, you’ll not pay taxes.
“The exercise is to encourage young people to grow, plough back their profit and expand their business”.
Commenting on the current stage of the startup bill and government premise for canvassing for the implementation of the startup bill, Dr. Awal indicated that, it has become imperative due to the volatile nature of businesses falling apart after few years of establishment.
“In Ghana, the small businesses constitute over eighty percent of it, and they contribute about sixty five percent to GDP, but the startup economy is not the best in this country. When businesses start up, they don’t last. The statistics show that, only fifty percent of businesses go beyond their founders and it’s very bad.
“It means that out of every hundred businesses, only fifteen survive when their founders exit; either death or retirement, this is not good”.
Speaking on government’s plan for small and medium enterprises amid the covi-19 pandemic, Dr. Awal stated that SMEs mobile clinic will be introduced to visit and educate all operators across the country.
“Because of the pandemic we are going to start what we call the mobile SME clinic, where we send mobile business to all SMEs in the country. The first three months is target one million SMEs, build their capacity so that they can get back to business, and create jobs for young people.
“We intend to generate about GHC 10 billion from this mobile clinic, because if you give these startups the training; marketing, pitching, branding, financial management etc. they will be able to bounce back and create jobs for the people.
“So we want to urge everybody that when mobile SME clinic comes, please patronize them. Already under the CARES programme, government is providing over GHC2 billion to support SMEs”.
Recipients for the business awards totaled seventy two and the awards were presented to companies and personalities for their excellent work at the Ghana Business Awards night.
The founder of the Fidelity group Edward Effah was pronounced the chief executive officer of the decade.
Also, Dr. Joseph Siaw Agyapong of the Jospong group of companies, was also adjudged the best entrepreneur of the decade.
Goldfields Ghana’s Chief executive officer, Alfred Baako emerged as the CEO of the year for the private sector category, whilst Dr. Ben K. D Asante of the Ghana National Gas Company, was declared CEO of the year (public sector).
Similarly, Vodafone Ghana was also adjudged the winner for the brand of the year, whereas EcoBank Ghana won the company of the year award.
