THE DILEMMA OF THE INDIGENOUS GHANAIAN ENTREPRENEUR

In the world of entrepreneurship, if seeds were ideas, water would be funds. It is inevitable the success or otherwise of a business firm depends on a lot of factors and funding is chief among them. Sufficient funds give the freedom to an entrepreneur to implement his/her ideas in a natural free flowing manner. I believe availability of enough funds for start-ups is a lynchpin between ideas and businesses. The importance of funding in a business be it social/commercial cannot be underestimated.

the demise of Merchant Bank says all about the favouritism shown by state banks             credit; rokfmonline

It is a very sad to see that due to unavailability of funds, multi-billion dollar business potentials are shattered in Ghana. Even the ones that are able to strive in the harsh financial ecosystem in the country do so in so much anguish that they also deliver below par, and never reach their full potential.

I am not insinuating that the survival of a business firm is solely dependent on funding but l have realised that the business czars that we could produce are somewhere below the poverty line due to lack of funding. I am aware to be an accomplished entrepreneur; one has to roar across the turbulent waves of funding expertly. 

Also, l have listened to a lot of motivational speakers in the past- and still on-going- one should not focus on money when one sets out to establish a firm, but l do not concur fully.

Looking at the annual turnovers of the indigenous companies in the country as compared to the foreign ones, there is a huge gap. This gap is mainly due to the varying financial muscles of the various firms. Now you understand when l tell you that the motivational speakers speak just for the sake of motivation. How many indigenous companies have had an annual turnover of at least $100m since three years ago? Are we trying to suggest that the foreign businessmen understand the marketing dynamics in the country more than the indigenous businessmen? In any case, it is the locals who work for these multi-million foreign firms in the country. Why have we not got any locally owned telco? Let us forget about the text book talks and face the pressing challenges;

To start with, the private banks and investment firms have failed at financing the Ghanaian entrepreneur. There cannot be any excuse from banks in Ghana on part of their failure to adequately finance the Ghanaian entrepreneur. At best the private banks give meagre loans at ridiculous rates to the poor indigenous entrepreneur. I cannot recall from the facts the last time a Ghanaian entrepreneur was granted a loan of $20m by either a private bank or investment firm in the country.

UT Bank; a model of Ghanaian excellence       credit; utbankghana

It is high time the private banks began to stock out the cash with believe in the Ghanaian entrepreneur. The avalanche of foreign entrepreneurs trooping in the country on daily basis is enough proof of the revenue capacity Ghana hosts. In the usual event of lack of trust in the Ghanaian entrepreneur by the financial firms, a part ownership agreement of the project could be struck. Furthermore, the part ownership approach allows the banks and investment firms to gain their huge interest returns although the actual rate is lower in principle. The banks should stop playing it safe with the government syndicates and treasuries.

In addition, the government is most culpable when it comes to empowering the Ghanaian entrepreneur. Quite paradoxically, the state is at chance to benefit largely when we harbour multi-billion dollar firms in the nation. The Kuffour administration started with the comedies of funding initiatives but l have been absolutely stunned by the Mahama approach. EDAIF, YES and GYEEDA, just name them; these are all initiatives for elementary school pupils who want to take lessons in business management. I am overwhelmingly disappointed in the government of the current and all governments of the past on their approach- if there was even one-to funding.

The state owned banks are also not helping the course of the Ghanaian entrepreneurs. It is a shame to know that families and affiliates of the leaders of our nation get fat loans from the state banks when more viable business ideas from the ‘’common man’’ gets peanuts or no funding at all. Ever heard of the collapse of erstwhile Merchant Bank?

The state must adopt a paradigm shift if we are to get any solution to the menace of funding of the indigenous entrepreneur. If not for anything let the managers of our economy be motivated by the results that would be produced if the indigenous entrepreneur is well funded.

GCB;the hope of  any transformation in the state banking sector        credit:gcbbank

Finally, the citizenry at large needs to aid the home-grown entrepreneur. We just need to cultivate the habit of investing and learn to make smart investment decision. An Ewe sage is translated ‘’when the mouth over-fulls, the beard gets its share’’

Funding is a big deal more so in a country like Ghana with all the potentials. It is evident from the success of the bigwigs in the Silicon Valley the huge role funding plays in a business establishment.