Business News of 2014-06-16

Corporate governance vital for business growth

The Chief Executive Officer (CEO) of the Private Sector Development Strategy, Mr Joe Tackie, has challenged small businesses to put in place corporate governance since it is critical to business growth.

He has also tasked business owners determining to position their businesses for growth to look at the architecture of their businesses and do away with their egos and position themselves for maximum growth.

“Corporate governance is critical to business growth”, he stated, adding that people must ensure versatility in their businesses in the midst of competition.

He stressed the need for small businesses to be creative as ideas may not be opportunities.

For an idea to qualify as a business opportunity, he said it must be unique, durable and its relevance must appeal to people in the long term.

Addressing the third business executives and achievers meeting in Tema, Mr Tackie was worried that entrepreneurs were no longer eager to innovate.

The programme, put together by the Enterprise and Information Bureau (LOBI), was on the theme, “Positioning your business for acceleration”.

Mr Tackie noted that since innovation was key to entrepreneurship, there was the need for businesses to set up proper structures, build credibility and ensure accountability at all times.

He observed that a lot of companies did not have in place business models and were, therefore, unable to generate products for the market.

“Everything being sold is from China, hence there is no competition”, Mr Tackie noted.

He lamented that while many organisations in the country today appeared to be doing well on the outside, going within, one may realise that they were doing very badly.

Mr Tackie expressed worry over the lack of entrepreneurial mindset in the public sector.

According to him, people who created the businesses were the same people who generated the overall income for the state.

He said the informal sector was unable to pay tax to the government, due to its inability to tax such groupings.

He, therefore, tasked labour to initiate activities that would orient people to believe that they were working for themselves so as to ensure the betterment of the country as a whole.

The CEO of LOBI, Mr Yaw Afful, for his part, also called on small and medium enterprises (SMEs) to network and have in place partnerships which were key to growth.