Business News of 2014-08-12

Addressing Ghana's Startup Funding Challenges

Funding is a major challenge for African Startups, more specifically Ghanaian Startups. It stems from the lack of financial products for Startups,lack of an understanding of Business Modules by Startups to be able to translate this into growth and Revenue or a viable, real financial plan/forecast/business for investment; Lack of understanding of financial products/insitutions/requirements by the Startup and how it applies to a Startup.
The lack of an understanding of commitment and risk of investment in a Startup and the general failure of systems (Banks, Trade Institutions, Private Sector et al) to support the Ecosystem. An uncoordinated ecosystem among others. There are many other factors: The Capacity and Skill of the Startup Founders to execute; an existence of structure and systems that merit funding vis a vis an implementation plan, and an understanding of the Cost components and Strategy in Acquiring clients and operations with a good articulation of a Business Plan, Product and Pitch. Today, Many Startups are redefining strategies and capacity and proposing new fundable modules.
Startup Summit 2014 a "free event" to connect Startups to Financiers and enable Financial Institutions, Investment firms, Corporate's better understand the needs of Startups and develop financial products towards supporting #Startups is just ahead. It will feature an Exhibition | Pitch | Demo | Workshop. Each Institution will commit between GHC 50,000 and GHC 1 million to fund Startups within the next 6 months. The idea is to re-engineer Corporate Social Responsibility to Corporate Social Investments for scalable impact.
But Before then, What must be done: 1. Connect Startups to Support Systems- Advisory, Referrals, et al through an Identify, Train, Connect, Fund, Mentor module. (Capacity, Building Business Modules, Book Keeping etc of Startup Founders) 2. Prove viability and sustainability of modules of Startups, create awareness and demonstrate real growth potential of Startups for Commitments 3. A Policy approach/private sector support in building the ecosystem. 4. Syndication and increase in availability of Funds by existing Financiers. 5. Clearly identify/create a lean Apex Body that coordinates, monitors and administers all state funds established towards supporting SME's, Businesses etc 6. Keep pushing for Greater Financial inclusion and Access for Startups (Development of tailor made financial products et al)
Writer: John Armah, an Award-winning Entrepreneur and Consultant with a passion for Startups in Africa. Ranked as the 27th Most Influential Ghanaian by ETV Ghana (2012), Winner 2012 Ideas Award by Legacy and Legacy, Pioneer and Chairman of the Africa Youth Economic Forum,Model African Union Commission. Member-World Economic Forum-Global Shapers Accra Hub, Africa 2.0, Member of the Advisory Board of the Next Wave Africa Women Empowerment Program,Youngest Contributor to Ghana's Budget, Former Radio Talk Show Host and a member of the African Community of Practice for Managing Development Results and the Youth4Results network in Africa. Email: johnarmah59@yahoo.com
Source: GHP
« Previous | Next »
View Comments
Sponsor Links
News Categories
Site Menu