Lack of well designed models affecting start-ups - Co-founder, Hatchery Business Club

Lack of well designed business models, rather than access to finance is the main impediment to the growth of start-ups in the country, Richard Anim, Co-founder, Hatchery Business Club, a network of entrepreneurs has said.

According to him, the model, which describes the core business and its scope of operation, was necessary to guide the successful implementation of plans and strategies to actualise the idea.

“Most often, people tend to only talk about the lack of finance for start-ups. I believe the most critical factor for business development is a well-shaped and attractive business model. Money is always available in the system, looking to fund businesses but no investor will put money into an idea without a plan,” he stressed.

Speaking to Times Business in an interview at the launch of the club in Accra, Mr Anim lauded government’s initiatives including the National Entrepreneurship and InnovationPlan, to provide accelerators and coaching to small businesses to help address increasing rate of unemployment.

Mr Anim explained that the decision by government to award about 30 per cent of all contracts to smaller businesses was a laudable initiative to curb the recent trend of about 95 per cent of start-ups failing in its first year.

He advocated the implementation of “patient capital” strategy to allow start-ups access funds from financial institutions on terms that would not stifle growth, but permit expansion.

The business club, he said was to provide a coaching space and support for new start-ups less than two years old to be able to explore needed strategies that enable growth.

It would also bring together entrepreneurs and seasoned business people to share ideas and offer support to grow the Ghanaian economy.