MSMEs collapse due to lack of mentorship and succession plan – Women Enterprises Consultant

Women Enterprises Consultant and Entrepreneur, Maria Johana Yuorpor, has observed that micro, small, and medium-sized enterprises often collapse due to lack of expertise, continuity, and succession plan in the absence of their founders.

She said most micro, small, and medium-sized enterprise owners do not train and mentor any other person to continue the business in their absence which often leads the business to collapse.

Madam Yuorpor made this observation in an interview with Info Radio in Wa on the occasion of this year's World Micro, Small, and Medium Enterprises (MSMEs) Day commemoration.

Commenting on the local theme for the day's commemoration in Ghana, "Building Resilient and Sustainable MSMEs to Create One Million Jobs," she said MSMEs could provide numerous job opportunities and employment avenues for people if they are well strengthened and maintained.

She indicated that the sustainability and resilience of MSMEs was dependent on the ability of their owners to manage their finances prudently and more importantly, train other people to take their instead of running the businesses in their absence.

The Women Enterprises Consultant, also the CEO of Mara Foods and Upper West Regional Coordinator of the Northern Development Authority (NDA), however, lamented that most MSMEs do not grow into large-scale businesses, or even collapse, due to poor management and lack of continuity.

"Somebody would start a business and no relation, children or anyone, is involved. He alone knows the inside and outside of the business.

"God forbid. In the case of their death, that ends the business because nobody knows anything about it," she lamented.

She, therefore, encouraged owners of MSMEs to endeavour to train and mentor other people especially their children to be able to continue the business enterprises after their exit through incapacitation or death.

"To build sustainable and resilient MSMEs, I think MSME owners should mentor other people, their children to take after them when they are no more," she concluded.

She further urged the MSMEs to take advantage of the Ghana Enterprises Agency (GEA) and the Business Resource Centres (BRCs) in the country to receive training and support to boost their operations.

Meanwhile, as part of the day’s commemoration, the Mara Foods CEO, under her Beautiful Smiles initiative, also interacted with various women’s groups and small business holders in Wa where she congratulated them on the work they have been doing and urged them to adopt best practices to sustain their businesses.

Mr Rafiq Yussif Tendaana, agripreneur and CEO of Farm Ghana, also observed that young people especially students were not interested and supportive enough of the MSMEs that their parents run.

He urged that students should use their literate abilities to support the businesses of their mothers and fathers in areas of marketing and proposal development.

Mr. Tendaana also indicated MSMEs were making judicious use of the business advisory institutions in the country to help develop their enterprises.

He lamented that unhealthy competition, rivalry, among MSMEs was counterproductive as he said most people do not understand the difference between "competition" and "rivalry".

"Competitors can share ideas to improve their brands, but once you hear 'rivalry', then it is something else," he said.