Minister: Businesses have failed because of poor business strategies

Accra, Sept. 26, GNA - Mr. Kwaku Agyeman-Manu, a Deputy Minister of Trade Industry, Private Sector Development and President's Special Initiative, on Friday said many businesses in Ghana had failed not because of poor business environment but because of the inability of entrepreneurs to craft effective strategies to exploit business concepts.

He said problems such as access to finance, technology, innovation, creativity and networking, which were geared towards improving the competitiveness of the Small and Middle Enterprises (SMEs) needed to be addressed to ensure successful businesses. Speaking at the opening of the first Pan African Competitiveness Forum (PACF) ECOWAS sub-regional meeting in Accra, the Minister explained that despite the laudable interventions put in place by government to create a firm foundation for sound economic development with better standards of living, it was faced with challenges that should be addressed to integrate countries successfully into transformed and more open economic system. The meeting which is being attended by delegates from Ghana and Nigeria would strategise to enhance the competitiveness of SMEs, share experiences and outline a programme of action. It is estimated that over 90 per cent of economic activity in most countries is carried out by SMEs, which is a manifestation of the pivotal role they play in creating dynamic, market oriented economic growth, employing workforce in developing countries and poverty reduction.

Mr Agyeman-Manu noted that the world had become a global village where distance was no longer a barrier to international trade but trading and service now depended on the competitiveness of the various nations that whished to trade.

"As a continent, we stand to lose if we attempt to swim against the tide. It is therefore in our interest to accept the global competitive economic phenomenon and take advantage of opportunities offered." He called for the need for more networking among stakeholders in the sub-region for maximum synergies for the accelerated socio-economic development of the various countries involved. Dr. George Essegbey, Director of the Science and Technology Policy Research Institute of the Council for Scientific and Industrial Research (CSIR), said the initiative, which would rope in other countries in the sub-region would promote competitiveness by rebuilding some of the SMEs businesses, promote their growth and improve the livelihoods of the people engaged in the sector.