Politicisation and lack of funds affecting growth of SMEs - Entrepreneurs

Accra, May 26, GNA - Ghanaian entrepreneurs have expressed concern about the politicisation of companies and difficulty in accessing capital saying it is seriously undermining growth and development of businesses They said it was affecting the expected growth and development of Small and Medium Scale Enterprises (SMEs) in Ghana. Speaking at a day's sensitisation workshop organised by the Private Enterprise Foundation (PEF) in Accra on Wednesday, they said "There are serious machinations, discrimination and intimidation, with the faint hearted only shattered to quit. "The business community look up to government to provide the necessary leadership and platform for economic buoyancy and self-sufficiency," the entrepreneurs added. They, therefore, called on government and other major stakeholders to check and minimise partisan political undertones to business promotion and development.

The workshop formed part of PEF's strategy to deliberate on challenges of business associations and develop measures to address them. The workshop sponsored by Konrad-Adenauer-Stiftung (KAS) was on the theme: "Promoting Business Associations in Ghana". Dr Kwesi Jonah, Head of Political Science Department, University of Ghana, urged the private sector to demand from government efforts to create more conducive and enabling environment for its operations. He was speaking on the topic: "Social Market Economy, Small Medium Enterprises and Business Associations". Dr Jonah called on the private sector to hold government accountable for the taxes paid and efforts for the sector to grow and contribute its quote to growth of the economy. "Government needs to create conducive atmosphere for the private sector to operate through construction of good roads, provision of potable water, education and electricity," he added. He noted that for the private sector to unleash its prosperity, business associations should not remain silent but constantly advise government to adopt a more prudent economic behaviour. Dr Jonah said for SMEs to thrive, there should be an existence of a free market, which should include the liberty to choose a job, to invest where, when and how one chose to form an association. Mr Asare Akuffo, President of PEF Governing Council, described business associations as the glue that cemented the private sector's movement towards market reforms. He said "associations are the key players in the establishment of policies that help in creating an enabling business environment". Mr Akuffo said for the full impact of these efforts to be felt, business associations, professional bodies, and the rest of the informed civil society groups must be strong and more confident to effectively partner the public sector.

"The role the private sector plays cannot be left out to a few enterprises. With organised private sector business associations, the government would be more comfortable working with us and this would also ensure that the voice of micro enterprise are heard in policy formulations," Mr Akuffo noted.

Mr Kwesi Afriyie-Badu, Chief Executive Officer of KAB Governance Consult, urged business association leaders to prioritise funding for the sustenance of the association and set up specific fee structure for membership dues and services. He said leaders needed to develop core product in their area of operations, saying these should be specific to expectations of members. Mr Afriyie-Badu said the State was obliged to enact appropriate laws to guarantee the rights of people to form associations as enshrined in the 1992 Constitution.

He said government needed to regulate and broaden business association's participation in economic policy by requesting government Ministries to solicit comment from business associations before promulgating laws on business activities. Mr Afriyie-Badu urged government to improve the regulatory environment for the establishment of business associations in Ghana. On civil society organisation's support for business associations, Mr Afriyie-Badu explained that the media and religious organisations could help champion the cause of business at the local and national levels. He said these two institutions when partnered effectively would yield better results for business associations in Ghana. Mr Afriyie-Badu expressed the concern that for business associations to develop, they needed to partner development partners that were interested in private sector development and poverty reduction. He was of the view that leadership of business associations had to identify areas in which they could have common interest with development partners to work hard in forging those partnerships. 26 May 10