SMEs urged to consider mergers

Eric Opoku, Brong Ahafo Regional Minister, has as a matter of concern urged small and medium enterprises (SMEs) to consider mergers or entering into partnerships in order to enhance their operational growth.

He said mergers and partnerships will not only make businesses bigger, but also boost resources and increase capital base to revive organisational image, translating into a more viable and competitive entities, adding: “Your bigger outlook will give the advantage of accessing bigger credit facilities, lower cost of production and access to larger markets, among other advantages”.

The Regional Minister made the call at a business forum held in Sunyani for the business community and relevant stakeholders in the Brong Ahafo Region. The forum, jointly organised by the Regional Coordinating Council (RCC) and TKC Consult, was under the theme “Creating the Enabling Environment for Brong Ahafo Business”.

It was designed for business actors to share innovative ideas, find practical solutions to common challenges, and share success stories as a means to help create an improved business environment in the region.

Mr. Opoku said the role of the private sector in the country’s socio-economic advancement cannot be underestimated, hence government’s promulgation of the Public-Private –Partnership (PPP) policy to further demonstrate its commitment to promote and stimulate investments to enhance sustainable development.

The existence of thriving businesses in the region and the country at large holds the key to the socio-economic transformation and development of the people, because enterprises (small or big) create jobs, facilitate income generation and reduce poverty, he added.

He repeatedly assured the business community of government’s commitment to support the private sector achieve accelerated growth, and therefore entreated them to take advantage of existing funding opportunities and policies -- such as the Export Trade, Agricultural and Industrial Fund (EDIAF), Youth Enterprises Support (YES) scheme and MASLOC of expand their businesses.

He however expressed concern about the high rate of reimbursement failure of loan facilities by some beneficiaries, and appealed to defaulters to redeem their obligations so as to whet the appetite of banks and other lending institutions to support others.

The common business operational challenges that came up at the forum included high cost of production, erratic power supply, lack of access to reasonable credit facilities, and poor road networks.