Lack of capacity development, as well as the absence of proper business advisory services, have been identified as the major challenges confronting the growth and development of Small and Medium Enterprises (SMEs) in the country.
Though the sector has been touted as the catalyst to propel the country’s economic growth considering their source of income, employment and business convenience, many SMEs have failed to realize their potentials because of their inability to adopt strategic plans that can enhance their businesses.
The Managing Director of Union Savings and Loans, Mr. Philip Mensah, who expressed these sentiments during an official inauguration of an SME Business Clinic for small and medium businesses in the Ashanti Region, said the situation had led to the collapse and poor performance of many small enterprises in the country.
The SME Clinic is a novelty programme introduced last year by management of the bank to support the growth of businesses in the country by offering entrepreneurs free experts consultancy on how to effectively manage their businesses.
According to him, available data from the Registrar General indicates that 90% of companies registered are micro, small and medium enterprises (MSME’s) but most of them struggle to sustain their activities and eventually fold up due to lack of proper planning.
Mr. Mensah therefore emphasized that it was for this reason that Union Savings and Loans introduced the SME Clinic to provide business solutions and advisory services to entrepreneurs to enable them grow their businesses.
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He said the package formed part of bank’s philosophy of successfully combining commercial objectives with a strong development agenda by focusing on segments of the market that lacked the needed attention and expertise from the “regular” financial services sector.
The Manager in charge of the Business Division, Mr. Dominic Mensah, under the programme, said SMEs will be provided with regular briefings on the financial market and economic trends in the country, stressing that other services such as Safe Book-keeping, Funds Management, Business Planning and Organizational Structures shall also be provided under the scheme.
Source: Ghanaian Chronicle