DFID Provides Financing Opportunity Platform For MSE' s

As part of the Enhancing Growth in New Enterprises (ENGINE) programme which is funded by the UK Government through the Department for International Development (DFID) and being implemented by TechnoServe has provided a platform financing opportunities to beneficiary Micro Small Enterprises (MSEs) in the country.

The platform was to help strengthen linkages and closure of deals from the previous investors and financing dialogue session, ENGINE organised the second edition of the Dialogue Session which saw 176 entrepreneurs creating new linkages, and strengthening existing ones to facilitate deal flows between investors/financiers and the 176 ENGINE entrepreneurs who were carefully selected through the ENGINE Business Plan Competition and Entrepreneurship Development Programme.

The platform provided an opportunity to network and also initiates the development of a new portfolio in the MSE sector, whilst creating a network of investors and financiers who can provide credit facilities to support MSEs under the programme.

In this regard, the entrepreneurs were made aware of the processes required in obtaining MSE loans, private equity & impact funds, basic insurance products for MSEs as well as the creation of investor network pool for future deal considerations. All these were made possible through one-on-one interactions between the two parties.

The session attracted 29 participating institutions and investors from the Banking sector, Savings & Loans Companies, Impact Funds, Private Equity firms, Venture Capital Firms, Micro-Finance Institutions and Other Specialised Funding Agencies.

Many of the financial institutions commended DFID for supporting an initiative that provides cash and “in-kind” awards in the form of Seed Capital and Aftercare Support Services to MSEs.

The intervention, according to them will allay the fears of providing credit facilities to MSEs who are mostly start-ups and therefore require some basic collateral which has been catered for through the provision of seed capital under the programme. The programme seeks to replicate similar sessions in Tamale and Kumasi to facilitate access to finance for MSEs.

Some financial institutions that Economy Times spoke to at the session related that, there are several opportunities for MSEs, but information gap has made it impossible for them to take advantage to build their businesses.

Joseph orfson-offei of Quality insurance company disputed the complains of MSEs and some Ghanaians that, insurance companies are not truthful and do not pay claims on time and said, claims payment is base on evidence and satisfaction of the evidence as being genuine cause of accident or loss before claims are paid which is the normal practice in the industry worldwide.

He counted that, there are several products for MSEs for eventualities loss or accident that could restore them back to their normal operating status to ensure continuity of business and sound mind against future uncertainties.

He therefore encouraged the owners of MSEs to purchase insurance products.

Jeoffrey odame yeboah, head personal banking at UMB and Rebecca nyarku, ag head of marketing for global access also counted a number of products that their respective banks have for MSEs development and growth.

They admonished the managers of MSEs to adhere to proper book keeping and always seek accounting advisory services when they lacked it to be able to meet the basic requirement of banks wanting to do business with them.

However, some owners of MSEs re-echoed the challenge of high interest rate, cost of doing business, unstable exchange rate and high inflation as major inhibiting factors for their business growth and survival.

The multiyear enterprise development project is to support Micro and Small Enterprises to overcome barriers to growth and improve competitiveness.

The Programme seek to equip MSEs with the necessary skills and resources to improve their business plans and internal operations, while creating a thriving community of entrepreneurs through increased access to business development services and finance.

Since the lunch of ENGINE in April 2014, 176 MSEs have received awards in various forms with additional 100 businesses expected to receive grants and technical assistance from the programme by the end of the year. This will bring the total number of businesses to 276.

With the 176 entrepreneurs currently benefiting from the cash and “in-kind” awards, 74 of these entrepreneurs have been linked and received various forms of support from financial institutions with 42 completing and submitting applications for financial support.

The Programme has so far committed GH¢3.1 million to 176 businesses. Additionally, the programme has initiated the processes of establishing an Alumni association for the past finalists with the aim to network and also promote business to business to enhance access to market benefits.