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28.04.2016 Business & Finance

The youth should see challenges as motivation - NDPC

By GNA
The youth should see challenges as motivation - NDPC
28.04.2016 LISTEN

By Belinda Ayamgha, GNA
Accra, April 27, GNA - Dr Kwesi Botchwey, Chairman of the National Development Planning Commission(NDPC) has challenged young people in the small and medium enterprises sector to see their challenges as prime motivation for creativity and innovation.

He noted that although government is taking steps to address the challenges in the sector, including access to financing, there would still be challenges and instead of grumbling, young people should use the setbacks as motivation to achieve their goals.

He was speaking at the opening of a two-day SME Financing Fair, spearheaded by the Minister of State in charge of Private Sector Development and Public Private Partnership on the theme: "SME Financing in Ghana: Enhancing Access and Reducing Cost".

Dr Botchwey, who represented the President John Mahama at the event, said the Fair was a testimony to government's abiding commitment to promote and developing the SME sector in Ghana.

He noted that dealing with the issue of SME financing is not just limited to enhancing access to and reducing costs of financing for SMES but also improving the quality of entrepreneurship, their products and services as well as improving management.

He urged SMEs and stakeholders in the sector to look beyond bank financing and explore other sources such as equity financing where investors could own shares in the business.

Dr Botchwey also called for the strengthening of partnerships between governed and stakeholders in the SME sector to make them more efficient and to unleash their potential for national development.

Dr Ekwow Spio Garbrah, Minister of Trade and Industry, reiterated the important role SMEs play in the development of emerging economies.

He noted that about 90 per cent of businesses registered by the Registrar General's Department fell in the SME category.

He outlined some initiatives that government had instituted in the quest to create a better business environment for SMEs to thrive, including the establishment of Business Advisory Centre in various districts nationwide, the Made in Ghana Campaign and the Rural Enterprises programmes.

Dr Spio Garbrah stated that in order to grow the sector, it is also important to ensure that large companies and multinationals who operate in Ghana incorporate SMEs in their value chain, in areas like procurement and other services that could be outsourced to SMEs.

Mr James Asare Adjei, President of the Association of Ghana Industries (AGI) said the association is working on establishing the AGI Fund, as well as an Industrial Development Bank, which is expected to help address some of the challenges that businesses, especially SMEs face with regards to financing.

These challenges, he noted, is not only in accessing credit from commercial banks due to the perceived risks involved but also the short term nature of such credit, which does not favour industry.

He urged government to endeavour to sustain and improve on macro-economic stability that has been achieved in the last couple of months.

GNA

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