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19.11.2019 Business & Finance

Gov't To Set Up $20m Fund For Entrepreneurs

By Abdul- Hanan
Minister for Business Development, Dr. Ibrahim Mohammed Awal
NOV 19, 2019 BUSINESS & FINANCE
Minister for Business Development, Dr. Ibrahim Mohammed Awal

Government says it plans to set up a $20million fund to support start-ups and small businesses in the country.

The funds which is to be considered to be established next year will provide funds for small businesses to enable them scale- up and provide job openings for the youth.

The Minister for Business Development, Dr. Ibrahim Mohammed Awal, made this known when he interacted with young entrepreneurs today in his office.

The young entrepreneurs are business owners whose businesses were adjudged the best during the recently held 40 under 40 awards in Accra.

The young entrepreneurs had called on the Minister to discuss ways of collaboration, particularly to find out ways of government support to enable them scale-up and be competitive.

Dr Awal said the funds when established would provide loans to entrepreneurs at affordable interest rate.

He expressed the government’s commitment to create an environment that will help Ghanaian entrepreneurs to transition from necessity driven entrepreneurs to opportunistic and expectational entrepreneurs.

He therefore challenged Ghanaian young entrepreneurs to take advantage of the ecosystem created by government to scale-up their businesses and become globally competitive.

Dr. Awal said the major difficulty of businesses in the county is the issue of high interest rate particularly for start-ups and small businesses and therefore called on banks and other financial institutions to provide targeted funding for SMEs at affordable rates.

The Minister encouraged the young entrepreneurs to provide opportunity for micro-businesses by handholding them and teaching them the discipline of business.

Dr. Awal announced that the Ministry of Business Development will embark on a work-study programme next year under which students in tertiary institutions will be attached to businesses in order for them to be exposed to practical business experience and concepts.

The Minister therefore entreated the young entrepreneurs to support the work- study programme by engaging students in tertiary institutions to work in their company.

He also urged the entrepreneurs to support the Ministry’s programmes such as the Campus Business Pitch, the Student Entrepreneurship Initiative, Presidential Pitch among others in order to build a facilitative entrepreneurship ecosystem in the country.

Small businesses constitute over 80 % of all businesses in Ghana and they also contribute between 60 to 70 % of the country’s Gross Domestic Products.

On his part, the C.E.O of Xodus Communications Limited the organizers of the program Mr. Richy Abey expressed his gratitude to the Ministry for the support for the 40 under 40 young entrepreneurs.

He noted that young entrepreneurs are willing to collaborate with the Ministry in its activities or initiatives to develop entrepreneurs.

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