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UE: Businesses still struggle to access funds for expansion

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Small businesses and startups in the Upper East Region that may want to access funds to expand their businesses and get their same off the ground have a torrid time trying to access funds from financial institutions in the region.

This is because small businesses and startups find it extremely difficult to meet the requirements of the lending institutions. Another challenge is the huge disincentivising interest rates that are imposed on the loans and credit facilities.

As such, many businesses continue to suffer from the lack of growth in the region.

As such, lending institutions are being encouraged to fine-tune their credit facilities so that small businesses and startups can access these facilities and grow their businesses.

These suggestions were contained in a policy brief document compiled after a stakeholders’ meeting held at the Dansyn Innovation Social Organisation (Dansyn ISO) in Bolgatanga; the Upper East Regional Capital.

The meeting focused on “the Role of E-Commerce in Transforming Local Economy for Job Creation and Economic Development.”

“Startups in the region do not have all documents to enable them to go for a loan or funding to support them. These startups sometimes dwell on peoples’ properties to ensure that they get the funding; making them prey to the banks. The credentials at the start of a business is hard to get because of financial constraints.”

The policy document, made public by the Programmes Manager at Dansyn Innovations Social Organisation (ISO), Stephen Maldima Tobigah also identified some flaws in businesses that make it difficult for them to access funds.

“Most businesses and startups do not have access to strong policies that will see to a consistent provision of funding they seek to continue operating. Banks in the Upper East Region do not see all businesses to have strong foundations so they in-turn, play hard to get and thus making the businesses suffer the restrictions and sanctions placed on policies of loans.”

“A lot of the citizens of the region lack the requisite knowledge of financial systems. These people tend to find it extremely difficult to ask for financial funding because they do not know what it takes to make them succeed in getting the funding their seeking. As a result, these people are taken advantage of most of the time,” other portions of the document read.

Background 

As part of the Pathways to Sustainable Employment, Ghana Tech Lab in partnership with Dansyn Innovation Social Organization organized a stakeholder gathering to collate ideas on the potential and the role of web development technology in the local digital economy and also how it propels youth employment in our community. This engagement was pivotal to delivering a policy document that would feed into the development of a well-structured and informed curriculum and ultimately, a roadmap for achieving a local digital economy through web application technology in Ghana.

The meeting brought key stakeholders together to outline the skills gap, challenges, opportunities, strategies and policies for transforming the local economy to achieve sustainable development through digital skills and entrepreneurship within the Upper East Region and beyond.

Dansyn Innovation Social Organization (Dansyn ISO) is a technological hub which is aimed at supporting youth and women entrepreneurship with digital skills in the Upper East Region and beyond. The aim of Dansyn ISO is to give attention to the youth and women businesses that cannot procure training and business development support services but need support to grow.

Source: A1radioonline.com|101.1MHz|Ghana

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