Ghanaian startups and small enterprises face mounting obstacles in scaling operations, with entrepreneurs citing limited access to affordable capital, labyrinthine regulations, and gaps in technology adoption as critical barriers to growth, a High Street Journal investigation reveals.
The challenges persist despite the sector’s role as a backbone of the economy, employing over 80% of Ghana’s workforce.
Helena Odoi, a fruit and vegetable trader, typifies the struggle. “Raising capital is a nightmare. Banks demand collateral we don’t have, and investors ignore small traders for established firms,” she said. Her sentiment is echoed by beads manufacturer Akua Andoh, who noted that profit margins for startups remain “dishearteningly low,” deterring potential backers.
Policy clarity compounds the crisis. Retail entrepreneur Linda Mensah described navigating tax and licensing rules as a “minefield,” with fines often hitting before compliance understanding dawns. “Regulations exist, but guidance doesn’t reach us,” she added. Analysts attribute part of this disconnect to Ghana’s fragmented business support ecosystem, where micro-enterprises—particularly women-led ventures dominating the informal sector—lack structured onboarding into formal systems.
Technology access further widens the gap. While digital tools could streamline sales and payments, rice retailer Doreen Ayitey highlighted cost and skill barriers: “Online stores and digital payments need investments we can’t afford.” With only 35% of Ghanaian SMEs leveraging digital platforms, per GSMA data, experts warn the tech divide risks sidelining small players in an increasingly digital economy.
Angela Mensah-Poku, MTN Ghana’s Chief Enterprise Business Officer, urged targeted interventions. “Women drive informal trade but often lack training. Government and private players must collaborate to demystify policies and boost digital literacy,” she said, applauding grassroots resilience amid inflation and external shocks.
While some entrepreneurs pivot to grants or mentorship networks, systemic fixes remain elusive. The National Board for Small Scale Industries (NBSSI) reports that 70% of Ghanaian startups fold within five years, often due to capital droughts. Critics argue existing initiatives like the Ghana Enterprise Agency’s loan programs reach too few, while high-interest microfinance—sometimes exceeding 30% annually—traps borrowers in debt cycles.
The government’s “Ghana Made” campaign, aimed at curbing import reliance, has also sputtered. Odoi lamented that consumer preference for foreign goods undercuts local sales, urging “tax incentives for buyers of Ghanaian products” to stimulate demand.
As Accra pushes digitization under its “Ghana CARES” post-pandemic recovery plan, stakeholders stress that without parallel investments in SME financing and policy simplification, tech upgrades alone won’t bridge the inequality chasm. For now, entrepreneurs like Ayitey cling to ingenuity: “We survive by pooling resources—but we shouldn’t have to fight this hard to grow.”
