SME consultant and Director of the National Entrepreneurship and Innovation Programme, Franklin Owusu-Karikari, has made his own analysis and found a possible answer to why some people keep failing at entrepreneurship.
He was hosted by Comfort Ocran on the Springboard Hangout show on eTV Ghana where he reported that most people who go into entrepreneurship complain that they do not have the needed funds to support the business, however, the actual problem is their lack of know-how on proper management of their funds and their books.
“The reason why most young people and most early-stage Ghanaian businesses are not growing is the fact that we don’t manage our books and our financing very well so you’ll bring an investor and he’ll ask the person ‘can you show me your records since you’ve been working for the past three years’ and they have nothing”, he said.
Franklin added, “People sit in the marketplace and even young people who run businesses, will receive momo for payment of goods and it’s just on their phone. They don’t take records of where the money came from but they keep spending it and by the time you’ll realize, you’re eating your capital away”.
According to him, the secret to avoiding this is basically for people to understand that proper management of funds is also a source of capital. Therefore, by managing their funds well and taking accounts, they will know their limit for spending and in turn, have enough to invest and re-invest in the business.
By: Maureen Dedei Quaye