Small and medium-sized enterprises (SMEs) should consider strategic partnerships and alternative financing arrangements to overcome capital constraints and expand their operations, Beatrice Jones-Mensah Tayui, Chief Executive Officer of Cybele Energy Ltd, has said.
Speaking at the U.S. Embassy in Ghana’s American Spaces programme, Freedom250: Think Bigger, Go Further – A Leadership Journey Across Continents, she urged entrepreneurs to look beyond full ownership and consider investors who can provide the capital and expertise needed to grow their businesses.
“Sometimes we feel like we need to own a hundred percent of everything. No, we don’t,” she said. “I’d rather own forty percent of something than a hundred percent of nothing.”
Access to finance remains a major hurdle for SMEs seeking to expand, meet rising customer demand and enter new markets. Businesses with limited collateral, short operating histories or inconsistent cash flows often struggle to meet commercial banks’ lending requirements, leaving them reliant on alternative sources of capital.
The challenge persists despite improvements in Ghana’s economic conditions. The Bank of Ghana said lenders remained cautious about extending credit to SMEs because of concerns over repayment capacity, weak financial records, limited collateral, and the perceived risk of default.
Against these financing constraints, the energy executive urged business owners to plan carefully for expansion and seek investors who can provide the capital needed to pursue new opportunities. She noted that businesses must often secure funding well before their investments begin generating returns.
Investors may be reluctant to finance businesses without a proven track record, making credible financial projections, evidence of market demand, and a clear growth strategy essential when seeking capital.
Transparency in dealings with investors, regulators and business partners is equally important. Entrepreneurs should communicate openly about funding challenges and project developments while ensuring prospective partners share their long-term objectives.
“Be transparent, put everything on the table,” she said, warning that greed and conflicting interests can undermine business relationships.
Strategic partnerships can offer SMEs more than financing. Investors with relevant industry experience, market access and operational expertise can strengthen business capabilities and help companies compete in new markets.
The discussion formed part of the American Spaces leadership programme, which explored entrepreneurship, business development and the decisions involved in building companies capable of competing across borders.
