Startup businesses in Ghana are faced with several challenges, including funding, policy challenges, leveraging resources, and technology. These often hinder their growth as startups.
For many entrepreneurs, securing funding remains a major challenge despite efforts by banks and financial institutions to provide loans. Stringent requirements and high-interest rates make it difficult for small businesses to access credit.
Mrs Helena Odoi, a fruit and vegetable trader, who spoke with The High Street Journal (THSJ), said: “Raising capital is a nightmare in this country. Many of us do not have collateral, and investors often prefer bigger, more established businesses.”
She said investing in local businesses in Ghana is a serious challenge due to many economic factors. She also explained that the government does not create compelling policies and regulations to attract individuals and organizations to buy Made in Ghana goods.
For the likes of Mrs. Odoi, the Ghanaian taste for imported products is a challenge for local small businesses. “This prevents people from buying Ghanaian products,” she added.
Mrs Akua Andoh, a local beads manufacturer, told THSJ that many small businesses suffer in terms of getting the required capital to hold their businesses. She said that the expectations and optimism of gaining profits are very low for startups in Ghana.
Beyond financial struggles, many startups find it difficult to understand and comply with government regulations. Business owners often lack clarity on tax policies, licensing requirements, and industry-specific regulations, which leads to fines or operational delays.
“The policies are there, but many small businesses do not have the guidance or resources to fully understand them,” Mrs Linda Mensah, a retail entrepreneur in textiles, said. “Sometimes, by the time you figure out what is required, you are already facing penalties.”
In an increasingly digital world, the ability to leverage technology is also a game-changer for businesses, but many startups lack the resources or skills to fully take advantage of digital tools.
While e-commerce, digital marketing, and automation have transformed industries, many entrepreneurs struggle with high costs of digital services, poor internet infrastructure, and limited training opportunities.
Miss Doreen Ayitey, a rice retailer said: “We know technology can help us reach more customers, but setting up an online store, managing social media, and using digital payment systems all require investment and expertise that many startups simply do not have.”
Despite these challenges, some entrepreneurs are finding creative ways to survive, forming partnerships, seeking alternative funding sources such as grants, and learning through mentorship programs.
However, Mrs Angela Mensah-Poku, Chief Enterprise Business Officer, MTN Ghana, said women dominated the informal business sector and lack education, therefore government and institutions must visit these small businesses to ensure they have access to business insights and knowledge.
She suggested that the government and private sector collaborate to provide better financial support, simplify policies, and increase digital training opportunities for startups.
She applauded small businesses of resilience in the Ghanaian market, stating that most Ghanaian businesses were struggling and collapsing due to external shocks.
