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Legal and regulatory requirements are too cumbersome for SME's

Remove legal barriers to SMEs registration – Economist urges govt

Dr Godwin Kwame Adjei, a member of Institute of Directors, Ghana has called on the government to remove all legal and regulatory limitations that impede the establishment and registration of Small and Medium Scale Enterprises (SMEs).

He said such legal and regulatory requirements were too cumbersome and serve as a disincentive to individuals and groups who want to venture into the sector.

He said such restrictions when removed would open the sector, motivate individuals to establish more businesses and to create employment opportunities.

Dr Adjei was speaking at an e-seminar organised by the Institute of Directors-Ghana (IoD-Gh) in Accra on the theme: “Policy Consistency – The Bedrock of Good Corporate Governance.”

The seminar was aimed at shaping policies in corporate governance to ensure sustainability and to promote business growth.

Dr Adjei called for the formulation of a national policy to identify and provide the assistance required to SMEs across the country to thrive.

“Government, public sector and SMEs should work together to put in place a favourable regulatory framework to enable growth, and also develop policies to address the skills gap,” he said.

Dr Adjei urged SMEs to make themselves identifiable, form associations and clusters to enable them to influence government policies on interest rates on loans, among others and to attract loans from banks, both international and local.

“You can only have a voice if you are powerful. SMEs must therefore be organised and that will compel government and banks to listen to them.
“They will also be able to tap into larger sources of financing,” he added.

He said Ghana over the years had been unable to wholly achieve its national development because of the failure of successive leaders to implement such policy plans.

“Singapore’s development, for instance, was driven by the state. Singapore went through stated directed capitalism and so its development was state-driven and not by political parties.

“Unfortunately, ours is being driven by political parties’ manifestoes. The state must lead the development process, not political parties. It must formulate a national policy that all parties’ manifestoes must be linked to,” Dr Adjei stated.

Source: GNA

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