MSMEs trained to improve their business management practices

Ayisha is one of the close to 200 participants learning how to put in place the best business management practices and structures to be more efficient and able to attract low-cost capital to grow their businesses. The corporate governance training, being carried out by the United Nations Development Programme (UNDP), aims to address gaps identified by UNDP in an assessment that shows poor corporate governance practices among youth and women-led MSMEs in Ghana.

“I get stranded with things I have to do in my business just because I don’t have a good structure. I hardly keep records of what I do, I know it is wrong, but I just don’t know how to do it”, noted Edith Dakogri, Director of Nest and Treasures, jewelry producers in Tamale.

At the training, the participants were taken through hands-on practical modules and case studies on how to keep proper records, plan, and manage risks to be able to withstand shocks. They were also assisted to plan for their succession to ensure business continuity, develop strategic and business plans, and were taken through business registration processes. This is to enable them to be recognized and be able to access funding opportunities.

“The training is part of our integrated MSMEs support programme. What we call corporate governance is basically about the management of enterprises to satisfy the expectations of everyone including government, customers, investors, and supplies. The enhanced capacity we hope will position the businesses to be investment ready and creditworthy”, noted Jennifer Asuako, Programme Analyst at UNDP Ghana at the training.

The role of Micro, Small, and Medium Enterprises (MSMEs) in economic development cannot be underestimated. In Ghana, MSMEs contribute about 85% of manufacturing employment and account for about 92% of businesses. Following a study by the Ghana Statistical Service, UNDP and the World Bank on the impact of COVID-19 on businesses in Ghana, which revealed that MSMEs are struggling to recover, UNDP has rolled out an integrated MSMEs support programme.

The programme aims at strengthening MSMEs’ capacity for good corporate governance and creating awareness among MSMEs to prevent radicalization. It is also providing business development support services including access to funding as well as energy and resource efficiency support. This is to contribute to the government’s recovery efforts to improve the sustainability of MSMEs.

“I benefited from the other UNDP MSMEs programmes including the one on trading under the African Continental Free Trade Area (AfCFTA). Currently, am in the process of obtaining the rules of origin license to start exporting my products abroad under the AfCFTA”, noted Diana Mame Akwaboaah Bosompem, Chief Executive Officer of 360 Naturals, producers of cosmetic products at the corporate governance training in Kumasi.

Six districts are benefiting from the interventions, and these include Kumasi Metropolitan Assembly, Ketu South Municipal Assembly, Sefwi Wiawso Municipal Assembly, Jomoro Municipal Assembly, Sagnarigu District Assembly, and Kassena–Nankana West District Assembly.