Why Banks in Ghana must invest hugely into Startups

A startup, as the name suggests, is an establishment that is just beginning or is at the beginner stage. Such a business can either do well or fail in the market. It is a risk being taken by the entrepreneur but as the saying goes, ‘It is riskier not to take a risk than to.’ It takes risks to succeed in life: Fear is an archenemy of progress.

Same risk the entrepreneur takes is same risk the banks also must take but that is not the case. Banks mostly fear for the loss of their money: They are always interest or profit oriented. What they do not see is that the best investment is in a startup. A startup does not require much financing to take off. Monies for few machinery, office setup, marketing/advertisements and working capital are all that is needed to great the ‘next big thing.’

Once the startup begins to make huge gains, the bank would as well benefit hugely. That is because the bank has an account for the business and all its monies will be saved with them. As the business grows, the bank will have a lot of money at its disposable to invest into other markets for profit. Imagine a bank that had financed early projects by Elon Musk. Such a bank would have been a multi-billion dollar bank by now. If I happen to establish a bank, which I definitely will do, I will recruit very promising youths and invest into them as assets: And sign lifetime contracts with them.

Banks should not wait for people to toil to establish themselves only to be harassed day and night with calls to be their clients/customers. They should make loans available even if the person has only the idea. All they – the banks – have to do is to evaluate the business potential at stake and the returns on their loans or investments. There are some people who have the best business ideas but lack money to even start anything. It is in the interest of the banks – and those with great business ideas but no money – that I formed the group, FUND ME GROW: It is a non-governmental organization that examines the growth potential of business ideas and finds the right financing or financiers for the project. The group makes sure every party involved in the agreement is satisfied at the end of the agreed term.

I believe young Ghanaians have the potential to change the economic situation we have in this country through the various ideas and goals they have. With the right financing, we can establish multi-million dollar entrepreneurs, bloggers, artists, farmers, traders, footballers, contractors, and many more.

We need the banks to believe in us – that their monies are covered, and there will not be a loss. Once a startup succeeds, the investors always reap a lot. Let us invest into workable ideas for the economic growth of our nation.

That is all we need now, as a country, to grow.

By Sylvo Ben-Afa