‘Ownership culture killing small scale enterprises’

Ekow-Afedzie-CEO-Ghana-Stock-ExchangeA bourse expert has identified sole proprietorship as the reason for which many local companies become stagnant and collapse after few years in operation.

“The desire to be sole owners of small businesses is the challenge for our indigenous enterprises,” said Ekow Afedzie, Deputy Managing Director of Ghana Stock Exchange (GSE), adding that “The ownership culture is killing our small and medium scale enterprises (SMEs). Our people believe in quantity and not value.”

According to a GNA report, Mr. Afedzie made the assertion in Ho at a forum organised for members of the Association of Ghana Industries (AGI).

The forum was on the theme, “Raising Capital through the Ghana Alternative Market.”

He said it was better to own 10 per cent of a one-billion-worth enterprise than being the sole owner of an unproductive business.

Mr. Afedzie, therefore, encouraged SMEs to go into partnerships to expand their businesses.

He said partnership was the way to grow businesses now as it helped to raise long-term capital for equipment and expansion.

The Ghana Alternative Market (GAX), he said, was introduced to cater for domestic companies and advised participants at the forum to take advantage of the initiative, which comes with a lower cost.

Madam Joyce Boakye, Head of Listing at the GSE, said the Ghana Alternative Market focused on businesses with the potential to grow, including start-ups and existing enterprises.

She said it offered easier access to long-term capital at relatively lower cost, reduced risk and improved liquidity, among others.

Mr. Philip Kobina Abodoh, the Officer at the Ghana Alternative Market (GAX), encouraged SMEs to contact stock brokers and convert their businesses to public limited liability companies to benefit from GAX.

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