Using GH100 million to support young entrepreneurs, spurious-ILAPI Boss

0

Chief Executive Officer (CEO) and President of policy think tank Institute for Liberty and Policy Innovation (ILAPI), Peter Bismark Kwofie says the use of GHc100 million for capacity building for entrepreneurs by government was a terrible idea.

The think tank development expert said the decision by government to select only a few individuals and give them support do not have a measurable outcome.

He wants government to put an end to the direct entrepreneurship intervention and rather concentrate on its primary role of less taxation and less regulation.

The Minister for Business Development, Mohammed Ibrahim Awal has revealed that his ministry has so far spent about GHC 100 Million as part of its many initiatives to build capacity of entrepreneurs across the country.

The Ministry has for the past two years implemented a number of initiatives including the Presidential Business Support, Green Business development, Capacity building for women and disabled entrepreneurs among others.

Mr. Awal said government is ready to spend more money to build the capacity of young entrepreneurs in order to give them a competitive advantage in the Era of the Africa Continental Free Trade Agreement.

“The monies spent so far, that is the GH¢100 Million, were used for capacity building and for funding. And we will be spending more to make sure our young people compete.”

He further revealed that the Ministry have managed to train, 19,000 young entrepreneurs. Out of that number, 7 thousand were trained in 2018, while 12 thousand have so far been trained in 2019. Out of the trained number for 2018, 1,350 entrepreneurs have received funding from between GHC 10,000 to GH¢100,000.

The Ministry says it plans to increase its support to 3 thousand entrepreneurs for 2019 with funding at a rate of 10 percent.

However, Mr. Kwofie says the idea is not measurable and ineffective.

‘’That government ought to be the catalyst – providing adequate regulatory and capital flows while assessing and monitoring success and failure and not to select the few and give them monies that do not have any measurable outcome. It would best, perhaps, if government would put a stop to the direct entrepreneurship intervention and concentrate on its primary role of less taxation and less regulation.’’

He opined that ‘’Entrepreneurship is absolutely a private sector activity. An individual or a small group of like-minded individuals decide to set up a business and raise some capital. If things go well, sales grow and they can hire more people. What does any of this have to do with the government?’’

In his view, ‘’ when the overall environment for business is bad, many entrepreneurs will fail. Loans cannot be recouped and jobs would be lost. It is not about supporting private men with funds because not all individuals with entrepreneurial ideas have entrepreneurial behaviour but by developing economic entrepreneurial turf and improving the ease of doing business for local businesses.’’

Read Below his full reaction:

To piquant economic growth and job creation through the implementation of entrepreneurship and innovation programmes has been a common central idea in government policies. The Ghana’s Business Development Ministry has disclosed that, more than 200 jobs have been made with subsidies given to youthful business people somewhere in the range of 18 and 35 years with splendid business ideas and 20 youthful business people were helped a year ago with financing, going from GHS25,000.00 to GHS50,000.00. In another vein,10 people were supported with funding between GHS25,000 to GHS60,000. In sum, the ministry stated to have spearheaded about 4,750 jobs created under the ‘Capacity-Building for Young Entrepreneurs and Start-ups’ programme. Is this not a good news? Oh Yes!

In 2014, Ex-President John Dramani Mahama launched a GH10 Million Youth Enterprise Support (YES) Programme. A seed fund aimed at assisting young Ghanaians who have innovative business plans to achieve their full potential of which monies will be paid back with interest. Did YES achieve its intent? Where are the businesses and the individuals?

Entrepreneurship is absolutely a private sector activity. An individual or a small group of like-minded individuals decide to set up a business and raise some capital. If things go well, sales grow and they can hire more people. What does any of this have to do with the government?

When the overall environment for business is bad, many entrepreneurs will fail. Loans cannot be recouped and jobs would be lost. It is not about supporting private men with funds because not all individuals with entrepreneurial ideas have entrepreneurial behaviour but by developing economic entrepreneurial turf and improving the ease of doing business for local businesses. Government is responsible for the overall economic infrastructures in a country, and these include access to education, cheap transport, accessible roads, electricity, affordable housing units and offices and fewer regulation.

A bad business regulatory environment would lead to a stunted economic investment and growth. Government has a key impact on how many new businesses are created and sustained. Entrepreneurial growth can be accelerated by creating more conducive conditions that support business. That government ought to be the catalyst – providing adequate regulatory and capital flows while assessing and monitoring success and failure and not to select the few and give them monies that do not have any measurable outcome. It would best, perhaps, if government would put a stop to the direct entrepreneurship intervention and concentrate on its primary role of less taxation and less regulation.

You might also like

Leave A Reply

Your email address will not be published.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

%d bloggers like this: