Dr. Sam Worlanyo Mensah, a seasoned Economics lecturer at Wisconsin University College of Ghana, has emphasized that the challenges of entrepreneurship in Ghana are primarily rooted in the rising costs associated with running a business.
Dr. Mensah stated in an interview with Univers Business that the registration process of businesses in Ghana is a demotivator for young entrepreneurs, citing the minimum capital for establishing a business, the cost of utilities required for business operations, and tax charges as some factors contributing to the increased costs involved in running a business.
“Everything requires some level of minimum capital for [a business owner].” There are some minimum capital requirements that you must meet before seeking additional capital to run your business.”
“So day-to-day operations are quite expensive, and when you consider the cost of utility, water, electricity, and the tax system, the tax regime is not favorable for businesses.”
Dr. Mensah proposed tax cuts to make business operations more cost-effective, and he advocated for business continuity.
“And I wish we could review [taxes] downwards because if we create an enabling environment, people will be able to produce and the government will have more to tax rather than imposing higher taxes, which take all of their profit away, causing redundancy at the workplace and increasing the level of unemployment.”
Furthermore, he encouraged young people to pursue entrepreneurship through partnerships and corporations.
“Entrepreneurship is the way forward, and I would suggest that instead of making it an individual decision, we can sometimes collaborate.” As a result, it could be a joint venture. We have columns like that during the registration process at the Registrar General so we can spell out shares very well.”
Dr. Mensah went on to say that collaboration among diverse expertise would lead to greater heights, emphasizing the importance of youth collaboration in business establishment.
“Sometimes, people with money do not have technical know-how, and people with technical know-how do not have financial muscle, so when the two come together, I believe they will be able to achieve greater heights [in local businesses].”