Many businesses start small as ideas and dreams which bud and grow into big companies. The journey of small businesses is most of the time rough and cumbersome as many toddle and never attain their desired goals. In Ghana, Micro, Small, and Medium Enterprises (MSMEs) account for roughly 70 per cent of the Gross Domestic Product (GDP), employing more than 80 per cent of the labour force. Even though they are the backbone of Ghana's economy, MSMEs face numerous challenges that impede their growth and potential. According to a World Bank Enterprise Survey, approximately 40 per cent of MSMEs in Sub-Saharan Africa cited access to finance as a significant constraint, as opposed to 25 per cent of large firms. Forty-one per cent of SMEs in Least Developed Countries (LDCs) identified financing, high interest rates, and collateral requirements as major barriers. The lack of access to markets and technology exacerbates their plight as other respondents reported difficulty in finding customers and adopting digital solutions. 'The continent's 600,000 formal MSMEs and 40 million+ micro-businesses account for approximately 90 per cent of all businesses, provide about 80 per cent of employment, and contribute 40 per cent to Africa's GDP, highlighting their central role in Africa's economy,' the survey said. For example, the Bank of Ghana's (BoG) most recent Collateral Registry report for the fourth quarter of 2023 revealed a significant decline in the total value of secured loans granted and registered by banks and specialised deposit-taking institutions. Compared to the same period in 2022, there was a noticeable 54.9 per cent decline, with the total value standing at GHS5.9 billion, down from GHS13.2 billion in quarter four (Q4) of 2022. '…The biggest challenge we face is accessing finance,' said Ms Genevive Amevor, owner of Taste Bites, an eatery in Accra. Corroborating the BoG's recent Collateral Registry report, Ms Amevor told the Ghana News Agency (GNA) in an interview in Accra that, 'We have been turned down by multiple banks due to lack of collateral. How are we supposed to grow if we can't get the funds we need?' Experts have warned that the struggles of MSMEs could have far-reaching economic consequences. 'MSMEs are critical for job creation and innovation. They contribute significantly to the GDP of both developed and developing countries in different forms. ' Dr Martin Thompson Ntem, a Digital Media Specialist at the Institute of Digital Marketing and Communication Ghana, said. 'If they can't access the resources they need, it will stifle economic growth and increase unemployment. MSMEs are major employers for the youth and first-time job seekers while they also create jobs within the local communities, which contribute to regional development with flexible opportunities that could adapt to market change,' he said. Dr Ntem delivered the remarks during a four-day advocacy training on Health, Climate Change, Gender, and MSMEs for GNA Journalists and Editors from Greater Accra, Tema, Volta, and Oti Regions Th e African Development Bank (AFDB) funded the Post COVID-19 Skills Development and Productivity Enhancement Project (PSDPEP) training as part of a series of trainings to equip participants with the knowledge and skills needed to create impactful advocacy messages through audiovisual storytelling. Dr Ntem observed that innovation, risk-taking, and adaptability were key traits and characteristics of youth entrepreneurs aged 15 to 35 who engaged in entrepreneurial activities such as starting new businesses, creating startups, and innovating. To address these challenges, policymakers and industry leaders have advocated for improved access to finance through specialised loan programmes and lower interest rates, improved market access through trade agreements and business matchmaking initiatives, and increased support for technology adoption through training programmes and digital infrastructure development. 'The Government must take concrete steps to support MSMEs,' said Ms Georgina Offebia, a fashion designer. ' We need policies that promote entrepreneurship, innovation, and job creation,' she told the GNA in an interview. In response, the government launched the Obantanpa Project to provide emergency relief funds for MSMEs and entrepreneurs in Ghana for comprehensive and financially sustainable assistance to mitigate the impact of COVID-19; there was also the YouStart, a three-year vehicle that supported youth in building commercially viable businesses to create million jobs in the economy. The National Entrepreneurship and Innovation Programme (NEIP) was also implemented by the Government to provide integrated national support for startups and small businesses. While these efforts were commendable, MSMEs and industry leaders agree that more is required. 'We appreciate the government's efforts, but we require ongoing support.' Prince Adufah, CEO of PrinceYOGO, an ice cream company, stated. 'We are not just asking for handouts; we are asking for a level playing field,' he told the GNA. Meanwhile, as the economy progresses, the fate of MSMEs remains uncertain. Will policymakers and industry leaders respond to their request for assistance, or will growth barriers continue to stifle the potential of these critical economic drivers? Source: Ghana News Agency