Financial market

Ghana: overcoming risk aversion to seek funding from the financial markets – Second Deputy Governor

Women entrepreneurs and business leaders need to overcome their risk aversion to seek funding in the financial market, said Second Deputy Governor Elsie AddoAwadzi.

According to her, women entrepreneurs were afraid to borrow to grow their businesses, but they were more careful and responsible borrowers and tend to repay their loans on time.

Ms Awadzi said this during the celebration of the second anniversary of the Women in Business Initiative of the Association of Ghana Industries under the theme “Women-led businesses: exploring financing channels and market access for the growth “.

“When women don’t ask for enough financial support, they don’t get what their businesses need, and this hinders the growth and survival of their businesses,” she said.

She observed that finding and accessing the right financing at the right time was essential for the survival and growth of businesses, and that women entrepreneurs need to fully understand all of their options and accessibility requirements, including good governance, sound financial management and compliance. regulatory and technical standards.

The second deputy governor said that given the essential role of women-owned and operated businesses in our socio-economic development, the country as a whole has much to gain by equipping women in business with good business practices, technology and technical support; and access to finance.

“By supporting women-owned and run businesses, we would position our economy to grow in a sustainable manner,” she said.

The second deputy governor urged banks, specialized depositories and other financial service providers to understand women entrepreneurs and specifically tailor products to suit them, stressing that “women entrepreneurs form an important single market and viable that must be understood and served for the benefit of all. “

She said the lack of access to finance for women entrepreneurs necessitates broad stakeholder cooperation to develop interventions that support women-owned and-led businesses, stressing that “women’s empowerment should not be a concern. charitable cause that is sometimes considered to do good but should be at the heart of corporate strategies and macroeconomic policy. “

Quoting the World Bank, Ms Awadzi said that 44% of micro, small and medium enterprises (MSMEs) in Ghana are owned by women, and this sector accounts for about 92% of all businesses and contributes about 70% of the gross domestic product. from Ghana. .

Yet, she said, women businesses face many challenges, including lack of access to capital and technology to thrive.

Ms. Awadzi encouraged women entrepreneurs to venture into technology-related businesses to take advantage of the vast business opportunities that the sector presented.

“Women-owned and run businesses should also embrace digital financial services provided by banks to help formalize payments for their goods and services to help them create the relevant banking history needed to access essential financing for their businesses. companies, ”she said.

Ms. Awadzi paid a heartfelt tribute to women entrepreneurs, in particular to the late Dr. Esther Ocloo of Nkulenu’s fame whose work to establish the AGI decades ago has continued to bear great fruit for our nation.

“Indeed, women are often the unsung heroes of our national discourse. Our great-grandmothers, grandmothers, mothers, sisters and many of us have been entrepreneurs at one time or another producing goods. and essential services for our people, ”she stressed.