Mr. Kofi Bentil, a business consultant and lecturer at Ashesi University has asked the government to provide SMEs with a tax-free 5-year period of operation to allow these indigenous small companies have a firm footing before these taxes are introduced.
Mr. Bentil who was a panel member at the Joy Business/World Bank Economic Dialogue Series on the theme "Stimulating Small Business to Achieve Faster Economic Growth" outlined three radical points that he says would help boost the SME sector.
He said the main frustrations of start-up businesses come from the government and municipal assemblies who have placed taxes on the businesses before they even start operations.
Mr. Bentil added; “you have graduates who don’t have work and you have small businesses that have work and need graduates. You can’t connect them because graduates are too expensive. You hire him [graduates], you have to pay tax, you have to pay social security…and then the government comes in to put money in LEAP and Youth Employment, millions of dollars that go waste mostly… and the same government comes in to tax the small businesses who need the graduates most.”
Secondly, Mr. Bentil suggests, for the SME sector to receive the necessary attention, lands and uncompleted buildings need to be titled properly. This he said, would allow entrepreneurs to have the needed backbone to get funding for starting their businesses or for expansion.
He said “it is not the duty of the bank to give anybody money to start a business”, insisting that individuals who want to start a business must work to find ways to get support from close relations or use properties that they own to get such financial support.
In his third point, Mr. Kofi Bentil further proposed that there is no venture capital to help entrepreneurs who have great ideas and want to set up. “We don’t have any venture capitals in the country. They are in name only, there is zero, none.”
He explained that the venture capitals are supposed to take risks or help entrepreneurs take risks after adequate assessments but these venture capitals have become banks and ask for the same requirements that banks do. He has therefore advised the government to ‘force’ venture capitals to ‘venture’ and do what they have been set up to do.
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