Most SMEs fail because they lack appropriate guidance – Chief of Staff

Chief of Staff Julius Debrah has underscored the vital role of guidance and advisory services in ensuring the success of small and medium enterprises (SMEs) in Ghana.

Speaking on the challenges faced by SMEs, Mr. Debrah noted that many businesses struggle or collapse prematurely due to a lack of proper support and foundational knowledge.

In an interview with Citi News on Tuesday, April 15, Mr. Debrah explained why financial institutions such as the African Development Bank and Exim Bank will be participating in the upcoming Kwahu Business Forum 2025, scheduled for Saturday, April 19.

“You know, as we all sit here, generally speaking, everybody says that, oh, if you need support, go to the bank. If you need support, go to the bank. People may not even know that there are banks that even offer advisory services,” he remarked.

He highlighted the importance of these advisory services, which help entrepreneurs navigate essential early steps, such as conducting feasibility studies before starting a manufacturing venture.

Mr. Debrah stressed that without such guidance, many SMEs are ill-prepared for long-term sustainability.

“They think they could just do it, you know, and that’s why most SMEs start and they fail. But they don’t get appropriate guidance from the word go,” he added.

He expressed confidence in the positive impact of institutions participating in the Kwahu Business Forum, noting their ability to educate and support entrepreneurs.

“These institutions that are coming, I believe they are all gonna talk about the various things they can do to support the business community,” he said.

Mr. Debrah encouraged entrepreneurs to take full advantage of the forum by engaging with these institutions, listening to their advice, and aligning their business goals with the resources available to them.