The founder and co-chair of Social Enterprise Ghana (SEG), Madam AmmaLartey, has called for a new approach to capital for social enterprises to help them grow their businesses.
He observed that although social enterprises play an important role in the socio-economic development of the country, they are charged interest rates that sometimes hinder their activities.
Therefore, Madam Lartey called on the government to introduce the method of Capitalist Capital Scheme with low interest rate, and not just convection capital with good returns.
“Currently more than 70 percent of interest rates are charged to Small and Medium-Size Enterprises (SMEs). We need proportional refunds so that business can be built on models that will transform Ghana. Allowed by Capitalist Capital Scheme the investment of the third party seven times the initial investment of the SME which can be a good key to close the financial companies.
Addressing participants at the annual Social Enterprise Ghana (SEG) forum under the theme “Partnerships for Sustainable Development: Social Enterprises as catalysts for inclusive growth in Ghana, at the British Council on Friday, MrsLartey highlighted three key areas of recommendations to help the growth of SEG and SMEs.
He called for more quality technical assistants in a more comprehensive manner; which increases the number of service providers for business.
Also, he said, there should be an increase in capital raised service providers where people can work with business and raise money to subsidize some of these services to SMEs, including SEG to have access.
The SEG founder added that steps should be taken to ensure affordable currency hedging solutions where businesses can do well; but the economic situation will reduce the growth due to the dominance of foreign currency.
MrIssaOuedraogo, founder of B-BOVID – an agribusiness company, also called on the government to have a legal framework that would enable indigenous social enterprises in the country to be exempt from certain taxes.
MrOuedrago observed that for small profits, they are made to pay high taxes that sometimes destroy their activities.
Therefore, he called on the government to have a second look at the taxation of social enterprises.
According to MrOuedraogo, Social Enterprises do more work than NGOs, but they pay taxes, like any business.
He added that there are three main things that are the planet, people, and profit in which people in the center should take care of the environment and it is also sure that it is beneficial.
The day-long event brought together social entrepreneurs, hub owners, policy makers, researchers and various stakeholders in the social business ecosystem.
Also, it provides a channel for entrepreneurs to share their experiences of how their business has developed over the years and the challenges encountered.