Regulatory policy

Social Enterprise Ghana advocates policy intervention to ensure growth

The policies, they said, should include a well-defined regulatory framework such as a legal status for business registration for the sub-sector.

This was announced yesterday in Accra at a workshop organized by Social Enterprise Ghana in partnership with Reach for Change.

He had the theme; “Redesigning Ghana’s Economy for Sustainable Development: Is Social Enterprise the Answer?” »

The workshop aimed to provide participants with information on social enterprises, social enterprise financing and the current status of Ghana’s social enterprise policy and to obtain input from stakeholders on the need to adopt the Ghana’s social enterprise policy.

The Executive Director of Social Enterprise Ghana, Mr. Edwin Zu-Cudjoe, speaking at the workshop, said that social enterprises in the country are facing certain challenges which are affecting their growth in the country.

Some of the challenges, he said, included the high cost of credit, inadequate regulation of the sub-sector, unstable exchange rate and inadequate infrastructure (hard and soft) to support their operations.

According to Zu-Cudjoe, the regulatory landscape was difficult for social entrepreneurs to navigate and arguably did not reflect the mixed-value trend.

He said, for example, that social entrepreneurs struggled to access existing tax exemptions and other benefits given to social purpose organizations, adding that “in terms of business registration, there is no designation for social enterprises”.

He called for adequate and affordable power supply for businesses, a reduction in financing costs such as interest rates and a reduction in government borrowing from the local financial market to enable businesses to access capital. .

He also called for a stable exchange rate between the Cedi and major foreign currencies and inclusive frameworks to include people with disabilities and women, as well as accessible and improved public procurement processes that would benefit businesses. social.

In a presentation on “the state of social enterprises in Ghana”, a lecturer at the Technical University of Accra, Mr. Josiah Nii AduQuaye, said that with a population of 30.2 million, Ghana there were about 2.3 million small and medium-sized enterprises (SMEs) registered and about 858,000 employees worked in these SMEs.

This, he said, averaged 0.4 employees per SME, adding that “more than 95% of social enterprises in Ghana needed to grow or increase their turnover.

“Ghana has relatively lower proportions of full-time female staff, around 37%. Similar trends were evident for part-time staff. Ghana has very few social enterprises run by people under the age of 24,” he added.

Mr. Solomon Twum, Country Director of Reach for Change, on his part advocated for the establishment of public policies, legal and regulatory framework to support the creation and development of social enterprises in Ghana.

He said the state support and contribution channeled into Ghana’s social enterprise policy would be spent wisely to support job creation, economic empowerment and community development as social enterprises do not do necessarily profits for themselves or their owners, but reinvest their profits for social impact.

“I think this is another efficient way to use public resources than the alternative methods.

To this end, public policies in support of social enterprises will allow the government to address the youth unemployment crisis and other challenges more effectively and efficiently, while improving the spending of public money,” he added.