Prospective Small and Medium Enterprises (SMEs) and enterpreneurs who lack start up business capitals to begin businesses have been advised to package their ideal business ideas in a manner that would help them attract sponsors and investors rather than looking up for start up capitals from financial institutions with their untested ideas.
Mr. Ekow Mensah, Chief Executive Officer of The Africa Network of Entrepreneurs and chairman of Ekow Mensah Investments noted that banks were unwilling to take such risks of investing monies into business ideas that had not been tested because such monies did not belong to the banks.
He disclosed this at a day’s business clinic organized by Freskan Resources Company (a Marketing and Accounting Consult), at Koforidua for about seventy entrepreneurs drawn from across the Eastern region and beyond.
“It’s on very rare occasions that business ideas get funding from banks and financial institutions because the monies they have is not theirs but investors’ money and they are not going to play with it on untested business ideas and concepts. The reason why banks ask for track records is to prove that you are not going to waste the fund,” Mr. Mensah noted.
The prospects of many young people to venture into businesses have always hit an obstacle owing largely to non availability of start up funds.
The predisposition of most of these frustrated young people is the desire for capital once a business idea hits them, the absence of which such a venture cannot be undertaken.
But business experts have described such ideas as ‘value’ that ought to be well-packaged to attract individual sponsors and investors, a position Ekow Mensah shares.
‘Finding capital should be people’s first quest but the first question they ought to ask themselves is ‘how do I package this business idea in such a way that it will be attractive to people that have money such as sponsors, investors or friends and family?” he said.
The astute business executive also wondered why a lot of people with business ideas always hoped for ‘capital in the form of manna’ when they themselves can’t raise such monies to finance their ideas.
“A lot of the time people are looking for free money. They don’t want to work for it even when their ideas have not been tested and they want to play with people’s money which is why they don’t get the capital. There are a lot of resources and people are willing to put such resources into business ideas that have value and the capacity to deliver goods and services that meet people’s need,” the chairman of Ekow Mensah Investments admonished.
The programme, organized by Freskan Resource Company also attracted representatives from the banking, insurance and investment institutions.
“Effective customer service – a tool to gaining competitive advantage”, was the theme chosen for the programme.
Executive Director of Freskan Resources Company, Mr. Frederick Ntim Boafo who expressed satisfaction at the event explained to Rite news that the main aim of the clinic was to offer the required guidance and counseling by start-up businesses, incoming SMEs as well as enterpreneurs.
The clinic also assisted the participants to adopt best business management practices to become more efficient and vibrant.
The Freskan Business Clinic was run with the support of the Ghana Commercial Bank, PrintBoss, Metropolitan Life, Plus 2 Pub, Global Print, Indomie, Chocho Industries, Hwimicos Enterprise, Godel Ventures, Starlife and the Broadlight Foundation.