00:01
So the question says critically examining why businesses that are made up of two or more people coming together with the aim of making profit fail in ghana.
00:09
You are to support your answer or your answers with relevant examples.
00:15
Okay.
00:17
So examining why small businesses coming together with the aim of making profit fail in ghana.
00:23
Small and medium -sized enterprises in ghana due to the nature of ghana's economy and is difficult to quantify just how important they are, but estimates suggest that 70 % of all gdp contributions come from such enterprises.
00:40
Despite their importance, there are significant barriers to growth of the small, medium -sized enterprises, including a lack of affordable finance, restrictive, restrictive legislation and a lack of international exposure.
00:59
Challenges faced by all small businesses in ghana includes the following.
01:07
So one of them is conventional, conventional funding sources, conventional funding sources are difficult to assess, are difficult.
01:34
To assess as the enterprises are perceived to offer higher risk.
01:42
As the enterprises are perceived, perceived to offer higher risk.
02:07
As a result, high interest rates, collateral requirements, and complicated processes impede the access of smes to capital.
02:17
Smes can be divided into two categories can be divided into two categories we have organized and organized organized and unorganized the former describes businesses that have paid employees and a registered office how the latter includes businesses that operate from temporary structures or at home employing few or no salaried workers.
02:53
Unorganized smes are often micro enterprises owned or run by females who can experience increase impediments to capital.
03:07
The next point here to notice that there is high, there is a high startup cost.
03:21
There is a high startup cost involved in properly registering cost improperly registering a business, registering a business in ghana, meaning few smes move from being unorganized to organize...