SMEs told to be transparent so they can attract investments

Mr. Percival Ofori Ampomah, General Manager, Venture Capital Trust Fund (VCTF), has advised Small and Medium scale Enterprises (SMES) to be transparent in their operations to attract investors.

He said honesty and trustworthiness were key factors investors looked out for in small businesses before they invested in them.

Mr. Ofori Ampomah said this at the Ghana Digital and Innovation Week being held at the Accra International Conference Center from Thursday, October 3 to Saturday, October 5.

Speaking on the theme: “Innovative Financing for Ghanaian SMEs and Startups,” Mr. Ofori Ampomah said funds from Venture Capitals (VCs) and other investment funds had always been available, but many entrepreneurs were unable to access them due to issues of trust.

 “Venture Capital (VC) is available; Government has for some time now provided money for a very long time….The funds are available but the challenge we have always had is with entrepreneurs accessing the funds… If you want to raise financing from a VC, the first thing is to be honest and trustworthy,” he said.

Other disclosures Mr. Ofori Ampomah made regarding what investors looked out for in small businesses were guarantee for job creation and eco-friendliness.

He said businesses that demonstrated that they could create jobs and at the same time not destroyed the environment were businesses VCs and other investors preferred to support.

Mr. Ofori Ampomah said startups and SMEs must also demonstrate to investors that the businesses they wanted the funds for were their main jobs and not side hustle.

He, therefore, advised SMEs and startups to exhibit honesty, commitment and engage in eco-friendly business activities to be able to raise capital for their businesses and create jobs for others.

Source: GNA