SME unit set-up to provide strategic direction

Accra, March 11, GNA - A new Small and Medium Enterprises (SME) Unit has been set up under the Ministry of Trade, Industry and President's Special Initiative (PSI) to provide strategic direction for their development.

Addressing a luncheon organized by the EMPRETEC Business Forum under the theme: "Opportunities for SME in the Golden Age of Business", Mr Alan Kyerematen, the Sector Minister, said the unit would see to the implementation of a number of programmes that would boost growth in that Sector.

He mentioned some of the programmes as, the Rural Enterprise Development Programme (REDP), Sub-Contracting and Partnership Programme and the Technology Improvement Programme.

Mr Kyerematen said the programmes in themselves would not achieve the desired goals without the appropriate industrial collaboration with relevant business associations and private sector groups. He said the focus of the Ministry was to develop a vibrant, productive and competitive SME sector to provide the impetus for enhanced productivity and employment.

"We have in this direction recognized the need for other direct economic policy interventions in support of SMEs in the form of tax rebates, location incentives and technical assistance such as the provision of research support, business advisory services and trade promotion."

He said while critically examining the macro economy there was the need to also look at the management and operational practices from within in adherence to the principles of good management.

He said the Government was committed to the development of sound entrepreneurship, which is a major component in the development of the private sector, particularly in the promotion of SMEs.

Mr Kyerematen said the role of SMEs constituted an estimated 70 per cent of all industrial establishments within that sector and contributed the highest percentage of industrial export.

He said despite the known benefits of SMEs to the economy their dynamism had not been enough to register the required impact on the economy.

Indeed a private sector friendly environment was critical for the achievement of the objectives of the Ghana Poverty Reduction Strategy, which embodied the objective of equitable distribution of development to bring it closer to all

Mr Kwadjo Nyarko, President of EMPRETEC Business Forum, Accra Chapter, said the luncheon was to create a one-stop shop for all SMEs in the system to air their grievances to see how best they could be addressed by the Minister.

He said it was also aimed at pushing the private sector into the mainstream of issue to ensure that they were given some preference to enable them to compete favourably with their foreign counterparts. Mr Nyarko said currently, even though the interest rate was going down, the present level of 30 per cent did not auger well for businesses.