Mr Mike Nyinaku
Mr Mike Nyinaku, The Chief Executive Officer of BEIGE Capital has cautioned stakeholders in Ghana to help build financial institutions that have the capacity to provide what he calls, ‘patient capital’ to facilitate the growth of small and medium enterprises (SMEs).
Mr Nyinaku explained while speaking at the TEDx Accra forum on the theme, ‘Finance or Crush’, that financing for SMEs was a major challenge in Ghana. He said this is because we don’t have a lot of development finance institutions in our country.
He said, The TEDx Program is designed to help communities, organizations and individuals to spur connections and conversations through local like-minded experiences.
Typically, development finance institutions are the kind of institutions that provide growth capital which is the type of capital that SMEs needs to push their business. Universal banks are at the end of the finance chain because they primarily offer short-term funding which is not usually suitable for business development at the early stages of an enterprise.
Mr Nyinaku said while addressing an audience of budding entrepreneurs on financing for their businesses, most of the businesses in Ghana had not lived to fulfil their full potential to allow the original owners to reap substantially from their investments.
He stated that most of these owners are still striving to achieve sustainability for their business, hence do not have too much idle cash to channel into private equity.
He explained such entrepreneurs have the luxury of channeling their funds into other investments. This is one of the reasons there are more private impartiality firms in the West than in Ghana.
However, In the advanced countries, a lot of businesses have fully endured their youthful lives and original owners, through the stock exchange and other means have diversified their interests and recouped their preliminary investment.
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