Succession strategy for SMEs being prepared

As a long term initiative aimed at enabling Small and Medium-sized Enterprises (SMEs) to survive beyond their first generation ownership and management, a succession planning strategy spearheaded by the private sector is at an advanced stage of completion.

The project which is an initiative of the Institute of Directors (IoD) Ghana is in partnership with African Corporate Governance Network (ACGN) and International Finance Corporation (IFC) and is expected to be launched on 22nd November, 2019.

This major step is in response to the fallout from the Corporate Governance conference held last May in Accra organized by the IoD-GH and its partners have pledged their optimal support for the project.

In effect, the project will not only serve as a mechanism to enable small business entities to survive beyond their first generation; it will as well enable the private sector to take optimal advantage of the opportunities that present itself in the business ecosystem, most especially, the yet to be implemented Africa Continental Free Trade Area (AfCFTA).

The objectives of the project include but are not limited to providing a structured approach towards SME development through mentoring; and training of SMEs in Corporate Governance and Management among others.

To fast track completion of the project, the IoD and its key implementing partners recently held a breakfast meeting to brainstorm on the appropriate development strategy towards finalizing the project.

Recent developments on the global and local corporate scene indicate that there is the need for greater synergy and collaborative learning between corporate enterprises and it is partly because of this the IoD sees it as important to build the long term capacity of SMEs in the country.

Briefing the Goldstreet Business, President of the IoD Ghana, Rockson Dogbegah said there is the need for a certification scheme in corporate governance for SME’s to enhance their appreciation of business growth and sustainability.

“This will also limit the risk and fear of stakeholders in dealing with SMEs. This if positioned well could serve as leverage for accessing financial and other related supports needed to support SME growth and development”, Mr. Dogbegah reiterated.

In Ghana, it is estimated that SMEs contribute more than 70 percent of Ghana’s Gross Domestic Product (GDP) and account for 92 out of every 100 businesses. Globally, the contribution of Small and Medium Enterprises to the growth of national economies is considered as significant.