Business in Ghana

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Posts Tagged ‘Budu Koomson’

A Regulator’s Dilemma: Market Dynamics v 3rd Parties

Posted by Business in Ghana on October 17, 2010

By Sydney Casely-Hayford.  Sydney@bizghana.com

At a recent SME conference hosted by the accounting body, ACCA and the Enterprise Development Service (EDS) of the University of Ghana Business School (UGBS), Retired Captain Budu Koomson from UT Financial Services and UT Bank, explained his version of SME recalcitrance, which makes access to finance and support to the sector problematic at the best, but certainly not impossible.

Some important bottlenecks identified by a thirteen-year practitioner, grouped into 3 pillars.  Government, SME’s and Banks.  Poaching from the Retired Captain’s notes, out of the 6 anchors under Government, we can blame our leaders, who have not put together a regulatory framework with strong institutions to support SME’s.  The Banking environment anchors around 5 points including a chaotic environment and latent mistrust of the SME sector.  But SME’s themselves are faulted for various cultural practices and social (extended family and friends) pressures.

And this is where our problems emanate. Read the rest of this entry »

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The SME Conundrum

Posted by Business in Ghana on October 17, 2010

By Sydney Casely-Hayford, sydney@bizghana.com

We are paralysed in such a way that our thinking capacity is hemmed in by old age practices and cultural norms that threaten to collapse our entire financial system.  Our way of doing things makes corruption a norm rather than a cancerous option to be avoided, replaced by sound financial management and good book keeping at the least.

What has now come to be known as the “UT Way – a loan in 48 hours” is fast challenging the traditional banks, as recent upstart in the financial sector, UT Bank takes over from the orthodox way of business as usual.

Last week, 8th October, Retired Captain Budu Koomson of UT Bank provided great insight into possible solutions for the SME conundrum of access to finance.

Successive Governments tout the private sector as the engine of growth for Ghana and in consequence the SME sector becomes the focus for all planning but unfortunately, more rhetoric than action.

Presenting his concepts for “curing” the SME problem, Budu Koomson described three pillars and several anchors to pin these pillars down for possible resolution to our SME conundrum.

Government, Banks as Suppliers and SME’s.  A crisp list of his views needs very little elaboration. Read the rest of this entry »

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