This is a seventh part of a series of articles concerning the role of various institutions, stakeholders and actors in revitalizing the ailing Ghanaian economy.
The rising unemployment situation in the country (especially youth unemployment) is detrimental to growth, stability and the future prosperity of the country. However, in this very difficult shift to slow growth and economic activities lays an opportunity for the country to restructure its development policies/strategies to ensure a sustainable long term development and growth in the country. The country’s leaders should cease this opportunity, and take the needed actions (could be painful) to transform the country to a more sustainable, self reliant growth model – Vibrant entrepreneurship society (Job creation through small-medium scale industries).
The harsh austerity policies are particularly hurting entrepreneurship activities in the country due to increase taxation, spending cuts and spread of job insecurity among the working population. The shrinking domestic economic activities and growth are due to lack of public and private investment causing low domestic consumption and production activities. The slowing down in domestic economic activities has negatively impacted on the nation’s ability to address its most pressing issues – Unemployment. In this context, enhancing job creation through small to medium scale entrepreneurship activities nationwide are important elements to be considered by the country’s leaders (all stakeholders).
Entrepreneurship as described here involves the process of starting and or running a business (i.e. a company or organization). The role of entrepreneurs cut across developing a business plan, acquiring the human and other capital resources for ensuring the success of the enterprise. In this regard, entrepreneurs are people willing to take risks and exercise initiative, taking advantage of market opportunities and prevailing conditions by planning, organizing, and employing resources often by innovating new or improving existing products. The success or failure of entrepreneurs directly depends on the environment in which the entrepreneur operates. Suitable business operating ecosystem with the requisite infrastructure and technical support mechanisms therefore enhances entrepreneurship to thrive and flourish. In this respect, both public and private support (i.e. Government, Universities/research institutions, Media, etc.) to aid entrepreneurs achieve quality levels equivalent to global standard(s) in the country is very vital.
Given the right support and operational environment, the country’s entrepreneurs could find new routes to stimulate growth and innovative solutions to the many challenges facing the country. However, for entrepreneurs to be able to play an effective role in addressing the issues of rising unemployment in the county, a shift in the way the nation’s wealth is distributed or allocated must be considered. The nation’s leaders got to recognize that, they cannot rely on existing austerity policies alone to stimulate growth, job creation and employment across the country. Instead, they will need to take bold steps in supporting small-medium scale entrepreneurs in terms of finance, policy and technical know-how not only to establish but to flourish and compete internationally.
An innovative but flexible entrepreneurship-related credit schemes must therefore be given a priority in the way the nation’s wealth is allocated to various sectors. This will enhance the ability of entrepreneurs to acquire the necessary capital to create sustainable jobs at all levels. Such support to entrepreneurs will enable the country to ensure long-term economic growth and development while consolidating any future gains it does reap from increasing employment in the country.
As usual, your comments, criticisms and questions are welcome.
Author: Dr. Amos Mensah
Agricultural and Resource Economist (Post-Doctoral Research Fellow at Georg-August-Universität Göttingen)
