Gov’t, NBSSI, World Bank To Increase Funding For Startups
The Government in partnership with the World Bank and National Board for Small Scale Industries (NBSSI) is prepared to improve the startup capital for small scale businesses in the country from a GH₵100,000 to a new amount of at least US$20,000 this year.
This is a decision by the Director of Business Support at the National Entrepreneurship and Innovation Programme (NEIP), Mr Franklin Karikari who hopes the move will improve the entrepreneurship environment in Ghana.
Mr Franklin Karikari elaborated on this to Citi Business News, “This new policy will go a long way to streamline the entrepreneurship ecosystem space and give the needed support. For the startups, we’ve been giving them funding ranging from GH₵10,000 to GH₵100,000 and now as part of an acceleration phase together with the NBSSI and the World Bank’s funding support there will be a minimum of about US$20,000 to support the growth of small scale businesses for them to scale up and monitor their growth and performance along with their contribution to the economy in terms of the GDP and job creation”
Moreover, he pointed out that entrepreneurs within the age of 18 and 35 years who are passionate about agricultural businesses will be given a 3 to 5-year tax waiver to strengthen their operations.
“Government together with Ghana Revenue Authority (GRA) has been able to provide tax breaks for startups and small micro-businesses within the age bracket of 18 to 35 years and your business should be in the areas of manufacturing, ICT, horticulture, tourism and arts, medicinal planting, agro-processing and other related areas will be able to enjoy the tax break within 3 to 5 years”.
In 2019, the NEIP prepared a case to solicit for funds from the World Bank on the need to help entrepreneurs and small-medium businesses in Ghana with the required financial support to boost startups to improve and employ more workers.
With regard to this, entrepreneurs in Ghana are prepared to advance their businesses as NEIP and NBSSI work towards getting a US$200 million grant from the World Bank to support entrepreneurs and small and medium scale enterprises.
Mr John Kumah, Chief Executive Officer of NEIP emphasized earlier, “This grant when accessed will contribute towards overcoming some of the barriers that stifle the work of entrepreneurs and small and medium enterprises in Ghana”.