The head of the Department of Finance-UCC, Dr. Anokye Mohammed Adam says government should explore other economic interventions beyond the 600 million Ghana Cedis stimulus package to support small and medium scale enterprises within this Covid 19 period.
As the pandemic has stagnated economic activities, many businesses are now fraught with fiscal challenges, for which government through the National Board for Small Scale Industries-NBSSI has released some 600 million Ghana Cedis as aid.
However, Dr. Adam believes this is not enough looking at the number of businesses going in for the support.
read also: GJA petitions Akufo-Addo to consider journalists in stimulus package disbursement
He said, “Looking at the analysis from the stimulus package, it is inadequate considering the number of SMEs we have. Government can do more by cushioning these SMEs to be more productive so they can be sustained enough and probably take over after the covid19.”
Dr Adam contributing to the maiden School of Business Coronavirus Pandemic and Financial Therapy webinar on Wednesday noted that additional cushioning from government would enable SMEs take advantage of the period and expand their businesses.
“As we now have restrictions, more businesses can take advantage of the short in supply of imports and look at how they (SMEs) can also substitute what we are unable to import, but the unfortunate thing is that most of them have lost their capital due to the initial economic disruptions.”
Reiterating the need for extra cushioning from government, the Dean of the School of Business-UCC, Professor John Gartchie Gatsie suggested that government offered inclusive empowerment by dedicating funds in areas that it could achieve some comparative advantage.
He again added that as a country, “we need to also embrace the fact that we have learnt, during this covid19 period, the power of creativity. We need to empower our micro businesses, startups, entrepreneurs and young ones to be creative and when they are creative and are able to put in place ideas that can generate productive services and businesses then we can dedicate some funds to focus to financing those ideas and creativity that have been created”.
Professor Gatsie noted that drawing lessons from the economic constraints presented by Covid 19, SMEs in the future should develop the culture of reinvesting into their businesses.
SOURCE: Joseph Kobina Amuah/ATLFMNEWS
