A project has been launched to provide Small and Medium-sized Enterprises (SMEs) with access to full-time Accounting and Business Development Services at their convenience aiming to reduce the cost of services for them.
Named “Jobs for Graduates, Profit for SMEs (JY-PS)” the project aims to enhance entrepreneurship ecosystems by addressing key challenges faced by SMEs. These challenges include limited access to investments, low sales, poor financial record-keeping and a high loan default rate.
The flagship project led by Finance Factory (FIFACT) in collaboration with Tradeline Consult Limited and the National Service Secretariat (NSS) aims to equip Business Development Officers (BDOs) with sector-specific skills.
These officers will assist the Ministry of Micro, Small and Medium Enterprises (MSMEs) in unlocking and accessing investment and financing opportunities under the JY-PS initiative.
The project aims to raise over $200 million in investment for SMEs create 1,600 direct jobs and generate 5,000 indirect jobs across various value chains.
This initiative comes at a crucial time, considering projections from the International Labour Organization (ILO) which suggest that over the next decade only one job will be created for every four young people entering the labor market.
The National Service Secretariat (NSS) deploys approximately 100,000 young people annually but not all of them secure permanent employment after their service.
Additionally, statistics indicate that around 70% of SMEs or startup businesses collapse within the first three years of operation due to various challenges including limited access to Business Development Services and perceived high costs of service delivery.
The statement outlined that Tradeline will take the lead in developing robust, scalable and profitable businesses to attract investments for the SMEs, while NSS will provide support in deploying the graduates for the project.
The statement further mentioned that FIFACT had forged partnerships with a consortium comprising impact and corporate investors, auditing firms, financial institutions, youth hubs, professional business and accounting institutions, as well as business associations and clusters of SMEs.
Background
The statement elaborated that the FIFACT model stemmed from Tradeline Consult’s effective Business Advisory Service partnership with the Financing Ghanaian Agriculture Project (USAID-FinGAP) in the agricultural sector. It noted that the model had undergone thorough piloting with support from USDA/ACDI-VOCA under the Ghana Poultry Project across four regions.
“Given the successful pilot and growing demand from SMEs, along with numerous job applications from graduates, there is a clear imperative to scale up the initiative through strategic collaborations,” it concluded.
Impact
The statement emphasized that FIFACT would extend its services to a larger number of SMEs in need of Business Advisory Services, offering specialized support to marginalized rural enterprises, female-led businesses, and individuals living with disabilities nationwide.
The plan is to train and send out 1,600 Business Development Officers (BDOs) in the next five years. We’ll pick 100 from each of Ghana’s 16 regions making sure over half of them are women.
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Each BDO will help around 20 small businesses in various fields like farming, healthcare, schooling, renewable energy, and technology. This means they aim to assist a total of 32,000 small businesses nationwide in the next five years.