Small and Medium Enterprises (SMEs) are vital economic drivers in most countries where more than 85% of enterprises are SMEs. Yet, recent studies suggest that the vast majority of Ghanaian Small and Medium Enterprises (SMEs) fail before reaching their fifth year in operations.
Speaking at a One-day Bookkeeping workshop for Business Productivity on Tuesday, April 20 in Accra, a Senior Lecturer of Finance at the University of Ghana Business School (UGBS), Dr. Mrs. Vera Fiador, indicated that there was a need for businesses to develop efficient ways of documenting and keeping records to ensure productivity. She cited that majority SMEs in Ghana are unable to achieve their desired growth as a result of the lack of proper bookkeeping.
Dr Fiador stated that loans applied by SMEs from Financial institutions were turned down because financial institutions would not like to invest in companies whose daily transactions were not transparent. She also added that adherence to proper bookkeeping ensures good financial records and builds robust financial profiles for better decision making.
The workshop was organised by the Accra Regional Chamber of Commerce and Industry. The event was aimed at equipping participants, who are mainly members of the Chamber, on the need for proper bookkeeping.
Source: Daily Graphic
copyright © 2016 University of Ghana Business School. All Rights Reserved