Anthony Adu- Nketiah, the Chief Executive Officer (CEO) of Thonket Group of Companies, has described the roles played by entrepreneurs as important to market economies since entrepreneurs act like wheels to a country’s economic growth.
By creating new products and services, entrepreneurs stimulate employment, which ultimately results in the acceleration of economic development.
Mr. Adu Nketiah said these when he was giving a public lecture at the Great Baptist University College (GBUC) in Kumasi recently.
Speaking on the topic, “Developing Systems That Promote Entrepreneurial Development,” the CEO of Thonket Group of Companies enlisted the roles of entrepreneurs in a country’s economic development.
He said that, by establishing the business entity, entrepreneurs invest their own resources and attract capital from investors, lenders, and the public.
This action of entrepreneurs he added, mobilizes public wealth and allows people to benefit from entrepreneurs and growing businesses.
He continued that, entrepreneurs are by nature and definition job creators as opposed to job seekers, saying “when one person becomes an entrepreneur, he or she reduces job seekers by one person and ultimately employs multiple other job seekers. This is one of the basic goals of economic development.”
Mr. Adu- Nketiah furthered that, entrepreneurs help increase the standard of living of a country not only by creating employment but also by coming out with innovative products and services that enhance the quality of life of employees, customers, and other stakeholders.
Discussing current system entrepreneurs operate under, he disclosed that banks execute loan facility letter or agreement that is skewed to only their business interest, while most customers would also sign under false notion that the bank is helping them to grow their businesses. “Most businesses may not need a loan but bank officials in their quest to achieve their assigned targets will lure them to take loan facilities and when they default then they turn back to say Ghanaian entrepreneurs do not like to repay their loans,” he stated.
Mr. Adu Nketiah revealed that there is a system where a customer who has little knowledge about financial records keeping and basic bank account reconciliation will put all their trust in their bank relationship managers where some of these managers would make fictitious entries in the innocent customers’ account or may deny them some credit entries of their deposits.
He also mentioned a system where suppliers or creditors unilaterally change their terms of engagement or agreements without giving most of the customers the opportunity to renegotiate the new terms. This he added, usually skewed to the benefit of these suppliers and gradually such entrepreneurs or businessmen would resort to loans to keep their businesses afloat, but with high interest at the bank, which eventually worsens their financial conditions and finally collapse.
“Sometimes also the account officers of some of our suppliers or creditors can deliberately make fictitious entries in their clients’ accounts and those businesses that are not able to reconcile their accounts on regular basis get hit by such acts and lose their businesses as a result,” he continued.
Another system he mentioned was employees, where they (employees) feel they are not well remunerated, and sometimes get demotivated to perform their duties, and may connive with others to steal from the company and may collapse it at the end.
Source : David Affum | Kumasi