GHANA’S Agricultural Development Bank (ADB) has trained owners of Small and Medium-Sized Enterprises (SMEs) at a capacity building workshop aimed at boosting the financial literacy and efficiency.
At the opening of the two-day workshop in Tamale, Robert Karikari Darko, Executive Head SME-Banking at ADB stressed the need for financial literacy among SME customers and believed that the workshop would help in assisting ADB’s SME customers to practice sound business management to help improve their business.
“Knowledge in financial literacy determines the health of a business and basic bookkeeping and records of trade activities will in turn help us as a Bank to recommend appropriate facilities for your businesses”, Mr. Darko said.
The two-day ADB SME capacity building workshop held in Tamale forms part measures by ADB not only to serve as a strategic financial services provider to SMEs but an opportunity for the Bank and SMEs to understand each other a lot better and assist them to manage their businesses and also manage the loans the Bank has granted.
“It is very important that as a development Bank we understand your peculiar needs, but on the other hand, it is important that you also understand our requirements as a Bank in order to build a successful partnership” Mr. Robert Karikari Darko pointed out.
Ghana’s economy and especially businesses in the Northern Sector are predominantly made up of SMEs and Mr. Darko emphasized that it is important that Banks find ways to help the SMEs become more profitable and grow their businesses. “ADB considers SMEs as a key sector and therefore we have in place financial packages including short term, medium term and long term loans as well as contingency guarantees to improve and grow your SME operations” Mr. Darko explained.
Touching on the collapse in the operations of some SMEs, Mr. Robert Karikari Darko attributed the situation to poor management, mismanagement of loans and lack of information. “it is our desire to grow your business and I urge you to desist from diverting loans into other projects that had not been originally approved because such practices do not augur well for effective business management”, he advised.
Securing of loans and guarantees have become the main cry and challenge for SMES operators and owners, but Mr. Darko revealed that by “incorporating basic financial and accounting principles as SMEs owners and submitting the right information are crucial for SMEs to accessing funds” Mr. Darko added.
Participants at the workshop were offered training in various simple banking and accounting practices by John Quarshie, Managing Partner of Cushay & Associates. These included benefits of good accounting system, elements of financial statements, statement of financial position and the importance of managing your working capital.
African Eye News.com
