Propel SMEs to become global giant

Mr. Michael Nyinaku, Managing Director, BEIGE Group, a private equity firm has challenged the country’s economic promoters to invest and propel small businesses to attain the level of real stability and maturity to become global giants.

This, he said, will happen only when governments are able to create an enabling environment for such small companies to grow into a viable global businesses which would provide livelihood and economic opportunities for individuals.  

“It’s normal to expect most of the small and medium scale enterprise (SMEs) in any country to be owned and run by natives but there’s also an emerging trend where natives are beginning to own respectable shares in Multi-National Companies (MNCs) operating in their respective countries.

“This is because MNCs are very crucial in any society and as a matter of fact most SMEs revolve around them and would not survive if these companies or corporations cease to exist,” said Mr. Nyinaku at the fifth Ghana Economic Forum (GEF) which seeks to promote a Ghanian-owned economy which can easily drive up sustainable growth across all sectors of the economy.

The forum, spearheaded by the Business & Financial Times was aimed at reshaping the future of the country and brought together business executives, policy makers, industry chieftains, stakeholders and business owners.

The GEF 2016 which was under the theme: ‘A Ghanaian owned economy- setting the agenda for achieving it,’ was an ideal platform for local experts to discuss new ideas, and  better exciting ones as the country seeks Ghanaian solutions to  the problems.

Mr. Nyinaku believes that a Ghanaian owned economy remains that economy where at least 40% of gross domestic product is derived from the economic activities of businesses of Ghanaian ownership.

“It’s not too ambitious an aim to have because really that seems to be the case with most of the countries that a small mind like mine would consider as showing signs of prosperity. I can speak of Cote d’voire, Nigeria, Egypt until recently, South Africa and advanced nations like Japan and others.”  

Mr. Nyinaku: “Isn’t it a shame that 60 years down independence we cannot count even 10 MNCs from Ghana. And by this I’m not talking companies owned by individuals who may have some skeletal branches outside Ghana, I mean companies listed on the stock exchange, employing massive numbers and who have been able to extend their dominion across our borders. That’s what I’m talking about.

He urged governments to create an enabling environment for small businesses to operate which would provide livelihood and economic opportunities for individuals.

“You don’t have to expect BEIGE Capital to organically grow into becoming Ecobank, just like that. It doesn’t happen. A company like Ecobank was created into being by forces of greater influence. Same can be said for others like Dangote, GLO, United Bank for Africa and the like.

“And for that to happen there has to be a willingness on the part of the force that has influence over the system and can make things happen - in this case, the government – and also a willingness on the part of owners of the vessel that has potential to be exploded.

“Without this, if you are waiting for such monster companies to emerge through organic transformation then we would be waiting for a long time.”

He observed that before most Ghanaian companies attain the level of real stability and maturity, their promoters would have been tired because they would have been running for well over 20 years or more and most of them would be in their late fifties and some past 60.

“Obviously these gallant men would have contributed to society by providing employment and support to the social system and all….they are tired and want to rest. Their entrepreneurial spirit would have declined somehow and they would rather like to keep it cute and safe within the family.”

He stressed the need for the states to propel small firms into global significance if indeed that means anything to the states,” that is how it happens everywhere.”

These companies, he said when they become global giants will have the mandate to give back to society bountifully, “So if I become president I’d take a keen interest in those businesses that have reached a stage where they can be propelled into global significance….and I’d blow them up. But wait, not just that I’d ensure that they are mandated to give back to society bountifully.”

Giving an instance, he indicated that the former Nigerian President Olusegun Obasanjo propelled DANGOTE, GLO, UBA and others that have become global giants today and these huge companies in 20years ago were only domiciled in Nigeria.

“Today these huge corporations are littered all over the continent and in even in the West, taking territories and enlarging their coast. In Ghana, they dominate some of our industries with audacity, we patronize them with zeal and sometimes refer to them as though they are supermen.They are not,” he remarked.