Ghana’s overwhelming business regulations are stifling micro, small, and medium enterprises (MSMEs), severely limiting their growth, formalization, and ability to create jobs.
A study by the Institute for Liberty and Policy Innovation (ILAPI) reveals that duplicate mandates, heavy documentation, hidden processes, and long registration delays are driving up costs and draining capital away from productive investments.
Despite accounting for 92 percent of all businesses and nearly 70 percent of Ghana’s Gross Domestic Product, small enterprises bear an unsustainable administrative load.
Unveiling the findings in Tema, ILAPI Senior Research and Policy Analyst Stephen Dansu noted that startups and micro-enterprises are hit hardest because their limited capital cannot cover the cascading fees for multiple registrations, permits, and certifications.
The report, which surveyed 600 businesses across the manufacturing, technology, and tourism sectors, highlighted steep financial hurdles.
On average, registering a business costs GH¢1,030, local assembly permits average GH¢1,275, and regulatory licenses average GH¢1,600, with some enterprises paying up to GH¢3,000. Instead of fostering economic growth, tax revenue, and employment, the current system acts as a major barrier to progress.
To fix these systemic bottlenecks, ILAPI is urging the government to overhaul business regulations by removing redundant requirements and simplifying compliance rules for small entities.
The institute also advocates for a centralized digital platform that allows entrepreneurs to secure all necessary permits and licenses through a single application rather than navigating multiple agencies separately.
By: Rainbowradioonline.com/Ghana
