Don’t Rely On Bank Loans
– Capt (retd) Amoabeng tells Startups
Story: Abdulai SAAKA, Accra
CAPTAIN (retd) Prince Kofi Amoabeng, Chartered Accountant and Founder of the P. K. Amoabeng Foundation, has charged first-time entrepreneurs to avoid relying on bank loans to launch their businesses.
Speaking at the maiden edition of the CEO Breakfast and Networking Meeting in Accra, Amoabeng cautioned that the high interest rates and cumbersome processes involved in acquiring bank loans in Ghana make them an unfavorable option for new business ventures.
Instead, he advised entrepreneurs to seek financial support from wealthy family members and friends. “The obvious path is to go to friends, relations, all these. But remember that people who have money value money, so go to them and make a proposal that offers interest on their money” he explained.
However, Amoabeng stressed the importance of trustworthiness, urging entrepreneurs to maintain transparency and a clear plan when seeking help from their personal networks. “Make sure you have a solid plan to pay back, or people won’t help you again,” he added.
While his remarks primarily addressed the challenges of CEOs in Ghana, Amoabeng also used the platform to advocate for a broader overhaul of Ghana’s democratic system. He argued that the country cannot thrive under its current democratic model, particularly criticizing the ‘one-man-one-vote’ system, which he believes is ineffective in electing the right leaders due to high levels of illiteracy and poverty in the electorate.
“I don’t think this democracy can ever give us the kind of leaders that we need,” Amoabeng said. “With a lot of illiteracy in the system, it’s difficult for the majority to elect a leader based on issues rather than what is given to them.”
His concerns echo the sentiments of various civil society organizations and political experts who have called for amendments to Ghana’s 1992 constitution. These groups argue that the concentration of power in the presidency undermines governance and hinders democratic progress.
Amoabeng noted that while change is necessary, it will be difficult to achieve because those currently in power are unlikely to relinquish their authority. He remains hopeful, however, that with continued efforts to educate the youth and instill new values, Ghana can eventually find leaders who will champion the needed reforms.
“We have to keep trying, educating the young people, and maybe someday we will find a leader willing to make these changes,” he said.
In conclusion, Captain Amoabeng’s dual message encouraging entrepreneurs to seek alternative funding sources and advocating for democratic reform’s resonates at a time when both the business community and political landscape in Ghana are facing critical challenges. His advice serves as a reminder of the importance of strategic decision-making, both in business and governance, to ensure long-term success.
