Financial Discipline: Key For MSMEs

– Success not a matter of luck – Prof Lartey

Story: Isaac AIDOO, Accra

VICE-PRESIDENT of Regent University College of Science and Technology, Prof. Samuel Lartey, has underscored the critical role of financial wisdom and resourcefulness in achieving entrepreneurial success during a workshop aimed at empowering Micro, Small, and Medium Enterprises (MSMEs).

The event, organized by GCB Bank, brought together a diverse group of entrepreneurs, financial executives, and stakeholders in Accra.

In his presentation titled ‘Financial Wisdom and Resourcefulness,’ Prof. Lartey emphasized that financial success is not a matter of chance, but the product of strategic planning, discipline, and ongoing learning.

 “Dear Entrepreneurs, financial success is not a matter of luck but of wise planning, persistence, and learning,” he remarked, setting the stage for a thought-provoking address that highlighted the importance of sound financial management practices for MSMEs.

Financial wisdom through timeless stories

Prof. Lartey illustrated his points through two compelling stories that offered practical lessons in financial resourcefulness. The first, drawn from the Bible, recalled an incident where Peter informed Jesus it was time to pay taxes, but they had no money. Instead of panicking, Jesus instructed Peter to go fishing, and from the mouth of the first fish he caught, they found a coin to cover their taxes.

According to Prof. Lartey, this story reflects how solutions can emerge from unexpected sources when one approaches financial challenges with creativity and purpose.

“Solutions can come from unexpected places when we have knowledge and act with purpose,” he noted.

The second story came from The Richest Man in Babylon, a classic text on financial wisdom, which chronicled the journey of Arkad, a man who became the wealthiest person in Babylon through disciplined savings, sound investments, and learning from failures.

Prof. Lartey used this story to drive home the importance of financial discipline, urging entrepreneurs to embrace similar practices. “Financial success is a product of wise planning, persistence, and learning from failures,” he emphasized.

The vital role of MSMEs in Ghana’s economy

Prof. Lartey’s address comes at a time when MSMEs are recognized as critical engines of Ghana’s economic growth. According to the Ministry of Trade and Industry, MSMEs make up 85% of all businesses in the country, contributing approximately 70% to Ghana’s Gross Domestic Product (GDP) and accounting for over 90% of private-sector employment. Despite their significant contributions, many MSMEs continue to face challenges, including limited access to finance, inadequate infrastructure, and a lack of financial literacy, which hinder their potential for growth.

 Prof. Lartey reminded MSME owners that while external factors such as financing are crucial, internal factors like sound financial management and disciplined decision-making are equally critical for long-term success.

“As entrepreneurs, your financial success depends on your ability to plan, manage resources, and make informed decisions consistently,” he advised.

Empowering MSMEs with practical knowledge

Prof. Lartey concluded his presentation by offering practical advice for MSMEs to enhance their financial stability. He outlined four key principles: knowledge, faith, resourcefulness, and financial discipline.

Understanding their businesses’ financial dynamics, seeking continuous learning and mentorship, and being creative in overcoming challenges are key, he explained. “As you grow your businesses, remember these lessons: have knowledge, faith, be resourceful, and above all, practice financial discipline. The path to success is paved with knowledge and action.”

The workshop also provided a platform for MSMEs to engage with key stakeholders, including representatives from financial institutions, business consultants, and government agencies.

The event aimed to empower entrepreneurs by offering practical tools and knowledge to help them overcome common financial hurdles, particularly in the areas of financial literacy and access to finance.

MSMEs as drivers of economic transformation

In recent years, the government of Ghana has launched several initiatives to support MSMEs as part of its industrial transformation agenda.

rograms such as the National Entrepreneurship and Innovation Programme (NEIP) and the Ghana Enterprises Agency (GEA) have been pivotal in providing financial support, training, and capacity-building programs to MSMEs across the country.

These initiatives aim to enhance the sector’s capacity to contribute even more significantly to national development.

Prof. Lartey urged MSMEs to capitalize on such opportunities while adopting practices that promote sustainability.

He encouraged entrepreneurs to explore funding options through partnerships with financial institutions like GCB Bank, but also emphasized the need for sound financial management within their operations. “The combination of external support and disciplined financial management will create a solid foundation for growth,” he noted.