Lack of planning, info access killing Ghanaian start-ups – Expert warns
Business development expert Albert Sarpong has identified the absence of structured planning and access to critical business information as key reasons why many Ghanaian start-ups struggle to survive.
According to data from the Registrar General’s Department, over 80 percent of businesses registered in Ghana fall within the small and medium scale enterprise (SME) category.
Despite this growth, sustainability remains a major challenge. Industry reports suggest that up to 75 percent of Ghanaian startups fail within their first three years of operation.
Key factors contributing to this trend include inadequate access to funding, limited mentorship opportunities, poor business planning, and weak regulatory compliance.
Speaking on Business Breakfast on ZED 101.9FM, Mr. Sarpong noted that a majority of start-ups are built on passion driven ideas without a clear long term strategy. He explained that while passion can be a useful catalyst, it often results in ventures being treated like hobby projects rather than serious business enterprises.
He stressed that the absence of mentorship and accessible information continues to affect the sustainability of start-ups. Many young entrepreneurs, he noted, lack guidance and foundational support during the business registration process, which often focuses solely on legal formalities. As a result, many discover regulatory obligations too late when the financial strain has already set in.
Mr. Sarpong explained that in many cases, critical information about compliance requirements and sector specific regulations is either unavailable or difficult to access. This gap leaves entrepreneurs to rely on trial and error, exposing their businesses to unnecessary risks.
“Due diligence is crucial but it would help significantly if relevant information were readily available from the beginning. That way, entrepreneurs can move forward with clarity and confidence,” he said.
Mr. Sarpong highlighted mentorship as a missing pillar in Ghana’s business culture. According to him, many entrepreneurs avoid seeking help out of fear that their ideas might be copied or stolen.
However, he maintained that learning from experienced professionals is essential for growth.
“Mentorship allows you to benefit from the experience of those who have already navigated the system. It’s not about copying; it’s about learning how to do things right,” the business development expert explained.
Mr. Sarpong urged entrepreneurs to think beyond the local market and explore broader opportunities across the African continent. Limiting a business vision to cities like Accra, Kumasi, and Cape Coast, he argued, restricts growth potential. He also pointed to rural areas as untapped markets with enormous business possibilities.
He concluded that Ghana’s business ecosystem must foster a culture of information sharing, mentorship, and strategic growth to reduce startupfailure rates and encourage long term success.
