What It Takes to Build a Business in Ghana Today
By Jasmine
Accra, Ghana — On a humid Tuesday afternoon, 29-year-old fashion designer Sheila Ofori sits at her compact sewing table in Osu, surrounded by bright fabrics, thread, and unfinished garments. She’s been running her boutique for four years — and every day, she says, feels like starting from scratch.
“People think owning a business is glamorous,” she says, adjusting her glasses. “But they don’t see the sleepless nights, the rent increases, the electricity outages, and the taxes.”
Sheila is part of Ghana’s growing small business community, which contributes more than 70% to the nation’s GDP and employs about 80% of the workforce, according to the Ghana Enterprises Agency. But for many entrepreneurs like her, the journey is a maze of red tape, rising costs, and uncertain demand.
Starting Small, Dreaming Big
Many Ghanaian entrepreneurs launch their ventures from necessity rather than opportunity. With youth unemployment hovering around 12% officially — and likely higher in informal metrics — many graduates and skilled workers are turning to self-employment.
“I never imagined I’d be selling pastries on Instagram,” said 24-year-old Clement Asare, a former marketing student. “But after sending out over 50 job applications with no response, I decided to start baking from my mother’s kitchen.”
Today, Clement earns nearly ₵3,000 a month, though most of it goes back into restocking ingredients and equipment.
Access to Capital: The Eternal Struggle
One of the biggest hurdles for Ghanaian startups is funding. Traditional banks often require collateral that young entrepreneurs don’t have — and interest rates can soar above 30%.
“I applied for a loan and was asked to provide land documents and a car,” said Sheila. “If I had those, would I even need a loan?”
In response, a growing number of entrepreneurs are turning to savings groups, peer-to-peer lending platforms, and mobile money-based microloans. However, these often come with low ceilings and high repayment pressure.
Some international organizations, like the Mastercard Foundation and GIZ, have stepped in with grant programs and incubator support. But access remains limited.
Navigating Red Tape
For formal businesses, registration and compliance can be a daunting task.
“Registering my business at the Registrar General’s Department took me three weeks,” said Fred Mensah, owner of a tech repair shop in Kumasi. “Then I had to register for taxes with the GRA, get a business operating permit from the municipal office, and pay the fire service to inspect my place.”
Even informal businesses are not spared — market vendors often pay daily tolls, sanitation levies, and “unofficial fees” to local collectors.
Electricity, Rent, and the Daily Grind
High operational costs further choke many startups.
Electricity, which is both expensive and unstable, is a top concern. “I’ve lost orders because of power cuts,” said Sheila. “My sewing machines don’t run on vibes.”
Rental costs, particularly in prime urban areas, have also skyrocketed. In some areas of Accra, shop spaces as small as 12 square meters go for over ₵2,000 a month.
Digital Presence: A Double-Edged Sword
For some, social media has become the great equalizer. Platforms like Instagram, TikTok, and Facebook have allowed small businesses to showcase their work to larger audiences without paying for expensive shopfronts.
“Without WhatsApp and Instagram, I’d have no customers,” said Clement. “But it’s also exhausting — you’re the chef, marketer, customer service rep, and delivery guy.”
Many entrepreneurs work seven days a week, manually handling orders, replying to messages, and coordinating delivery riders.
The Support System That Keeps Them Going
Despite the chaos, many entrepreneurs credit their survival to family, friends, and faith.
Sheila’s parents helped her pay her first shop rent. Clement’s sister manages his social media when he’s overwhelmed. Fred shares tools with a nearby technician to cut costs.
“I can’t count how many times I wanted to give up,” said Sheila. “But every time someone tells me they love their dress, it reminds me why I started.”
Government Promises vs. Ground Realities
The Ghanaian government has repeatedly pledged to support MSMEs (Micro, Small and Medium Enterprises). Initiatives like the YouStart program, NEIP (National Entrepreneurship and Innovation Programme), and MASLOC loans have made headlines.
However, many business owners say they’ve seen little benefit.
“I registered for YouStart,” said Fred. “I even went for the training. But till today, no funds. Just certificates.”
Experts suggest that while the intentions are good, poor targeting, bureaucracy, and political filtering slow implementation.
Rising Above: Stories of Resilience
Amid all these challenges, success stories still emerge.
27-year-old Amina Sule started selling shea butter mixtures from her kitchen in Tamale. Today, her products are stocked in boutique stores in Accra and exported to the UK.
“My advice? Start small but dream global,” she said. “Use what you have. Don’t wait for perfect.”
A Nation of Builders
What it takes to build a business in Ghana today is not just capital or talent — it’s grit, flexibility, and a relentless spirit. For every frustrated entrepreneur, there’s a spark of hope, a satisfied customer, or a new sale notification that keeps them going.
As Sheila threads another bobbin and prepares for her next client, she smiles, tired but unshaken.
“Every stitch, every challenge, it’s all part of the journey,” she said. “And I’m still sewing.”