Business News of Friday, 6 March 2015
Small and Medium Enterprises have been advised to venture into the construction and agriculture sectors as a means of safeguarding their capital and staying in business.
According to the Head of Risk Management at Union Savings and Loans, Stephen Avornyoh, this has become even more crucial as the government prepares to adopt strict measures by the IMF.
He spoke with JOY BUSINESS at his company’s 8th SME Clinic session under the theme: the implications of the 2015 macroeconomic indicators for businesses.
“When government spends, it drives businesses for those in the private sector – government is the largest spender. If government decides not to spend business in the private sector will have lean growth. Businesses will then have to look out for those sectors that have growth drivers in them and critical among them is the construction sector.
“The middle class is growing so people are trying to find avenues to acquire mortgages and to have homes of their own hence, the growth in the real estate sector. The other bit is the agricultural sector specifically the crop sector because so it is important that businesses that are focused on the agricultural sector will channel their efforts into the growth area, and those in the industry sector will focus a little more on the construction sector” he said.
The Union SME Clinic is a monthly initiative which seeks to offer business solutions to Micro, Small and Medium-Scale Enterprises. The package forms part of his outfit’s philosophy of successfully combining commercial objectives with a strong development agenda by focusing on segments of the market that lacked the needed attention and expertise from the “regular” financial services sector.