Local businesses, especially the small and medium enterprises (SMEs), have been challenged to be prudent in managing their finances for sustainability and growth of the private sector.

“You just do not wake up and take money from your business without any proper account -- how can one invest in business without proper record-keeping?” Mrs. Joyce Boakye Manager at the Listing Department of Ghana Alternative Market (GAX) has said.

In business, she said, if the individual is transparent and discloses vital information it will encourage people to invest in the business -- since you will be held accountable, you will always do the right thing.

Mrs. Boakye said this at a forum organised by the Sekondi-Takoradi branch of the Ghana National Chamber of Commerce (GNCC) in Takoradi.

The forum is for members of the chamber to understand the alternative way of raising capital in supporting their businesses to grow.

In a presentation on GAX, she explained that before a company is listed on the market, it has to be more than three years in existence to make it possible for investors to know the company’s performance over the years, as well as have audited accounts which are filed.

Also, she said, if a sole proprietor business becomes a public limited liability, it becomes easier for investors to come on board.

According to her, GAX helps in such processes for a company to be listed on the market -- at least 50% of the board must be composed of non-executive directors, and at least one or approximately 25% of the total must be independent.

She further explained that approval processes to be on the GAX have been shortened -- the moment your company is listed on the market you will get a lot of investors, and this makes you put the right structures in place.

“If your businesses prosper, you will be able to increase your workforce and the economy will grow as well,” she said.

Mr. Philip Kobina Abodoh, GAX Officer at the Ghana Stock Exchange (GSE), added that before a company gets listed on the market it should have a minimum stated capital of GH?250,000 at the time of listing.

“If you need to bring your company onto the stock market, you need to talk to the licenced dealing members or investment advisors -- you really need to prepare yourself before your company is listed on the market,” he added.

Mr. Stephan Miezan, Chairman of the Sekondi-Takoradi branch of GNCC, explained that the forum was for members to prepare themselves when they want to raise capital for their business.

Also, it is to give the understanding members require to get their companies listed on the market; as well as build their capacities.

“Raising capital from the universal banks has been very difficult, and this does not help businesses to grow -- I believe most of us will take advantage of explanations about the opportunities of being listed on the market to come on board.”