Small businesses could from May, this year approach the Ghana Stock Exchange to raise capital and support their operations.

This is because the GSE’s alternate market which seeks to empower small firms and start-ups with flexible listing requirements is set to begin trading.

Ekow Afedzie, Deputy Managing Director of the Ghana Stock Exchange, speaking to journalists in Accra, indicated that firms that want to list on the market must have a stated capital of GH¢250,000.

He said the start of the alternate market was kept on hold following his outfit’s delay in setting up the governing authority.

“We started speaking to some stakeholders and running workshops for potential targeted companies. What we are trying to do is to get one or two companies to start with. And there are a few ones that brokers are talking to. Even if we don’t get them to start working with, we will formally go ahead and announce the market.”

The new market, Mr Afedzie further explained, will accommodate companies at various stages of their development, including start-ups and existing enterprises, both small and medium.

“Listing on this market will afford companies the opportunity for securing long term capital, broaden their investor base and provide liquidity for their shareholders and investors.

“In addition to the above objects for listing, companies may enjoy other incentives including pre-Initial Public Offer (IPO) financing; underwriting; access to a revolving fund to support the cost of raising capital and deferment of up-front fees.”

Commercial banks, which are supposed to assist SMEs build their operational muscles, have shied away from them because the former are eyeing ‘bigger’ profits from lending to multinationals.

While they have refused to lend long term to companies, banks’ interest rates have also been exorbitant.

In many instances, SMEs are forced to go the direction of microfinance institutions, which have also sprang up alarmingly but charging throat-cutting interest or simply fold up.