The Chief Executive Officer of the CEOs Executive Network Limited, Ernest De-Graft Egyir, has lamented the failure rate of Small and Medium Enterprises (SMEs); majority of which do not survive beyond five years.

He attributed this to the sector not being widely recognized by policymakers to provide the right support to the sector.

SMEs, it is estimated, contribute 92 percent of operational business and 70 percent of the country’s gross domestic product (GDP).

Egyir said the recent failure of a number of indigenous banks; the shutdown by regulators of some microfinance institutions; and the takeover of the country’s premier mortgage finance institution, is due to the lack of good corporate governance culture.

He noted that the ‘’laissez-faire’’ attitude of most individual shareholders, active engagement and involvement of institutional investors is critical in shaping the governance culture for local companies to thrive.

Speaking at the launch of the second edition of the Ghana SME and Young CEO Summit in Accra, De-Graft Egyir reiterated the value of a strong SME sector in fostering a broad-based inclusive growth.

‘’Promoting local SMEs is the most effective and sustainable solution for creating an inclusive growth. SMEs in general comprise the majority of firms and the largest employer in the world’’

‘’The SME sector is the economic fly-wheel of Ghana and it must begin to turn,’’ he added.

Mr. Patrick Fiscian, Chief Executive Officer of the Heritage Bank said SMEs must embed its code of business principles and deploy more energy and intense efforts in reviewing its weekly, monthly and yearly governance performance.

He stressed the need for SMEs to cultivate a wider and well segmented use of technological software to track sales, attract more customers, analyze revenue, outflows and make projections.

Mr Yeo Ziobeieton, Managing Director, Unilever Ghana on his part advised young entrepreneurs and leaders to adhere to good corporate governance as a top agenda in operating in the SME space.

‘’How you grow as an SME is equally important in building an image that guarantees continuity and you need to understand your existence in contributing to the livelihood of millions.’’

The Ghana SME and Young CEO Summit is slated for November 26, 2018 at the Kempenski Gold Coast Hotel in Accra.

The theme for the summit is ‘’Corporate Leadership Governance & Technology: Strong Pillars for Business and Economic Growth’’

The Summit will adopt panels, plenary sessions and open fora to discuss government policies, legislations, new projects and also challenges of the SME sector.

An Expo component of the summit will also take place to allow sponsors, exhibitors and visitors alike to forge new business opportunities and showcase their products.