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GhanaENTREPRENEURIAL ECOSYSTEM SNAPSHOT

W E S T A F R I C AWITH SUPPORT

FROM

Accra

GHANA

Ghana ENTREPRENEURIAL ECOSYSTEM SNAPSHOT

Though it is one of the largest economies in West Africa, a variety of gaps pervade Ghana’s entrepreneurial ecosystem. Some of these gaps include: a lack of collaboration among actors, lack of access to relevant information, mismatches in investment size supply and demand, poor access to markets, excessive cost of physical infrastructure, and limited access to finance. Despite these challenges, the small and growing business (SGB) sector is actively driving the economy. According to Ghanaian government data, small and medium-sized businesses account for 70 percent of Ghana’s gross domestic product.

The Aspen Network of Development Entrepreneurs (ANDE) conducted this entrepreneurial ecosystem snapshot to identify organizations that actively support entrepreneurs in Ghana and the kind of support they provide. These organizations include: investors, capacity development providers, business development support providers, professional service providers, government agencies, and others.

ANDE first carried out an entrepreneurial ecosystem snapshot that focused on Accra in 2017. This update expands on the work done in Ghana’s capital city to include an overview of the entrepreneurial ecosystem in ten regions in Ghana.

This snapshot shows that organizations that support entrepreneurs in Ghana primarily focus on agriculture. The top impact objective is typically capacity development. The most-used financial instrument in the ecosystem is equity and the top nonfinancial support available in Ghana is access to networks and partners.

W E S T A F R I C A

METHODOLOGY

Review of Existing Literature

Surveys and Interviews

Stakeholder Meetings

To see more data and findings, see the digital version of ANDE’s Ecosystem Snapshots at:ecosystems.andeglobal.org

http://ir.knust.edu.gh/bitstream/123456789/4837/1/Sydney Hayford.pdf

http://ir.knust.edu.gh/bitstream/123456789/4837/1/Sydney Hayford.pdf

http://ecosystems.andeglobal.org

GHANA | Entrepreneurial Ecosystem Snapshot | 2018

SUMMARY

2

70+30+J

OF SURVEY RESPONDENTS FOCUS ON AGRICULTURE & FOOD

OF SURVEY RESPONDENTS FOCUS ON ACCESS TO NETWORKS AND PARTNERS

OF SURVEY RESPONDENTS FOCUS ON AGTECH

OF SURVEY RESPONDENTS PROVIDE EQUITY

NON-FINANCIAL SUPPORT PROVIDERS

153 91

FINANCIAL SUPPORT PROVIDERS

6

OTHER ECOSYSTEM SUPPORT PROVIDERS

TOP SECTOR OF FOCUS

NON-FINANCIAL SUPPORT

TOP VERTICALS

TOP FINANCIAL INSTRUMENT

56+44+J56%

70% 63+37+J72+28+J72%

63%

+5+1+2+26+30+41+43+64+100+100+100+100+100+100+100+100GHANA | Entrepreneurial Ecosystem Snapshot | 2018

DATA

3

Intervention Type

Investment Instrument

Equity (43)

Debt (27)

Guarantees (3)

Quasi-Equity (28)

Grant (21)

64%

41%

31%

40%

4%

63%

26%

41%

1%

43%

2%

30%

5%

Promote and Educate About Entrepreneurship (117)

Conduct Research on the Sector (47)

Invest Directly (74)

Invest Through Other Funds or Intermediaries (2)

Provide Nonfinancial Services to Entrepreneurs Directly (78)

Invest into Funds (3)

Provide Financial Support to Intermediaries (55)

Other (9)

n=182

n=68

30+70+H 23+77+H 21+79+H 13+87+H 11+89+H70+30+H 67+33+H 64+36+H 39+61+H 32+68+H

11+89+H 11+89+H 8+92+H 8+92+H 7+93+H


3+97+H 1+99+H7+93+H 6+94+H 6+94+H 5+95+H 4+96+H

DATA

Access to Networks and Partners

(89)

Value/Supply Chain Development

(38)

Due Diligence (9)

Technology Development or Adoption

(14)

Product Certification

(4)

Business Strategy and Planning

(81)

Building HR Capacity

(27)

Sector Development

(8)

Performance Management

(10)

Leadership Development

(85)

Ideation (29)

Building M&E Capacity

(8)

Needs Assessment (14)

Other (1)

Investor Matchmaking

(49)

Legal, Accounting, Other Office Services

(17)

Media Exposure (6)

Investor Showcases (10)

Financial management

(41)

Marketing Support or Market Research

(14)

Exit Strategies (5)

Governance Structure

(9)

70%

30%

7%

11%

3%

64%

21%

6%

8%

67%

23%

6%

11%

1%

39%

13%

5%

8%

32%

11%

4%

7%

4

Nonfinancial Support

n=127

GHANA | Entrepreneurial Ecosystem Snapshot | 2018 5

DATANonfinancial Support Delivery Mechanism

Stakeholder or Business Model Focus

Youth Entrepreneurs (79)

Base of the Pyramid (31)

Advocacy (49)

Rural Communities (28)

Accessibility (37)

Citizen Empowerment (24)

Urban Communities (20)

Resiliency/Climate Change (18)

Social Enterprise (65)

Gender Inclusion (30)

Science, Engineering or Invention Based Businesses (52)

Women Entrepreneurs (26)

57%

57%

45%

39%

25%

24%

21%

18%

14%

11%

1%

3%

59%

48%

39%

36%

27%

23%

8%

22%

6%

21%

19%

18%

5%

15%

2%

13%

1%

Franchising (11)

Ethical Sourcing (8)Minority or Previously Excluded Population (7)Refugees and Migration (3)

Business Reporting (1)

Classroom/Seminar Training (64)

Mentoring (64)

Direct Consulting Services (51)

Peer to Peer/Network-based Support (44)

Co-working Space (28)

Cohort or Group Support (27)

Fellowships (24)

Competitions/Prizes (20)

Talent Placement (16)

Seat on the Board (12)

Online/Mobile (1)

Other (3)

n=135

n=113


6%

4%

3%

3%

1%

6

DATAStakeholder Type

Sectors of Focus

Business Development Service Provider (35)Accelerator/Incubator (31)

Consultant (19)

Angel Investor (9)

Impact Investor (9)

Enterprise Development Services (6)

Venture Capital Fund (5)

Funder of Accelerators (3)

Crowdfunding (3)

Private Equity Fund (3)

Fund of Funds (2)

DFI/Multilateral (1)

n=172

n=56

Agriculture & Food (97)

Energy (38)

Sector Agnostic (53)

Environment (33)

Education (48)

Manufacturing (24)

Supply Chain Services (22)Infrastructure/Facilities Development (22)

Information and Communication Technology (59)

Health (34)

Financial Services (50)

Water & Sanitation (25)

Wholesale and Retail Trade (15)

Hospitality/Travel/Tourism (14)

Logistics & Distribution (12)

Artisanal (12)

Media & Entertainment (11)

Housing and Community Development (14)Transportation (12)

Forestry (6)Minority/Previously Excluded Population (5)Microfinance (2)

Fair Trade (10)

Land Conservation (7)

63%

55%

34%

16%

16%

11%

9%

5%

5%

5%

4%

2%

56%

34%

31%

29%

28%

22%

9%

20%

8%

19%

8%

15%

7%

14%

7%

13%

7%

13%

6%


DATA

Verticals

AgTech (21)

FinTech (13)

Software as a Service (SaaS) (12)

E-commerce (10)

CleanTech (9)

EdTech (9)

Data Analytics (8)

Hardware (5)

Biotech (3)

n=29

72%

45%

41%

34%

31%

31%

28%

17%

10%

7%

5%

2%

2%

2%

Impact Objective

Capacity Building (38)

Equality and Empowerment (19)

Employment Generation (31)

Access to Information (14)

Income/Productivity Growth (21)

Access to Clean Water and Sanitation (10)Energy and Fuel Efficiency (10)

Access to Education (10)

Access to Financial Services (34)

Community Development (17)

Agricultural Productivity (21)

Food Security and Nutrition (13)

Health Improvement (8)

Sustainable Energy (8)

Sustainable Land Use (6)Pollution Prevention & Waste management (6)Water Resources Management (5)

Affordable Housing (8)

Access to Energy (7)

Conflict Resolution (1)Human Rights Protection or Expansion (1)Disease-specific Prevention and mitigation (1)

Natural Resources Conservation (4)Generating Funds for Charitable Giving (3)

62%

56%

51%

34%

34%

31%

13%

28%

13%

23%

13%

21%

11%

16%

10%

16%

10%

16%

8%

n=61


STAGES OF SUPPORT

IDEA EARLYSTART UP GROWTH MATURE

Academic Institution

Ashesi Design Lab (Ashesi University College)

Catholic Institute of Business and Technology (CIBT) Education Program (Catholic Institute of Business and Technology)

Consultancy and Business Incubation Centre (Kumasi Technical University)

Digital Innovation Hub (Ho Node)

GIMPA Center for Impact Investing (GCII) (GIMPA Center for Impact Investing (GCII))

Kumasi Business Incubator (Kwame Nkrumah University of Science and Technology)

Methodist University Business School (Methodist University)

Seed Transformation Program in West Africa (Stanford Seed)

Vocational Agriculture and permaculture design (Kumasi Institute of Tropical Agriculture (KITA))

8

KINDS OF SUPPORT EQUITY QUASI-EQUITY DEBT GRANT GUARANTEES


KINDS OF SUPPORT


EQUITY QUASI-EQUITY DEBT GRANT GUARANTEES


Capacity Development Provider

Bank or Financial Institution

Access Bank (Access Bank)

Entrepreneurship and Business Skills Training (International Financial Services Limited)

Premium Bank SMEs Support (Premium Bank)

SDC Capital (Securities Discount Company (SDC))

AABN Business Advisory Services (Africa Aurora Business Network)

Advisory and Consulting Service (MBC Africa)

Africa Atlantic Agricultural Efficiency Program (Africa Atlantic)

Africa’s Young Entrepreneurs (Africa’s Young Entrepreneurs)

AfricSeed Online Investment Platform (MBC Africa)

Afrilabs Annual Gathering (AfriLabs)


KINDS OF SUPPORT



Agribusiness Development (Ghana Agribusiness Centre)

Agro-Processing and Technology Business Incubator of Ghana (GHATBI)

AKO Capital (AKO Foundation)

Angel Investors Network (Ghana Angel Investors Network)

AV Ventures (ACDI/VOCA)

Business Accelerator and Impact Investment (InnoHub)

Busy Queen Customized Capacity Development Program for Women (Busy Queen Global)

CCLEAr Agri-Business Incubator (Creating Champions in Livestock Agri-Business (CCLEAr))

Cherie Blair Foundation (Cherie Blair Foundation for Women)

Climate Innovation Program (Ghana Ghana Climate Innovation Center)

Co-working Space (Horizon)

Co-working Space for Entrepreneurs (Workshed Africa)

Community Enterprise Propeller (Enterprise Development Hub)

Digital Innovation Program (Impact Hub)



KINDS OF SUPPORT



Djondo Fellowship (Djondo Fellowship)

Eco-Entrepreneurship Mentoring (Grassroots Hub)

Elevate Ghana (CREATE Ghana)

Employment for Sustainable Development (Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH)

EMPRETEC Entrepreneurs Development Program (EMPRETEC Ghana)

Enablis Entrepreneurial Network (Enablis)

Engineers Without Borders Ventures (Engineers Without Borders Canada)

Entrepreneurship Incubator (Hopin Academy)

Entrepreneurship Training (Meltwater Entrepreneurial School of Technology (MEST))

Eqwip Hubs (Eqwip Hubs)

Ernst and Young Advisory Services (EY)

GCEEI Entrepreneurship Program (Ghana Centre for Entrepreneurship, Employment and Innovations (GCEEI))

Ghana Partnership for Education: Learning (FHI 360)

Ghana’s Young Entrepreneurs (GYE) Program (Ghana’s Young Entrepreneurs (GYE))



KINDS OF SUPPORT



Global Alliance for Clean Cookstoves (Global Alliance for Clean Cookstoves)

Global Inclusive Business Community (Inclusive Business Action Network (IBAN))

Hatched Incubation (hapaSpace)

Heifer International Entrepreneurship Support (Heifer International)

HR Outsourcing and Training Service (Enterprise Development Hub)

i-hub + traction (African Entrepreneurs Hub)

IAC Accelerator Programme (MDF West Africa)

IBA Hub (MDF Training and Consultancy)

Inclusive Business Accelerator (The Inclusive Business Accelerator)

Incubating Incubators for Jobs and Wealth Creation in Africa (Africa Agribusiness Incubators Network)

Intelligent Capital Entrepreneurship Fellowship (Intelligent Capital)

Intelligent Capital Webinar Series (Intelligent Capital)

Internship Program (Africa Internship Academy)

Interpay Challenge Awards (Interpay Africa)



KINDS OF SUPPORT



Kumasi Entrepreneurs Monthly Meetups (hapaSpace)

Leadership Development and Empowerment (Global Alliance for Youth Leaders (GAYL))

Make-IT Africa (Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH)

Market Access (Christian Aid)

Market Development for Northern Ghana (MADE Ghana)

MBC Business Academy (MBC Africa)

Mentorship for Small and Medium Agro-Enterprises (African Agribusiness Incubators Network)

MyBusiness Friday (African Entrepreneurs Hub)

National Entrepreneurship Innovation Plan (NEIP) (Government of Ghana (National Entrepreneurship and Innovation Plan))

Nexus Ghana Community (Nexus Ghana)

Office Spaces (Regus Accra)

OutPost Co-working Space (OutPost)

Partnership and Capacity Strengthning (Catholic Relief Service)

PUM Incubator Program (PUM Netherlands Senior Experts)



KINDS OF SUPPORT



Reach for Change Africa (Reach for Change Africa)

Rural Enterprise Development Institute (MBC Africa)

Samakose Community of Trust (Samakose Enterprising Development)

Samakose Spectrum (Samakose Enterprising Development)

ServLed Investment Readiness Program (ServLed Africa Limited)

Small & Growing Business Fund (World Vision)

SME Funding and Advisory (AmDeCo)

Solidaridad Network (Solidaridad Network)

Talents for Humanity (Talents for Humanity)

Technical Support Program (Partners in Food Solutions)

Technology Capacity Building (Mobile Web Ghana)

TechnoServe Enterprise Support (TechnoServe Inc.)

Tentmaker Ghana Global Impact Drive (TG-GID) (Tentmaker Ghana Limited)

The Future Workforce Initiative (Kumasi Hive)



KINDS OF SUPPORT



TIC Hub (Takoradi Innovation Center (TIC))

Training and Research (Kofi Annan ICT Centre of Excellence)

Venture Capital for Africa Network (VC4Africa)

Water and Sanitation for the Urban Poor (WSUP) (Water and Sanitation for the Urban Poor)

Young African Leaders Initiative ((YALI) YALI Regional Leadership Center)

Young Community Innovators Program (Centre for Social Innovations)

Young Fellows Program (MBC Africa)

Youth Enterprise Support Program (Youth Enterprise Support Program)



KINDS OF SUPPORT



Airtel Business (Airtel Ghana)

Google Digital Skills (Google)

Microsoft SME Solutions (Microsoft Corporation)

MTN Enterprise Support (MTN Ghana)

Pathways to Progress (Citi Foundation)

PwC Tax and Advisory Service (PwC)

The MasterCard Foundation Program (The MasterCard Foundation)

Tigo Enterprise Support Program (Tigo Ghana)

Trade Enhancement in West Africa (Borderless Alliance)

Universal Merchant Bank Entreprise Support Program (Universal Merchant Bank)

Veterinary Business Advisory (Cowtribe Technology Ltd)

Vodaphone Entrepreneurship Challenge (Vodafone)

Corporation or Corporate Foundation


KINDS OF SUPPORT



Agriculture Finance (Agricultural Development Bank)

Boost Africa: Empowering Young African Entrepreneurs (African Development Bank)

British Council Programme (British Council)

Department for International Development (Department for International Development)

Entrepreneurship and Innovation (The World Bank)

Financing Ghanaian Agriculture Project (USAID-FinGAP) (U.S. Agency for International Development)

Grant Making and Technical Assistance (OSIWA)

International Finance Corporation (International Finance Corporation)

Development Finance Institution or Donor Agency


Foundation

AHLCF (AHL Venture Partners)

Ashoka Fellowship (Ashoka)


KINDS OF SUPPORT



Foundation

Ford Foundation Entrepreneurship Support Program (Ford Foundation)

iSpace Accelerator Program (iSpace Foundation)

Private Sector Policy (African Center For Economic Transformation)

Small Foundation (Small Foundation)

StartUpGh Foundation (StartUpGh Foundation)

The Rockefeller Foundation Program (The Rockefeller Foundation)

Tony Elumelu Entrepreneurship Program (TEEP) (The Tony Elumelu Foundation)

Unlocking Women and Technology (iSpace Foundation)

Agribusiness Support Program (Ministry of Foreign Affairs of Japan)

Bank of Ghana (Bank of Ghana)


Government Agency


KINDS OF SUPPORT



Investor

Accion Venture Lab Investment Initiative (Accion)

Acumen Fund Fellows Program (Acumen)

Adenia Capital IV (Adenia Partners)

Africa Media Venture Fund (Africa Media Venture Fund)

African Agriculture Fund (AAF) (DataBank AgriFund Manager)

Agricultural Fast Track Fund (Agriculture Fast Track Fund)

Business Sector Advocacy Challenge (BUSAC) Fund (Business Sector Advocacy Challenge (BUSAC) Fund)

Crystal Entrepreneurs Fund (Crystal Capital and Investments)

Digital Product and Services (Grameen Foundation)

Early-Stage Investors Nework (African Business Angel Network Investor)

EchoVC Partners Investment (Echo VC Partners)

Emerging Capital Partners Private Equity (Emerging Capital Partners)

Fidelity Bank Ghana Limited (FBG) (Fidelity Investments)

Financing for Projects in Africa (Finance and Competence)


KINDS OF SUPPORT



Investor

Global Venture Capital Investments (Gold Venture Capital Limited)

Growth and Venture Capital (Oasis Capital)

HFC Fund Manager (HFC Investments)

I & P Impact Investing (Investisseurs & Partenaires)

Investing in Agriculture (Injaro Agricultural Capital Holdings Ltd.)

Investment in Farmers and Firms (West Africa Trade and Investment Hub)

JCS Impact Investing (JCS Investments)

Microfinance Services (Accion)

Oxfam in Ghana (Oxfam)

Palladium Impact Investing (Palladium - Impact Investing)

Private Equity Investing (African Capital Alliance)

Private Equity Investment (Ghana Capital Partners)

Root Capital Impact Investing (Root Capital)

Seedstar World (Seedstar World)


KINDS OF SUPPORT



Investor

SEM Capital Management (SEM Capital Management)

Serengeti Capital Investment (Serengeti Capital)

Singularity Investments (Singularity Investments)

Small and Growing Business (SGB) Fund (GroFin)

SMEs Funds (Venture Capital Trust Fund)

Supporting Emergent and Smallholder Farmers through Targeted Investments (AgDevCo)

Synergy Capital Manager (Synergy Capital Managers)

Union Capital Investment (Union Capital)

Wangara Capital (Wangara Capital)

World Vision Fund (Vision Fund International)


KINDS OF SUPPORT



Microfinance Institution

Business Loan (Impact Capital)


Research or Advisory Service Provider

Business Advisory (National Board for Small Scale Industries)

Business Building and Investment Facilitation (Growth Mosaic)

Business Growth Accelerator (Growth Mosaic)

Dalberg Advisors (Dalberg Global Development Advisors)

JPCANN Associates Limited Business Support (JPCANN Associates Limited)

Knowledge Management & Decision Support (KDS) (Forum for Agricultural Research in Africa)

KPMG Consulting (KPMG)

Pre-investment Advisory Support (Growth Mosaic)

Private Enterprise and Market Oriented Reform (Center for International Private Enterprise)


KINDS OF SUPPORT



Research or Advisory Service Provider

Sahel Capital Agribusiness Managers (Sahel Capital)

Silicon Accra (Silicon Accra)

Winners Solutions (Winners Solutions)


Sector Association

GSEN Learning Workshop (Global Social Entrepreneurship Network (GSEN))

Social Enterprise Ghana (Enterprise Sociale Ghana Limited)

Social Entrepreneurs Network (Social Enterprise Ghana Network)

Technology and Business Hubs Network (TBHN) (Technology and Business Hubs Network (TBHN))

The African Network of Entrepreneurs (The African Network of Entrepreneurs)

WorkReady (LeadAfrique International)


MAP

194 PROGRAMSprovide services in Greater Accra.

37 PROGRAMSprovide services in Northern.

31 PROGRAMSprovide services in Upper East.

29 PROGRAMSprovide services in Volta.

29 PROGRAMSprovide services in Eastern.

28 PROGRAMSprovide services in Upper West.

27 PROGRAMSprovide services in Bong Ahafo.

30 PROGRAMSprovide services in Western.

36 PROGRAMSprovide services in Ashanti.

26 PROGRAMSprovide services in Central.

Accra


CHALLENGES AND OPPORTUNITIES

CHALLENGES in the Ghanaian Entreprenurial

Ecosystem

Lack of collaboration among actors

Misalignment in investment size supply and demand

Fragile government institutions and policies that are not necessarily conducive to entrepreneurship

Lack of standardized business development support

Infrastructure deficit; excessive cost of physical infrastructure

Limited access to financial support

Low interest in consumption of local products by Ghanaians

Lack of trust in entrepreneurs to comply with the terms of investment

OPPORTUNITIES in the Ghanaian Entreprenurial

Ecosystem

Opportunities for actors to collaborate on projects aimed at building the ecosystem.

Increasing demand for smaller sized investments, such as those provided by angel investors.

Growing demand for affordable co-working spaces to bridge the infrastructure deficit.

Increasing demand for business accelerators.

The government is increasingly interested in collaborating with business and capacity development providers.


SUPPORTING ENTREPRENEURSAll ecosystem actors should deepen their support in regions of Ghana beyond major cities

LOWER BARRIERSThe government should consider making the cost and process of registering a business less cumbersome.

REALISTIC REQUIREMENTSDonors and grant providers must set realistic requirements to ensure maximum impact.

STANDARD TRAINING Intermediary organizations should provide more entrepreneurship education for current and aspiring entrepreneurs at multiple stages of growth.

RECOMMENDATIONS

For more information please contact the staff of ANDE’s West Africa Chapter:

OLATUNJI AJANIANDE West Africa Chapter [email protected]

JOSHUA ADEDEJIANDE West Africa Senior Program [email protected]

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