Mr. Ralph Osei Ameyaw, Executive Secretary, Council for Indigenous Businesses Association (CIBA), on Tuesday told workers in the informal sector that one of the surest ways of securing loans from the financial institutions to revamp their businesses was to understand the culture of savings.
Mr. Ameyaw has therefore urged workers to save with banks so that they could procure the needed capital for their businesses.
He noted that some workers in the informal sector did not save but would want to apply for loans saying that did not form part of the regulations with the banks.
"If you don't save in any of the banks how can you procure a loan for your business? You need to save with banks so that they can also help you," he said.
Mr. Ameyaw was speaking at a three-day national dialogue with financial institutions and other stakeholders on the challenges facing Small Medium Enterprises SME.
Organized by the Ghana National Tailors and Dressmakers Association (GNTDA), Maamobi Zone in the Greater Accra Region in collaboration with Business Advocacy (BUSAC) Fund, the dialogue is under the theme: "Creation of special Loans Schemes for Members."
Mr Ameyaw cited lack of record keeping and development of business plans as wells as non-adherence to job ethics as some problems confronting SMEs and emphasized the need for members to address them.
"You should also develop workable business plans that help you reap benefits to pay off your loans," he said.
He announced the CIBA would from next year establish an Endowment Fund that would support members with loans adding that the fund would be regulated by the executive members of the various associations.
According to him, CIBA had therefore embarked on a pilot programme in Koforidua pointing out that, it was yielding good results.
He said in Ghana the informal sector constituted about 80 per cent of the population hence the need for them to form a "united force" championing the cause of its members.
The Executive Secretary was worried about the influx of cheap textiles and urged members to come out with quality products which could withstand competition on the job market.
He said CIBA has procured machines for members and urged them to work to acquire them for their businesses.
Mr Ameyew also addressed members on the Social Security and National Insurance Trust and the National Health Insurance Scheme urged them to join the schemes in order to enjoy their benefits.
Ms Gifty Titriku, Business Customer Adviser, Barclays Bank, called on GNTDA to register their businesses and open accounts with banks so that they could procure loans.
Ms Titriku said her bank was committed to ensure the growth of SMEs and advised members to join the bank's Business Club and create a network among members.
She further appealed to members to use loans for the purpose for which they were procured.
"Use the loans for the intended purpose, don't misuse them," she cautioned.
MsTitriku said her bank did not require any collateral on loans below 5,000 Ghana cedis and asked them to pay back the loans on time so that other people could also benefit.
Mr. Edward G. Afrifah of the President's Special Initiative on Garments and Textiles urged members to set up "classy standards" in their handiworks in order to compete with foreign products on the international market.
He reminded members that the President's Special Initiative on Garments and Textiles was offering free training programmes to dressmakers and tailors and urged them to take part in the programme.
Mr. Nelson Nyadror Adanuti, a Service Provider, in charge GNTDA/BUSAC Advocacy Project, said a United Nations study indicated that there was a huge potential in Africa's Creative Industries in terms of promoting economic growth and development.
"We should never underestimate that potential by allowing cheap imports from elsewhere to take over our businesses," he said.