Taking bank loan to start business not advisable – Entrepreneurs
The Chief Executive Officer of Freight Connect Company Limited, Paul Jesse Mensah has admonished business holders to avoid borrowing from banks to start a business.
According to him, it might be difficult to refund if the business fails to succeed. Instead, he recommended borrowing from family members as the best option for a start up.
He said this during a conversation on Joy Prime’s morning show regarding whether entrepreneurship should be considered the best solution to unemployment in the country.
“Once you go into being an entrepreneur or employer, much is expected of you. Sometimes, you have to raise capital, and I always say that if you want to start a business, the best place to access capital is not the bank. You have to speak to family members and friends to see if they can support you with small money,” he explained to Roselyn Felli.
Meanwhile, the CEO has urged that one can take a bank loan to support the business when it has attained a stronger level and will be able to refund.
Asked if entrepreneurship is the way to combat unemployment, he said, “It’s one of the ways forward.” However, he thinks how to start is mostly a problem for some people, especially the youth.
He further indicated that the youth need to be encouraged and empowered to start their own businesses and become their own bosses, regardless of the challenges they may encounter.
Mr. Mensah also implored startups to initiate ideas according to their capabilities and available resources.
Also speaking on the show, the Chief Executive Officer of J’Karta GH, Okbell Bedwei Majdoub noted that a firm should be meticulously planned financially before it is established.
“I always say that in every business, you need to make sure that planning is done properly, especially from the finance side, where, as an entrepreneur, you need to separate your personal self from the business,” she said.
Source: Ghana News
