Government helps entrepreneurs grow and grow their businesses through Youstart

Accra, Wednesday, January 26, 2022 – The Minister of Finance, Mr. Ken Ofori-Atta has assured Ghanaian youth of the government’s continued support through the YouStart initiative.
“For those with business ideas, we will provide you with the necessary support and guidance through YouStart to grow and grow your businesses,” Mr. Ofori-Atta said.

The YouStart initiative, under the Ghana CARES program, is introduced to ease the constraints of existing and potential young entrepreneurs.

Mr. Ofori-Atta made this clear when he addressed young people at the 73rd Annual New Year Schools Conference under the theme of the session: “Building a Sustainable Entrepreneurial State: Government Policy to Harness our demographic dividend”.
He said empowering young people who were a driving force for change was a key part of the government’s plan.

He stressed that the initiative would ensure that skills training is much better aligned with the needs of sectors as drivers of future productivity growth and socio-economic transformation.

The YouStart initiative, as featured in the 2022 annual budget, would support youth-led businesses with concessional loans of up to GH¢50,000 to help start-ups (particularly by young graduates and young graduates) and small businesses to develop, start-up packs (Subsidized loans linked to the acquisition of equipment) up to 50,000 GH¢ for individuals and 100,000 GH¢ for associations and groups and a set of standardized loans between 100,000 GH¢ and 400,000 GH¢ at preferential rates for SMEs from financial institutions.

“For those looking to enter the private sector, we will leverage the CARES program to ensure you have the skills, training, network and credits needed to support the transition from “classroom to workplace.” “.

He noted that based on available data from the Ghana Statistical Service, 11.5 million people were considered economically active and of these, 1.5 million people were unemployed.
The unemployment rate among the population aged 15 and over was estimated at 13.4% and was higher among women (15.5%) than among men (11.6%). Among the population aged 15-35, the unemployment rate was 19.7% and is even much higher among young adults aged 15-24 (32.8%).

“Imagine this, in 2020 there were just over 547,000 students enrolled in higher education. We can assume that 100,000 of this cohort completed their studies last year. 12. Based on statistics from the unemployment of young adults (15-24), we can estimate that of these 100,000 young people, around 32,000 are unemployed at home,” he added.
The minister called the situation “unacceptable” and revealed that the government had responded with a plan with a clear objective: “to reap the benefits of our demographic dividend by building an entrepreneurial state”.
According to him, building a sustainable entrepreneurial state can solve our problem of youth unemployment by strengthening the links between education and labor market actors, providing access to finance, skills and markets for our young entrepreneurs, by resourcing state institutions to support the ambitions of those who want to pursue entrepreneurship and increase the capacity of the private sector to create jobs.
Mr. Ofori Atta highlighted the importance of e-Levy as it is intrinsically linked to the YouStart initiative.
He said: “We see the E-Levy as an essential tool to increase our GDP tax from around 13% to 16% and more, which would ensure that we have the revenue to sustainably invest in entrepreneurship, youth employment, cybersecurity, digital and road infrastructure,” adding that the e-Levy also provides a means for all Ghanaians to help sustain their country and grow this economy as compliant citizens.
He also revealed that Ghana’s success in entrepreneurship will help it take advantage of the African Continental Free Trade Area (AfCFTA) and seize the opportunities it presents.
“Africa in 2050 will have a combined GDP of $7 trillion with $5.6 trillion in trade opportunities by 2025. In addition, consumer spending growth in Africa is expected to reach $2.1 trillion. by 2025 and $2.5 trillion by 2030,” he said.
The minister advised young people to pursue entrepreneurial careers as this would contribute to the development of an enterprising nation, which remains the government’s vision. TO FINISH

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