GOING INTO ENTREPRENEUR

LET'S TALK ABOUT WHO AN ENTREPRENEUR IS.

An Entrepreneur is someone who starts or runs a business with the sole aim of making money or profit. Such examples include store-keepers, druggists, Shoe sellers, etc.

An enterprise is a business unit that is established to render a service or produce goods for consumers. Enterprises are either owned privately or by the state.

1. State Owned Enterprises or Public enterprises are an organization that is owned and managed by the state like the Electricity Company of Ghana (ECG), Ghana Water Company (GWC), Ghana Broadcasting Corporation (GBC), State Transport Corporation (STC), Tema Oil Refinery, State Housing Company (SHC), Ghana Commercial Bank (GCB), Pwalungu Tomatoes Factory, Ghana Ports and harbor authority (GHAPOHA), etc.

2. Private Enterprises are enterprises established and controlled by private individuals such as Darko Farms, Afriwaa Farms, Mobile Telecommunications Network (MTN), Zenith Bank, Akosombo Textile Limited (ATL), Kasapreko Company Ltd., Malcolm, Lava, White chapel, Mankwadze Fisheries,

TYPES OF ENTERPRISES IN GHANA

There are different types of enterprises in Ghana. These enterprises are as follows:

1. Sole Proprietorship

2. Partnerships

3. Co-operatives

4. Joint Stock Companies (Limited and Unlimited Liability Companies)

A sole proprietorship is a business venture owned and managed by one person. The sole proprietorship or enterprise is the commonest and oldest form of business enterprise. It is also called a one-man business. Businesses that fall under sole enterprise include hairdressers kenkey sellers, retail shop owners, fast food restaurants, butchers, and shoemakers. They take sole responsibility for the business and provide capital to run the business themselves.

-Easy to establish: The process and procedures involved in establishing a sole proprietorship are less difficult as compared to public corporations and joint-stock companies. The owner can start the business with a small amount of capital and with very few legal formalities.

• Owner Enjoys all Profits: Profits accrued from this business belong to the proprietor. He does not have to share his profits with anybody; he enjoys it alone.

• Enjoyment of Privacy: The sole trader is not required to publish his accounts for everybody to know the profit that he is making. Since he takes all decisions and controls the business alone, important information and other trade secrets are safeguarded, because he is under no obligation to inform anybody about these pieces of information.

• Ensures Quick Decision-Making: The owner takes all decisions and is not obliged to consult anybody before arriving at them. He is his boss and takes decisions on all issues at any time. Since he consults no one, quick decisions can easily be taken to deal with unforeseen circumstances and other emergencies

• Self-interest of the Owner: Lastly, because the business belongs to one person who

enjoys all the profits arising from the organization, and he has special interest in what goes on in the business. The ability of the business to make profits depends on the hard work of the owner and his employees.

• Unlimited liability: This means that the proprietor is legally responsible for all debts of the business. It also means that, if the business should run into debt, he can be sued and his personal belongings sold to defray the cost.

• Owner bears all the Risks: The sole proprietor is faced with the task of bearing the problems, risks, and misfortunes of the business alone.

-Insufficient Capital: The ability of a sole proprietor to expand the business or enlarge his capital base is limited. He cannot float shares in the open market or on a stock exchange. His capital is limited to profits he has plowed back into the business as well as his savings.

• Lack of continuity: Most sole proprietorships also close down if the owner dies or runs out of capital, or when there is mismanagement by the owner.

• Role overburdened: Since the sole proprietor is the only person who is responsible for taking all important decisions and management of the business, he may be overburdened.

It is a type of business where two or more people pull their resources together to start a business as co-owners, with the view of making a profit. It is common to see people in similar professions coming together to form partnerships. Both partners contribute the needed capital for the running of the business.
There are two main types of partnership. These are

• Limited Partnership: This is a type of partnership in which at least, one of the partners enjoys limited liability. It means, that partner's assets cannot be sold to defray the cost of settling the debt in case the business is involved in debt. That partner is called a dormant or sleeping or silent partner because he does not take part in the day-to-day running of the business.

• Ordinary Partnership: In the case of the ordinary partnership, all the partners take an active part in the running of the business. They take decisions together and they both are unable to pay off their debts, the personal properties of the partners can be sold to pay off the debts. They are called active or general partners because they play an active role in the business.

• Huge capital investment: The state owns those enterprises which require huge capital to set up which cannot be financed by private enterprises e.g. E.C.G, Ghana Water Company.

• Provision of affordable prices: The state can provide essential services such as the provision of water, health, and education at affordable prices for the majority of Ghanaians. If these essential services are given to private operators, the majority of Ghanaians may not be able to afford them.

• To employ the people: Companies like Ghana Ports and Habour Authority (GHAPOHA), and COCOBOARD are a state-owned enterprise that offers employment to most people.

• To raise revenue: The State also owns businesses to be able to raise revenue to support the economy e.g. Internal Revenue Service (IRS), and Value Added Tax (VAT) help to raise revenue for the government.

• To distribute economic development equally: State-owned enterprises are set up to ensure equal distribution of resources across the country. Such distribution is done through offices of the Regional Development Corporation throughout all the regions of the country.

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@nattybongo
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