Regulatory burden threatens SME growth, job creation – ILAPI study
The research, titled “Removing Business Regulatory Barriers for Economic Prosperity in Ghana,” examined the regulatory challenges facing businesses and their impact on economic growth.
A new study by the Institute for Liberty and Policy Innovation (ILAPI) reveals that Ghana's regulatory environment is hindering the growth of Micro, Small and Medium Enterprises (MSMEs), limiting their potential to create jobs and contribute to economic prosperity. The study, titled "Removing Business Regulatory Barriers for Economic Prosperity in Ghana," surveyed 600 MSMEs across the country between September 2024 and July 2025.
Key findings include lengthy registration processes, multiple regulatory requirements, and high compliance costs. ILAPI's Executive Director, Peter Bismark Kwofie, noted that 40.83% of respondents experienced registration delays of over a month, while 22.83% faced delays of three to four weeks. The reliance on intermediaries known as "goro boys" was found to prolong the registration process, with 84% of respondents utilizing these intermediaries.
The study also found that 27% of businesses spend less than 5% of their capital on regulatory compliance, with this expenditure hindering business expansion and job creation. ILAPI recommends a unified digital registration and licensing platform to streamline compliance processes and reduce the burden on small businesses, particularly those seeking to grow and employ additional workers.
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