Don’t make funding your starting point for green businesses – Entrepreneurs urged

Young entrepreneurs in Ghana are being advised to prioritize finding solutions to genuine environmental concerns over securing funding as their initial focus. Michelle Prempeh Morrison, Programme Coordinator at Startup Discovery Africa, cautioned aspiring green business owners from becoming too preoccupied with obtaining grants or investments prior to confirming that their ideas address a real market need.

During the 12th edition of the Loud and Green X-Space, she emphasized the importance of identifying the problem to solve, understanding potential customers, and assessing market viability before considering external funding. "You build to solve real-life problems and real-life issues," she asserted. Morrison suggested that entrepreneurs dedicate the initial three months of their venture to testing and validating their ideas through pilot projects, customer feedback and refining their products or services based on market responses.

She warned against starting businesses solely due to the availability of funding opportunities, as having access to capital does not guarantee a viable business concept. She also encouraged young founders to broaden their networks beyond investors, highlighting the value of mentorship, customer relationships, government assistance, corporate support, distributors and other business connections, which can provide technical assistance, market access, mentorship and useful connections.

Networks can be just as crucial as funding, according to Morrison. She pointed out that some entrepreneurs may not necessarily require capital in the early stages of their businesses, instead needing guidance, customer feedback and market access to strengthen their business models. This discussion aimed to explore how Ghana's expanding green economy can generate jobs and sustainable livelihoods for young people amid high unemployment rates.

Speakers at the forum stressed that environmental challenges can be converted into business opportunities if young entrepreneurs identify issues within their communities and develop practical solutions. They urged budding founders to start small, test their ideas and demonstrate market demand before pursuing larger investments, as this approach could help create more sustainable green businesses while generating employment opportunities for young Ghanaians.