Young Ghanaians seeking to establish green businesses have been challenged to focus on solving real environmental problems rather than making access to funding their starting point.

Programme Coordinator at Startup Discovery Africa, Michelle Prempeh Morrison, says many aspiring entrepreneurs become overly focused on securing grants or investment before establishing whether their ideas address a genuine need in the market.

Speaking at the 12th edition of the Loud and Green X-Space, she urged young entrepreneurs to first identify the problem they want to solve, understand their potential customers, and assess whether there is a viable market for their products or services.

She said entrepreneurs must also determine how their businesses will generate revenue before turning their attention to securing external funding.

“You build to solve real-life problems and real-life issues,” she said.

Validate before seeking funding

Ms Prempeh Morrison recommended that entrepreneurs dedicate the first three months of a new venture largely to testing and validating their ideas.

This, she said, could involve running pilot projects, gathering feedback from potential customers and refining the product or service based on what the market says.

She cautioned young people against starting businesses simply because grants or other funding opportunities are available.

According to her, having access to funding does not necessarily mean an entrepreneur has identified a viable business opportunity.

She also encouraged young founders to build broad networks instead of concentrating solely on investors.

Mentors, customers, government institutions, corporate organisations, distributors and other businesses, she said, can provide valuable support through technical assistance, market access, mentorship and useful connections.

Networks can be as important as funding

Ms Prempeh Morrison noted that some entrepreneurs who repeatedly seek funding may not necessarily need capital at the early stages of their businesses.

In some cases, she said, what they need most is the right guidance, customer feedback and access to markets to strengthen their business models.

The discussion formed part of efforts to explore how Ghana’s growing green economy can create jobs and sustainable livelihoods for young people amid rising unemployment.

Speakers at the forum stressed that environmental challenges can be transformed into business opportunities if young entrepreneurs are able to identify problems within their communities and develop practical solutions.

They encouraged aspiring founders to start small, test their ideas and demonstrate demand before pursuing larger investments.

The approach, they argued, could help build more sustainable green businesses while creating employment opportunities for young Ghanaians.