As businesses usher in the new year, it is the perfect time for entrepreneurs to revisit their financial strategies, set realistic goals, and implement robust budget plans. Whether businesses are finalizing their budgets in January or using this period to refocus their financial outlook, proper planning ensures that they can transform aspirations into actionable steps and maintain control over their spending throughout the year.

One valuable tool that can guide this process is the Old Mutual Financial Services Monitor (OMFSM), which offers deep insights into the financial attitudes, perceptions, and behaviours of working Ghanaians, both in the formal and informal sectors.

 Rita Boateng, the Customer Service and Marketing Executive at Old Mutual Ghana, emphasizes that the OMFSM is unique because it aims to improve the financial wellbeing of Ghana and other key African countries. "This is aligned with Old Mutual’s purpose of becoming the first choice for customers to sustain, grow, and protect their prosperity throughout their lifetime," Boateng says.

Key findings from the OMFSM

The OMFSM focuses on urban and peri-urban working Ghanaians aged 25 to 59 years, earning at least GHS 1,000 monthly. The survey uncovers significant trends in the entrepreneurial landscape:

• Poly-jobbing and business ownership: 24percent of working Ghanaians are poly-jobbers, supplementing their primary income with side hustles or additional work. Furthermore, 54percent of Ghanaians own or part-own a business, with 64percent operating solo and 32percent employing between 1 to 5 people. Notably, 78percent of self-owned businesses fall within the informal sector, highlighting the challenges of financial inclusion for many entrepreneurs.
• Financial stress and debt management: A significant 65percent of business owners report being highly financially stressed, with 42percent constantly worried about their income. However, the data shows a disciplined approach to managing debt, with 94percent of business owners confident their financial situation will improve. Their top financial priorities include securing income (73percent), ensuring safe investments (46percent), and managing expenses (44percent).
• Savings goals: Entrepreneurs prioritize savings for business continuity, their children's education, medical expenses, and emergency funds. While retirement savings rank low, with only 21percent saving for a comfortable retirement, there is a clear need for greater emphasis on long-term financial planning.
• The role of informal savings: Informal savings groups, such as susu clubs, play an essential role in the financial lives of business owners. Approximately 44percent of entrepreneurs participate in susu schemes, a higher rate than non-business owners (28percent). In addition, 34percent of business owners hold unbanked cash savings, citing convenience and security as key reasons for this preference.
• Retirement planning: The low priority placed on retirement planning is concerning, as only 16percent of business owners are confident that their savings will be sufficient for retirement. With only 21percent of business owners saving for retirement, there is a pressing need for greater awareness of retirement solutions, such as annuities, which are largely underutilized.

The need for financial advisory support

Despite these challenges, business owners demonstrate resilience. However, the OMFSM reveals that financial advisory services are underutilized, with only 31percent of entrepreneurs seeking professional guidance—compared to 21percent of non-business owners. Alarmingly, 49percent of business owners do not know where to turn for financial advice, underscoring the need for more accessible and reliable financial advisory services.

The way forward

The findings of the OMFSM highlight the need for entrepreneurs to focus on improving their financial literacy, especially in areas such as retirement planning, debt management, and savings. Financial services companies have a critical role to play in filling the gaps by providing affordable and accessible financial solutions, as well as increasing awareness of retirement products.

For Ghanaian entrepreneurs, the road to financial security and business growth involves strategic planning, a clear understanding of their financial needs, and access to the right tools and resources. By leveraging insights from the OMFSM and seeking professional advice, entrepreneurs can better navigate challenges, secure their financial futures, and achieve long-term success.

The Old Mutual Financial Services Monitor continues to serve as an invaluable resource, shedding light on the realities of entrepreneurship in Ghana while providing actionable strategies to foster financial stability and growth in the years ahead.

About Old Mutual Ghana

Old Mutual Ghana is one of Ghana’s leading financial institutions offering innovative Life insurance and Pensions solutions. Founded in South Africa, Old Mutual has been consistent in championing mutually positive futures by offering excellent financial services to a wide range of customers across the African continent.

The company established a branch in Ghana in 2013. It operates with a skilled knowledge of the Ghanaian market, backed by the expertise of an international brand. In Ghana, the company is currently made up of Old Mutual Life Assurance Company Limited and Old Mutual Pensions Trust, offering a diverse portfolio of financial solutions, including Savings plans, Group life benefits, Funeral plans, Travel insurance and Pensions schemes.