Since financial readiness is the missing link when it comes to developing Micro, Small and Medium Enterprises (MSMEs), we need to figure out who needs to act and how. It is not just the Micro, Small and Medium Enterprise owners who need to act; stakeholders such as government institutions, financial service providers, business support agencies and the private sector need to work together to equip MSMEs with the needed financial capacity for their growth.

For some time now, financial trainings have been treated as an option, even though entrepreneurs are expected to pursue it as a necessity. Many MSMEs only learn about money management when they are in trouble or when they want to borrow money. However, in order to help these businesses, financial capacity ought to be embedded at every stage of business support.

When businesses access loans, grants, or receive help from incubation programmes, there is a need to assist in how to handle these monies. Simple financial readiness programs should focus on things like digital bookkeeping tools, pricing models, record-keeping and planning for the long term. Financial training is crucial for MSME growth and should be a core component of the support they receive.

The Organisation for Economic Co-operation and Development (OECD) reports higher survival rates among businesses with basic bookkeeping and budgeting practices. A 2020 OECD study across Europe showed that small businesses with regular financial records recorded stronger revenue stability within three years of startup.

Singapore integrates compulsory financial management models into government-funded SME programs. As a result, participants show lower loan default rates and stronger repayment histories according to Enterprise Singapore program reviews. Similarly, in Kenya, research from Kajiado County shows that SMEs with sound bookkeeping skills saw a 41% increase in financial performance.

Financial institutions also have a role to play. When MSMEs do not have records and struggle with cash flow, they often get turned down for credit. This is, however, a chance for banks and microfinance institutions to step in and, together with business support institutions and companies,s work at ensuring adequate technology is provided for financial training. This can help businesses before and after they access loans.

Inclusion is really important for this effort. Women-led businesses and rural entrepreneurs are often the ones affected by financial capacity gaps, not because of a lack of potential but because support systems rarely reflect their realities. For example, the International Finance Corporation (IFC), based on research conducted in Sub-Saharan Africa, found that women-owned small and medium-sized businesses got smaller loans and had to pay them back faster. Some countries, such as Canada, are addressing this challenge by providing women with financial education and access to credit.

Digital payment systems and bookkeeping apps make it easier for businesses to track income, manage expenses, and build financial histories. However, technology alone is not enough. Entrepreneurs must be supported to understand and consistently use these tools through guidance, follow-up and integration into broader enterprise support programs. When MSMEs become financially and digitally visible, they gain credibility and unlock new opportunities for growth.

At its core, financial readiness is about sustainability. Businesses that understand their finances are better equipped to survive economic shocks, reinvest profits and create jobs. As Ghana continues to promote entrepreneurship as a driver of development, success should not be measured by how much funding is disbursed, but by how many businesses are still standing and growing years after. Access to finance may open doors, but financial readiness determines what happens after those doors are opened. By prioritising financial capacity alongside capital, Ghana can build an entrepreneurial ecosystem that does more than support businesses, but rather strengthens them, and that is how finance is transformed into lasting impact.

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The author, Samira Abdul-Azeez, is a lawyer and Deputy CEO of the Ghana Enterprises Agency.