ENTERPRISE GHANA - STOP, THINK, MOVE

In the last few years enterprises have endured the effects of a deteriorating macro-economic environment, protracted energy crisis, weakening consumer confidence and rising cost of doing business.

?

Many enterprises barely made it through this period.

?

By the close of 2015, and with the fiscal discipline roadmap agreed with the IMF, business confidence increased somewhat. The energy supply situation had improved though the sustainability of the supply was uncertain, and the currency decline had slowed for a few weeks. It seemed that the actions agreed to stabilize and improve the macroeconomic environment would keep us on track.

?

Many enterprises started off 2016 with guarded optimism.

?

However, enterprises are now waking up to the fact that in addition to some of the old factors that threatened their viability and profitability, they are now confronted with new risks that have “crept” into their business operations.

?

First, in the quest to generate more revenue to make up for the short fall in export revenue due to the drop in production volumes and prices of commodities and to service its debts, Government introduced new taxes that have increased costs to enterprises.

?

Second, as a result of the recent review of utility tariffs the relief from the improved supply of energy has been replaced by the strain of very high energy bills.

?

Third, inflation has doggedly risen, de-value the disposable incomes of consumers to pay for essential goods and basic services. Worse, disposable income have risen at a pace slower than inflation. As a result demand for goods and services has been flat as costs rise and margins weaken.?

?

Fourth, enterprises have limited space to access financing as they compete with government and when financing is available the cost is high. With reduced returns on investments, enterprises now hesitate to make planned investments.

?

The overall outcome of all these developments is that Enterprise Ghana still lacks the environment in which to be competitive, viable and profitable.

?

The strategies that enterprises have applied in recent past are no longer relevant. New strategies have to be developed and executed to ensure they can exploit the opportunities that can be found in these difficult times.

?

Enterprises must:

·?????? STOP to deeply understand the environment that they operate in, the specific impact of the environment on their operations and make sure you know where they are;

·?????? THINK afresh about their strategic imperatives and develop the appropriate responses; and

·?????? MOVE by translating the strategy into action and rigorously executing.