Head of Business at SME Bank, Unions Savings and Loans Dominic Donkoh has cautioned small business owners against emptying their bank accounts this election year.
Election years are characterized by economic instability that makes most business owners empty their accounts to make investments they deem secure.
However, speaking to JOY BUSINESS after the first edition of the Union SME Clinic this year, Mr. Donkoh said saving up is a more prudent decision.
“If you do not have a strong business opportunity, the best you can do is to save your money in the bank and earn interests. Keeping your money in your pocket does not earn you income”, he said.
Main speaker at the Clinic Toma Imirhe also advised businesses against taking up debts.
He projects interests rates would go up for the rest of the year as the Central Bank maintains a tight monetary policy this year.
This he expects will reduce the demand for money and limit the pace of economic expansion.
“Now is not a good time to undertake major investments if you are a small business owner”, Mr. Imirhe told the businesses gathered at the SME Clinic. He urged small scale businesses to rather save more to avoid the economic shocks of an election year.
The Union SME Clinic organized by Union Savings and Loans is a periodic workshop organized to equip small businesses with the requisite management skills.
The theme for this edition was “Managing your business for success in an election year”.