How to Raise Money to Start a Business in Ghana

Raising money to start a business has never been easy for entrepreneurs in Ghana. In fact, it is one of the greatest challenges you’ll likely face at the early days of your business. It doesn’t matter how beautiful your business idea looks, if you don’t have the necessary financial backing, the idea is as good as dead.

How to Raise Money to Start a Business in Ghana

As an entrepreneur, how do you raise money to start a business? Well, this is a very difficult question but with a simple answer. You might also want to ask, are they easy ways to raise money for business in Ghana, and how can one go about it? Startup capital is a common problem faced by many entrepreneurs. However, to every problem, they lie a solution somewhere. In this guide, I will show you how to raise money to start a business in Ghana.


For most entrepreneurs, their first point of call whenever a business idea pops up is the bank. However, I am not going to write off the idea of approaching your bank entirely, but that should only be after all other avenues have been exhausted.

How to Raise Money to Start a Business in Ghana

Below are some of the top means of raising funds for your small business in Ghana very fast. It is my belief that with these suggested means of raising money for your business that you’ll hit the ground running in your business.

1. Personal Savings

The best way of raising money for any business venture is through personal savings. It only makes sense that you put your money where your mouth is. If your business idea is so good as you say it is, then you shouldn’t have difficulties committing your savings to it.

Using personal savings as startup capital works best for people who already earn some form of income, no matter how little it is. Using your savings is also a sign of commitment which could also attract more capital.

You might want to ask how can my personal savings bring more capital for my business.

Using your savings as the startup capital, it is easier to convince your friends, family, investors and, banks to give you capital. It’s a sign of confidence and a show of faith that you believe the business idea is worth it.

2. Family and Friends

Apart from your personal savings, your next point of call is your family and friends. Your family and friends are people you have a strong influence over. There is no how you wouldn’t get some substantial amount to invest in your business. This is because they care about you and want you to succeed. They are also willing to listen to your ideas and support.

You are also emotionally connected to your family and friends and they are most likely to take a higher risk to invest in your ideas, unlike banks and investors who consider risk very closely and seriously. You must make them see the viability of your business idea.

3. Partnership

You can also raise funds for your startup by finding a partner who’s got the cash. You may have a brilliant business idea, technical skills, but you still need a partner who has money that you need to put your ideas to work.

With a profitable business idea and a partner who is willing to contribute the capital, both of you bring something to the table and can share ownership of the business. It’s a win-win situation for both of you.

Partnership is one of the biggest drivers of inventions if you seek and find the right partner. Most of the world’s biggest companies today came as a direct result of wise partnership.

4. Angel Investor

An angel investor is typically someone who has a lot of ‘free’ money and is willing to invest in your business in return for an ownership stake.

Angel investors are usually informal business people, or high net-worth individuals who are looking for high return investments. Some of them are experienced entrepreneurs who have become wealthy from the businesses they own but are keen to invest in new startup businesses as a way of helping the next generation of entrepreneurs.

Additionally, angel investors often provide coaching and mentorship which are very important for any young business.

Although it’s relatively easier to get money from angel investors, they usually demand a high stake in your business to compensate for the risk they are taking by investing in your new and ‘untested’ business. Angel investors are often people you know or are recommended to you by people who know them. Every wealthy person in your neighborhood or social circles is a potential target in this regard.

5. Business Plan or Entrepreneurship Competition

You can also raise enough money for your business idea by entering business plan or entrepreneurship competitions. They are so many business plan competitions for African entrepreneurs and small business startups.

The aim of these competitions is to encourage and boost small and medium scale business in Ghana and Africa as a whole. Governments, foundations, the United Nations are just a few of the big names behind some of these contests.

Even if you don’t win the competition, you could attract a lot of attention to yourself and your business idea. You never can tell what good thing that can happen from there. You might even be lucky to meet your angel investor.

6. Small Business Grants and Loans

Many governments and international agencies are interested in supporting small and medium businesses. These small and medium businesses (SMEs) plays an important role in the growth of the country’s economy.

SMEs also generate a lot of employment, improve local technology and produce many products and service that support larger companies and industries. For these reasons, government institutions and international organizations set up several grants and loans to support small and medium scale businesses in Ghana.

Unfortunately, many people do not know about these opportunities. Applications for these grants and loans are usually free and will cost you nothing.

7. Crowdfunding

Crowdfunding has recorded a lot of success, and with the right product and pitch, you can be one of them. The idea of crowdfunding also known as crowd financing is a new and fast-spreading way of raising money for businesses.


Crowdfunding allows you to raise small amounts of money from many people at the same time. Although this practice has existed for a long time, the spread of the internet has taken it to a whole new level. It’s amazing at how much you can raise in a very short time with this method.

How does crowdfunding works?

You present your business idea or proposal to a ‘crowd’ by posting it on a website. Your proposal is supposed to convince potential investors and offer them a certain percentage of ownership in your business should they decide to invest.

Another version of crowd financing allows interested investors to offer you capital for which you will pay back with some interest.

No matter the structure, the eventual goal of crowd funding is that it allows ordinary people from across the world to offer you the critical capital you need to start and grow your business.

Some of the noteworthy crowdfunding platforms out there are and,

8. Approach Your Bank

Approaching your bank for a loan to start up your business should be your last resort. Banks are fun of turning down loan applications by small businesses and startup entrepreneurs.

SEE ALSO: How to Get Instant Loan in Ghana.

However, you must understand that banks make most of their money from the interest they charge on loans. So, why is it difficult to get a loan to start your small business while large companies find it so easy?

You might want to ask, why is that so?

The reason is simply that large companies have been in business for a while and has proven that it is profitable. That is not the case with your startup business. given both options, banks will always prefer to lend to a low-risk customer that would almost certainly pay back.


  1. I have a new telecom business fully registered in Ghana in June 2021. I have also put up some infrastructure and installed some equipment and devices for smooth role out of operations probably by March 2022. However, I urgently need some funding to complete installation processes, hire the requisite human capital and launch the operations by March 2022. I need a financier, partner or co-founder urgently.

  2. I wish to go for loan but I have been warn not to go for it.
    I have a business plans but I lack the capital so what should I do.


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