Institutional Partnerships in the Pathways to Formalization Program
The Pathways to Formalization Program, an initiative created by She Grows It (SGI), the Ghana Inclusive Development Research Network (GIDRN), and FLUID Finance Technologies brings together formal institutions, referred to as Agency, and informal institutions to address local business and industry growth.
Pathways seeks to engage the formal institutions that want to grow their industry forward by taking a comprehensive approach to diversity, equity, and inclusion (DEI) such that the practice and operational standards of their business have measurable improvements in environmental and social governance (ESG) metrics. We are interested in partnering with institutions that want to serve as mentors to up-and-coming brands and service providers, referred to as protegees. Mentorship into formalization can serve as a bridge to larger industry growth through more qualified enterprises and subcontractors operating in the value chain.
MSMEs represent the largest group of Ghanaian-owned businesses and could potentially offer an important source of tax revenue to the Ghana Revenue Authority (GRA). MSMEs employ more than 80% of the workforce and are responsible for 70% of national output. However, in Ghana's current business ecosystem, most MSMEs are informal and are still limited in their access to credit, technology, and operational equipment. Policy development and support services for MSMEs are also limited and those that do exist are not comprehensive or efficient in addressing barriers to formalization. Thus, not addressing formality and thereby tax compliance limits the business credibility of enterprises operating within the system, limits development and local ownership of industries, and shorts the potential of sectors to achieve growth beyond aid.
The Pathways to Formalization Program is a new approach to increase formal business practices and to address challenges in the mobilization of tax revenue.
The PATHWAYS TO FORMALIZATION PROGRAM offers institutions:
FORMALIZED BUSINESS generated by the education and mentorship of MSME owners, then measured by SGI’s Impact and Evolution Standards (IES), and third-party verifiers.
SUPPORT FOR GHANAIAN BUSINESS by investing in a program that economically supports MSME owners and the overall Ghanaian business community.
IMPROVED BUSINESS ECOSYSTEM HEALTH as well as better agency access and inclusion applied within the educational, financial, communication, and information technology sectors that actualize building more resilient future businesses.
Connect with SGI, GIDRN, and Fluid today to learn how your company can help grow Ghana to reach its Beyond Aid goals with Pathways to Formalization. Email info@shegrowsit.com or fill out the form below to get institutional partnership information sent to your inbox.
USING A NEW FORMALIZATION STRATEGY THAT ADVANCES THE INTEGRITY OF THE BUSINESS ECOSYSTEM
The Pathways to Formalization Program is taking a revolutionary step forward for tax formalization projects. With the development of new business and industry education and training programs, we can measure improvements in business formalization and the increase in tax revenue generated by businesses that complete the program.
This new approach will provide comprehensive educational pathways that transcend academic disciplines, industry silos, and geographical regions by removing challenges associated with access to knowledge of business administration, technological tools, financial services, and participation in the political economy.
This new methodology will measure the formalization benefit based on a business practice’s performance and how that practice produces compliant businesses. The program will do this by creating a database of businesses - via SGI’s New Green Book (NGB) - for each business type, similar to the way the medical field uses a control group to test efficacy. This allows us to isolate the businesses and the practices that enrolled ventures are conducting as the single variable that contributed to the informality and to apply positive change management and economic behavioral practices to matriculate more formally operating enterprises.
Currently, this new strategy is being proposed for validation by the Bank of Ghana, the agency charged with ensuring that the financial system is stable and ensure that it serves as a facilitator for wealth creation, economic growth, and development in Ghana. While the strategy will be the foundation for the Pathways to Formalization Program to increase tax compliance among MSMEs in Ghana, it will be available worldwide and could be applied in any country seeking to increase tax compliance among this targeted business owner demographic.
NEWS AND UPDATES RELATED TO THE PATHWAYS TO FORMALIZATION PROGRAM AND TAX COMPLIANCE
WHITE PAPER: Tax Mobilization Among MSMEs: How Behavior Economics Influences Growth Potential in Ghana’s Business Ecosystem
Financial Services Article: Does ‘Debrouillardise’ translate to ‘Resourcefulness or ‘Poverty Trap’?
Banking Article: Banking: the cost of going formal, an insight into the financial barriers found in the banking sector.
Educational Services Sector Article: The Role of Educational Institutions, a call to action for the five educational branches that play a critical role in the professional development of business owners.
Information Technology Sector Article: Limited ICT sector as a barrier to growth and formalization, a look into the imperative role the Information and Communication Technology Sector plays in the business formalization process.
Communication and Media Article: The Role of Communications and Media in Generating Inclusive Education, a call to action for the communications sector in Ghana.
News: G7 backs Biden's sweeping overhaul of the global tax system, a significant and unprecedented commitment to developing and emerging economies.
Methodology: SGI, Fluid, and the GIDRN established a working group to develop a new formalization methodology concept for equitable economic growth in Ghana.
Interested in getting updates like the above in your inbox?
SGI IS GRATEFUL FOR THE GENEROUS SUPPORT OF THE PATHWAYS TO TAX COMPLIANCE PROGRAM PARTNER
