The reality about doing firm in Ghana — Jacob West CEO Michael Kyei-Ayensu stocks revel in – Life Pulse Daily
Editor-in-chiefFebruary 19, 20263 Mins read9
The Reality of Doing Business in Ghana: Insights from Jacob West CEO Michael Kyei-Ayensu
Introduction
The journey of establishing a successful business in Ghana presents unique challenges that often surprise even the most experienced entrepreneurs. Michael Kyei-Ayensu, founder and CEO of Jacob West Limited, recently shared his candid experiences about transitioning from the United Kingdom to Ghana’s business landscape. His revelations provide valuable insights for diaspora entrepreneurs and anyone considering entering Ghana’s dynamic market.
Key Points
- Michael Kyei-Ayensu relocated from the UK to establish Jacob West Limited in Ghana
- He initially underestimated the cultural and structural differences between UK and Ghanaian business environments
- Ghana's business ecosystem operates on relationships and cultural understanding rather than purely systematic processes
- His UK business playbook didn't translate directly to the Ghanaian market
- Despite early challenges, Jacob West has grown into a recognized real estate and property advisory firm
- His experience highlights the importance of local intelligence alongside technical expertise
Background
Michael Kyei-Ayensu built a successful business in the United Kingdom, where structured financing, predictable regulations, and data-driven decision-making shaped operations. This experience gave him confidence that similar systems could be replicated in Ghana. However, upon relocating, he quickly discovered that Ghana’s business environment operates on fundamentally different principles than what he was accustomed to in Britain.
Analysis
The Cultural Business Divide
The stark contrast between UK and Ghanaian business practices became immediately apparent to Kyei-Ayensu. While the UK business environment relies heavily on formal systems, processes, and data-driven approaches, Ghana’s ecosystem operates more on relationships, cultural understanding, and emotional intelligence.
“In the UK, we set up business with zero. There was no investment. It was ideas. And it became a business,” Kyei-Ayensu explained. This approach worked well in the UK because he understood the system and knew how to navigate it. However, in Ghana, he found himself starting from scratch without the institutional knowledge and networks that had supported his previous ventures.
The Relationship-Driven Model
Ghana’s business environment places significant emphasis on personal relationships and cultural connections. Unlike the UK’s more systematic approach, success in Ghana often depends on building trust, understanding local customs, and developing strong networks. This cultural aspect of business can be particularly challenging for diaspora entrepreneurs who may be accustomed to more formalized, process-driven environments.
The Diaspora Challenge
Kyei-Ayensu’s experience mirrors a common challenge faced by diaspora entrepreneurs returning home. The assumption that technical expertise and international experience alone guarantee success often proves to be a misconception. While global knowledge is valuable, understanding local market dynamics, regulatory frameworks, and cultural nuances is equally crucial.
Practical Advice
For Diaspora Entrepreneurs
1. **Invest Time in Local Understanding**: Before launching your business, spend significant time learning about Ghana’s business culture, regulatory environment, and market dynamics.
2. **Build Local Networks**: Establish relationships with local business leaders, industry experts, and community members who can provide valuable insights and support.
3. **Adapt Your Business Model**: Be prepared to modify your international business practices to align with local expectations and cultural norms.
4. **Seek Local Partnerships**: Consider partnering with established local businesses that understand the market landscape.
5. **Patience is Essential**: Building a successful business in Ghana often takes longer than anticipated, especially when navigating unfamiliar systems.
For New Business Ventures
1. **Understand Regulatory Requirements**: Familiarize yourself with Ghana’s business registration processes, tax obligations, and industry-specific regulations.
2. **Cultural Integration**: Learn about Ghanaian business etiquette, negotiation styles, and decision-making processes.
3. **Market Research**: Conduct thorough research on your target market, including consumer behavior, competition, and pricing strategies.
4. **Financial Planning**: Be prepared for different financing structures and potentially higher operational costs than anticipated.
5. **Local Talent**: Invest in hiring and developing local talent who understand the market and can bridge cultural gaps.
FAQ
Q: What are the main differences between doing business in the UK and Ghana?
A: The primary differences include the emphasis on relationships versus systems, the importance of cultural understanding, the pace of business operations, and the approach to decision-making and negotiations.
Q: How can diaspora entrepreneurs prepare for business in Ghana?
A: Diaspora entrepreneurs should invest time in understanding local culture, building networks, adapting their business models, seeking local partnerships, and being patient with the process.
Q: What challenges did Michael Kyei-Ayensu face when starting Jacob West in Ghana?
A: He faced challenges understanding the local system, building necessary networks, adapting his UK business approach, and navigating cultural differences in business practices.
Q: Is it necessary to have local partners when starting a business in Ghana?
A: While not always mandatory, having local partners can significantly ease the process of understanding the market, navigating regulations, and building necessary relationships.
Q: How long does it typically take to establish a successful business in Ghana?
A: The timeline varies depending on the industry and business model, but generally, it takes longer than in more developed markets due to the need to build relationships and understand local dynamics.
Conclusion
Michael Kyei-Ayensu’s journey with Jacob West Limited offers valuable lessons for anyone considering business ventures in Ghana. His experience demonstrates that while international expertise is valuable, success in Ghana’s business environment requires a deep understanding of local culture, relationships, and systems. The transition from a structured, process-driven environment to a relationship-based, culturally nuanced market presents significant challenges but also opportunities for those willing to adapt and learn.
For diaspora entrepreneurs and international businesses, the key takeaway is clear: technical knowledge alone is insufficient. Success in Ghana requires a combination of global expertise and local intelligence, patience, and a willingness to embrace cultural differences. As Ghana’s economy continues to grow and attract international investment, understanding these dynamics becomes increasingly important for sustainable business success.
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