Small businesses in Ghana are being urged to separate personal and business finances, with Absa Bank warning that poor financial discipline continues to limit growth and cut off many enterprises from accessing credit.
According to the Head of Citizenship at Absa Bank Ghana Limited, Priscilla Yeboah, many businesses collapse prematurely because owners treat business income as personal income, making it difficult to track profitability, build savings and qualify for financing.
Speaking on the on-air series of the 2026 Citi Business Festival with Nii Larte Lartey, Priscilla Yeboah said separating accounts is not merely an accounting exercise but a business survival strategy.
“Trust me, a lot of Ghanaian small businesses die prematurely because of this because they just plainly refuse to separate their personal finances from their business monies,” she stated.
According to her, entrepreneurs must deliberately pay themselves a salary from the business and avoid drawing directly from business cash flows for personal expenses.
“Make sure once you are running a business and you call it a business take your salary out of whatever work you have done. Pay yourself,” she advised.
MadamYeboah explained that mixing transactions makes it difficult for financial institutions to assess business performance and provide financing.
“We see accounts that good monies come through but they are not able to access credits because they are not consistent. The financial history doesn’t speak to just the business,” she noted.
She argued that maintaining dedicated business accounts creates clearer financial records, strengthens credibility and improves access to lending.
Beyond access to credit, she encouraged businesses to adopt structured savings habits including automated transfers, emergency funds and goal-based accounts to support expansion and protect operations during shocks.
According to her, businesses should intentionally save for equipment maintenance, unexpected expenses and future investments rather than relying on borrowing during periods of stress.
“Every business, the goal is to grow. The goal is to scale up. The goal is to become a bigger company,” she said.
The 2026 Citi Business Festival is powered by 97.3 Citi FM and Channel One TV in partnership with Absa Bank and sponsored by Absa Bank, MTN, Zonda Tec Ghana Limited and Petra Trust.
