Zenith SME Business Empowerment Lab: SMEs urged to identify business risks and adopt mitigation strategies to ensure sustainability

Small and medium-sized enterprises (SMEs) have been encouraged to adopt proactive risk management practices as a critical step toward building resilient, sustainable businesses capable of withstanding unforeseen challenges.

According to the experts, business resilience goes beyond responding to crises. It requires a deliberate and strategic approach to identifying potential vulnerabilities, safeguarding critical operations and implementing contingency measures that enable businesses to adapt, recover and thrive in the face of disruptions.

The call was made by industry experts during the third edition of Zenith Bank Ghana’s SME Business Empowerment Lab, held virtually on Thursday, October 29, 2026, under the theme, “Building a Resilient and Disaster-Proof Business.”

Warning signs

Speaking at the webinar, the Chief Operating Officer of the Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL), Samuel Yeboah identified six major business red flags, categorised into internal and external risks. “While internal risks include poor cash flow, rising debt, inadequate record-keeping and weak governance structures, external risks comprise excessive dependence on a single buyer or supplier, unmanaged climate-related threats and declining product quality”.

Drawing attention to agricultural SMEs, Mr. Yeboah explained that climate shocks, fluctuations in production costs, delayed payments from buyers and biological hazards could significantly disrupt business operations. He particularly cautioned against overdependence on a single customer or supplier, stressing the importance of diversifying business relationships to minimise potential losses.

To address these vulnerabilities, he outlined a five-step business resilience plan, encouraging SMEs to identify their most significant risks, assess their financial implications, develop appropriate response measures, assign clear responsibilities and regularly review their contingency plans.

He further emphasised the importance of maintaining accurate financial records and establishing alternative suppliers and buyers to strengthen business continuity.

Economic stability

Also addressing participants, the Chief Operating Officer of the Ghana National Chamber of Commerce and Industry (GNCCI), Frederick Adu-Amoako urged SMEs to take advantage of periods of economic stability to strengthen their preparedness against potential business disruptions.

Citing Ghana’s improving economic indicators, including declining inflation and Treasury bill rates, he emphasised that favourable economic conditions should provide an opportunity for businesses to build resilience ahead of future uncertainties.

He identified natural disasters, cyber threats, supply chain disruptions, reputational damage and regulatory challenges among the risks businesses must anticipate and prepare to manage.

To mitigate these risks, Mr. Adu-Amoako encouraged entrepreneurs to develop a simple, one-page crisis management plan outlining potential threats, critical business operations, emergency contacts and staff responsibilities.

He further stressed the importance of maintaining backup records, protecting financial resources and ensuring employees are adequately prepared to respond to emergencies.

He also highlighted the GNCCI’s role in strengthening business resilience through advocacy, capacity building, business networking and access to market opportunities.

He added that the Chamber engages government and regulatory institutions on issues affecting businesses while facilitating partnerships and market expansion opportunities for entrepreneurs.

Insurance

Speaking on the role of insurance in business resilience, the Head of Alternative Distribution and Customer Experience at Hollard Insurance Ghana, Yvonne Dowuona underscored the importance of insurance as a critical risk mitigation tool for SMEs, urging business owners to adequately protect their operations against unforeseen losses.

She emphasised the need for entrepreneurs to accurately assess the value of their business assets and select appropriate insurance policies that provide sufficient coverage for their specific risks.

She further encouraged SMEs to consider insurance protection for their properties, business operations, liabilities and lives to minimise their financial exposure in the event of unexpected disruptions.

Ms. Dowuona also advised business owners to regularly review the scope of their insurance coverage and renew their policies annually to ensure they remain adequately protected as their businesses evolve.

She stressed the importance of aligning insurance coverage with the changing needs and risks of businesses to support long-term sustainability.

About the Zenith SME Business Empowerment Lab

This edition marks the third webinar in the Zenith SME Business Empowerment Lab series for the year, further extending the Bank’s efforts to provide SMEs with relevant knowledge and practical insights to support different aspects of their business operations.

The first and second editions explored the themes “Building Stronger Businesses: Unlocking Zenith Bank’s SME Ecosystem” and “Building a Sustainable Business in a Changing Economy – Legal and Regulatory Essentials for Small Businesses”, respectively, addressing key areas critical to business growth, sustainability and compliance.

Through these engagements, the Zenith SME Business Empowerment Lab continues to serve as a platform for knowledge exchange, capacity development and practical business education. Ultimately, the initiative seeks to contribute to a stronger SME sector, with better-equipped enterprises that are positioned to innovate, compete, create employment and play a greater role in Ghana’s economic development.