Ghana has recently witnessed a surge in micro, small, and medium enterprises (MSMEs), accompanied by an influx of unregulated and uncertified products across food, cosmetics, and pharmaceuticals, raising serious concerns about quality standards, public health, and fair competition.

However, enforcement alone cannot be the sole tool for building a compliant business environment, particularly in a country where small businesses form the backbone of the economy. In Ghana today, MSMEs account for over 90 percent of all businesses, contribute more than 80 percent of national employment, and generate between 60 and 70 percent of Ghana’s Gross Domestic Product (GDP).

These figures represent more than statistics; they reflect the lived realities of millions of young people turning to entrepreneurship as a pathway to survival, dignity, and economic independence. However, many of these entrepreneurs face a common obstacle: navigating the bureaucracy required to formalize their businesses and register their products.

From my experience working with organizations focused on enabling young people into work through entrepreneurship, I have consistently encountered this challenge. Whether at youth-centred enterprise events or through professional engagement with young innovators, the frustration is evident. This bureaucratic hydra-like situation, whether at the point of registering their business or their products, keeps rearing its ugly head, militating against the progress they wish to make. For many young entrepreneurs, regulatory processes appear complex, costly, and time-consuming, and they discourage compliance from the outset.

This is particularly significant given that Ghana has an estimated 2.1 million MSMEs, the majority of which are microenterprises run by individuals or small teams. For these entrepreneurs, time spent navigating administrative processes often translates into lost income. In such circumstances, informality becomes less a choice and more a survival mechanism.

The recent action at Porials Pitch 3, therefore, presents an opportunity not only for enforcement but also for reflection. A more progressive approach would involve regulators partnering with event organizers ahead of such gatherings. Agencies such as the FDA and GRA could engage registered vendors in advance or even establish on-site support desks to register businesses, initiate product approvals, and collect essential SME data.

Additionally, GRA could implement a targeted amnesty program for youth?led businesses to regularise their tax status without penalties, reduce fear of compliance, and provide a supportive on?ramp into the formal tax system, particularly for informal and early?stage enterprises.

Such a strategy would transform enforcement into empowerment. A regulatory presence that not only inspects but also educates, guiding entrepreneurs through simplified processes, supporting product registration, and clarifying tax obligations would significantly lower compliance barriers. It would also enable regulators to build more reliable datasets on emerging SMEs and better understand the evolving entrepreneurial landscape.

The 2026 Edelman Trust Barometer shows that trust in government and its institutions remains among the lowest globally, continuing a multi-year trend. For young entrepreneurs, particularly in emerging markets and African ecosystems, this trust deficit shapes how they pursue opportunities and manage risks. Many founders increasingly rely on peer networks and informal systems rather than state-led support.

This reflects what Edelman describes as “insular trust,” where individuals depend on smaller, familiar networks instead of large public institutions. In practice, it means that, for a generation of young business builders in uncertain environments, trust is shifting away from government toward communities, collaborators, and the market itself.

In this context, a more collaborative and proactive regulatory approach is not just desirable but necessary to rebuild trust between institutions and entrepreneurs. This trust is critical in an economy where a significant share of the working-age population is self-employed or engaged in early-stage business activity, often referred to locally as “side-gigs”.

Young entrepreneurs, including those at Porials Pitch 3, are not inherently resistant to regulation. Rather, they are navigating complex systems with limited support. If Ghana is serious about fostering innovation, job creation, and sustainable growth, then regulatory frameworks must do more than enforce compliance; they must make compliance accessible, efficient, and achievable.

The enforcement action at Porials Pitch 3 was necessary, given that regulatory breaches do occur and are much more pronounced in recent times. However, the next step must be proactive and progressive: simplifying processes, strengthening collaboration, and meeting entrepreneurs where they are.

In a country where small businesses employ the majority of the workforce, I believe supporting compliance must go beyond enforcement. It must become a proactive economic imperative adopted by critical stakeholders, whose activities create either an enabling environment or otherwise.