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About 70 per cent of businesses in Ghana earn less than GHS10,000 annually, while only 0.01 per cent generate over GHS1 million, according to the latest Integrated Business Establishment Survey (IBES) released by the Ghana Statistical Service (GSS).
The report highlights both a dramatic increase in the number of businesses and enduring structural challenges within the economy. Ghana’s business sector remains largely informal, with 92.3 per cent of enterprises operating outside the formal economy.
Business establishments have grown from 640,000 in 2014 to 1.87 million in 2024—more than tripling over the past decade. However, employment has not grown at the same pace, with the workforce increasing from 3.28 million to 6.90 million in the same period.
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The data also shows that micro-sized enterprises, employing between one and five people, dominate the landscape. These now make up 90.4 per cent of all businesses, a steep rise from 16.6 per cent in 2014.
Sector-wise, the services industry remains the largest, accounting for 76.7 per cent of all businesses. The industrial sector follows with 21.1 per cent, while agriculture lags behind at 2.2 per cent.
Commenting on the findings, tax analyst Francis Timore Boi called for a comprehensive and simplified strategy to improve revenue mobilisation from the informal sector.
“So for me, I think we need a clear and holistic approach—a very simplified approach—to see how we can tax the informal sector,” he said.
He suggested exploring models like the vehicle income tax system used for commercial drivers but noted that even such models have limited reach. “Identifying 2 million taxpayers in the informal sector may not be enough. After identification, what next? How do we assess their income?” he asked.
The findings raise important questions about economic structure, job creation, and how best to support and regulate the growing informal economy.
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