Thesis On Small-Scale Enterprises

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Mensah 2004 drew up a basic profile on such SME challenges: SMEs are dominated by the owner/manager who takes all major company decisions.

The entrepreneur possesses limited formal education, access to and use of new technologies, market information, and access to credit from the banking sector is severely limited.

The former can be sub-divided into `organised’ and `unorganised’ enterprises.

The organised ones tend to have paid employees with a registered office whereas the unorganised category is mainly made up of artisans who work in open spaces, temporary wooden structures, or at home and employ little or in some cases no salaried workers. Rural enterprises are largely made up of family groups, individual artisans, women engaged in food production from local crops.

Hence, definitions which employ measures of size (number of employees, turnover, profitability, net worth, etc.) when applied to one sector could lead to all firms being classified as small, while the same size definition when applied to a different sector could lead to a different result.

Kayanula and Quartey in their research however identified a number of common definitions used when referring to SMEs in Ghana that could be used for purposes of this essay.Such impressive performance was partly contributed to the robust growth of the SME sector in Ghana.Available data from the Registrar General in Ghana indicates that 90% of companies registered are micro, small and medium enterprises (Mensah 2004).As indicated by OECD 2002, SMEs fast-changing technologies and globalising economies are putting increased pressures on firms to reorganise their structures to enhance adaptability and flexibility.Upgrading the skills of all types of employees is hence central to firm performance in SMEs which must be able to adapt quickly to evolving markets and changing circumstances, but which often have limited resources.This target group has been identified as the catalyst for the economic growth of the country as they are a major source of income and employment.Analogous to the situation in other countries though, Kayanula and Quartey 2000 state that there is no single, uniformly acceptable, definition of a small firm in Ghana as these firms differ in their levels of capitalisation, sales and employment.Limited access to finance remains a dominant constraint to small scale enterprises in Ghana.Credit constraints pertaining to working capital and raw materials are often cited by small firm and these partly stem from the fact that SMEs have limited access to capital markets, both locally and internationally. SMEs have difficulties in gaining access to appropriate technologies and information on available techniques. This fact is ascertained by UNCTAD 2005 which notes that most SMEs also lack the technical know-how and financial resources needed to acquire state of the art technologies and equipment required to improve productivity and to become internationally competitive. Regulatory Constraints: Although wide ranging structural reforms have improved, prospects for enterprise development remain to be addressed at the firm-level. Google(); req('single_work'); $('.js-splash-single-step-signup-download-button').one('click', function(e){ req_and_ready('single_work', function() ); new c. uses cookies to personalize content, tailor ads and improve the user experience.

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