Smes in Ghana

In: Business and Management

Submitted By Tijani
Words 1637
Pages 7
Background of Literature Review on SMEs in Ghana:
Globally, the contribution of Small and Medium Enterprises (SMEs) to the growth of national economies is significant. In the developed economies such as Germany and the United Kingdom small businesses are recognized as the main engines for growth and development. Indeed, studies conducted in recent years in developed markets, including the Freedman studies done in the United Kingdom, confirm that small businesses account for the highest number of registered companies and make significant contributions to economic growth and prosperity. In Ghana, readily available data on SMEs is scarce but statistics from the Registrar General’s Department suggests that 92 per cent of companies registered are micro, small and medium enterprises. SMEs in Ghana have also been noted to provide about 85 per cent of manufacturing employment, contribute about 70 per cent to Ghana’s GDP, and therefore have catalytic impacts on economic growth, income and employment.
It is estimated that SMEs employ 22% of the adult population in developing countries (Daniels, 1994; Daniels & Ngwira, 1992; Daniels & fisseha. 1992; Fisseha. 1992; Fisseha & Mcpherson, 1991; Gallagher & Robson, 1995 and Kayanula & Quartey, 2000). The sector employs about 15.5% of the labour force in Ghana (Parker et al, 1994), has experienced higher employment growth than micro and large – scale enterprises.
Definition of SMEs
There is no single, uniformly acceptable definition of a small firm (storey, 1994). Firms differ in their levels of capitalization, sales and employment. Hence, definitions that employ measures of size (number of employees, 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.
The first attempt to…...

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