Local Business Climate in Ghana – Insights for Policy Direction

Abstract

This study provides insights for enhancing the business climate in Ghana. The primary objective of the study was to identify the most relevant binding constraint(s) on the activities of micro, small and medium-sized enterprises (MSMEs) in the manufacturing sector of Sunyani Municipality and Berekum District of Ghana. Accordingly, a survey of 85 manufacturing MSMEs was conducted. In spite of energy crisis in Ghana at the time of research, the most relevant binding constraints to the enterprises surveyed were poor access to technology including technological support services, and poor access to market (which will be discussed in subsequent paper). The findings contradict policy focus on addressing governance and regulatory bottlenecks, and inadequate physical infrastructure. This underscores the importance of local business climate surveys in addition to national surveys in establishing the right policy focus for enhancing the business climate of localities within a country.

Business Characteristics and Entrepreneurial Management Practices of Small and Medium Enterprises in Ghana

“…After the independence of Ghana, successive governments implemented intervention programs to support the growth and development of SMEs in the country (Peprah et al, 2016;Serwah et al, 2012). Notwithstanding the government-led intervention programs, empirical evidence shows that SMEs continue to face management crises (Amoako & Matley, 2015;Benneh Mensah, 2012;Oppong et al, 2014;Peprah et al, 2016). Therefore, this study aims to examine the influence of the business size and sectors of operation on entrepreneurial patterns in the management practices of SMEs in the Greater Accra Region of Ghana using the behavioural theory of entrepreneurship.…”