School of Accounting, Economics and Finance, University of KwaZulu-Natal (UKZN), Province of KwaZulu-Nata, Durban, South Africa.

Abstract

The literature on development problems of small scale industries in Ghana tend to paint a broad brush picture that may lend less relevance to development planning specific to local situations. Drawing on the case of small scale agro-processing industries, this paper examines geo-specific constraints that affect the development of small scale industries in the kassena-Nankana District of North Eastern Ghana. The findings show that industrialists have limited economic access to raw materials and energy supplies owing to environmental factors and the impact of macroeconomic policies. There is also spatial inequity in the utilization of engine powered agro-processing technologies as a result of which many rural industrialists depend on man powered agro-processing technologies which have multiple adverse implications for production and growth. The main issues that underpin access to technology are the level of service development at the community level and accessibility to urban towns. There is also limited utilization of credit for capitalization owing to the lack of accessible credit facilities and ignorance while marketing of industrial products is constrained by climatic variability and poor debt recovery. Within the social setting, multiple household roles reduce time allocation of female industrialists to industrial production, while the lack of formal education and over burdened social expenditures present difficult managerial challenges to rural industrialists in general. The authors recommend the promotion of industrial development through a holistic approach to district development planning and management. Given the nature of the local economy, the authors stress the need to facilitate the development of the agricultural sector as pre-conditional and complimentary to the industrial development process.