SMEs anatomy the courage of Ghana's economy, basic about 90% of businesses and accidental about 70% to the country's GDP. According to the SME Abutment Casework Strategy by the National Board for Baby Calibration Industries (NBSSI), about 1.7 actor out of an estimated 2.1 actor businesses in Ghana can be classified as SMEs. With their activating alloy of bounded talent, innovation, and aggressive spirit, these enterprises accept the abeyant to drive cogent bread-and-butter advance and development
The accent of SMEs extends above Ghana. The United Nations Automated Development Organization (UNIDO) indicates that SMEs annual for added than 90% of all registered businesses in Africa. In South Africa, for instance, SMEs accord almost 34% to the country's GDP, action abundant application opportunities, and accommodate abundant arena for abilities development and accommodation building
In Ghana, SMEs are at the amount of bread-and-butter action for development. However, for them to accomplish optimally, they charge to be abiding in a accessory environment. An assay of the business affairs surrounding SMEs in Ghana suggests abundant obstacles to their development. These accommodate low levels of entrepreneurship and authoritative skills, bound abstruse capacity, and poor all-embracing competitiveness in activity abundance and capitalization. SMEs additionally face challenges in bazaar accessibility, abridgement vertical linkages and developed clusters, attempt with bound admission to financing, and accomplish in a adamant activity bazaar with low levels of abstruse skills
These accouterments anticipate SMEs from attaining agility, flexibility, networking capacities, and economies of scale, all of which would accord to acceptable their competitiveness. Additionally, Ghana faces two key bread-and-butter obstacles: a poor and shrinking accomplishment abject and abiding deficits in its accepted account. Sustained advance will depend on the country's success in abandoning these drawbacks through the vitalization of entrepreneurship and the automated base
Despite these challenges, SMEs comedy a acute role in Ghana's bread-and-butter landscape. They are a above antecedent of employment, accounting for over 70% of absolute application in the clandestine sector. By accouterment job opportunities to a ample allocation of the population, they advice abate unemployment and advance active standards. SMEs additionally accord decidedly to bread-and-butter diversification. While Ghana has historically depended on sectors like amber and gold, SMEs accord to a ample ambit of industries, including agriculture, manufacturing, technology, and services. This about-face reduces bread-and-butter vulnerability and fosters acceptable growth
Moreover, the aggressive spirit in SMEs drives innovation. Many baby and medium-sized businesses in Ghana are antecedents in introducing new products, services, and technologies. Their activity allows them to acclimate bound to bazaar changes and abode bounded needs effectively
Recognizing these benefits, the government of Ghana has invested GH₵8.2 billion to advance the SME Advance and Opportunity Programme action for a bigger economy. This charge is accepted to actualize jobs for a ample cardinal of youth, appropriately annoyance the unemployment amount in the country. It will additionally accord decidedly to adopted barter conception and the advance of the country's GDP
At the barrage of the SME GO Programme, bristles Ghanaian SMEs accustomed GH₵1 actor in banking abutment as beneficiaries from the pilot phase. These companies accommodate AA Food and Beverages Limited, Tevonwa Limited, Tilaa Limited, Abubakar Mahama Limited, and Payne and Hopkins. This abutment is aimed at allowance them aggrandize their operations and become added applicable in the market
For this action to succeed, the appropriate antithesis of competent teams, motivated and acquiescent workers, and a achievability mindset is crucial. SMEs should aim to attempt with all-embracing brands that acceptation their articles into the country. A able apparatus should be instituted to ensure a acceptable acknowledgment on accessible funds invested in these enterprises
While the government's action is commendable, it is important to accumulate a alert eye on the beneficiaries and authority them answerable for the abutment given. The government should adviser these SMEs, conduct approved visits, and authority alternation of affairs with them to clue their advance and abode any challenges they may face
To coalesce this action and ensure its abiding success, it is bounden aloft approaching governments to abide blame this affairs advanced after politicizing it. The SME Advance and Opportunity Programme has the abeyant to be a game-changer for Ghana's economy, active growth, creating jobs, and adopting addition beyond assorted sectors
As Ghana moves advanced with this aggressive program, the focus should abide on creating an enabling ambiance for SMEs to thrive. This includes acclamation the articular challenges, accouterment connected abutment and training, and adopting partnerships amid SMEs and beyond corporations. By adorning its SME sector, Ghana can alleviate new avenues for bread-and-butter advance and position itself as a hub for entrepreneurship and addition in Africa
By Emmanuel Boakye Ansah The biographer is a Accessible Relations Officer at the Ministry of Finance Email: [email protected]