The study used descriptive statistics design type to assess the role that MSMEs are playing with respect to employment in Ghana. The study adopted the methodology employed by Ghana Statistical Service (GSS) to undertake a nationwide survey on the Integrated Business Establishment Survey II (IBES II, 2016). It used the data generated by GSS from IBES II 2016 Survey report. The data set used included the employment levels (numbers), size and the status of employment (permanent and temporary) offered by MSMEs in Ghana. It was revealed from the study that the MSMEs in Ghana offered employment of about 82 percent to the working population in the country with marked differences in the regions. Out of the employment offered by MSMEs in Ghana, about 81 percent is for permanent whilst 86 percent is for temporary employment. The Micro enterprises employed larger percentage of the working population than the Small and Medium enterprises. We are recommending that the central, regional and district structures of governance in the country should continue to initiate, develop and implement pragmatic policies that will enhance the growth of the MSMEs’ sector in the country. The programmes and policies to enhance the growth of the Sector should be focused on specific areas and size of the MSMES. The MSMEs sector at all levels is still confronting with both endogenous and exogenous challenges such as access to funds, lack of managerial skills and applications of appropriate technologies, registration and regulations issues as well as record keeping and access to international market. All stakeholders in the sector should work hand in hand to resolve these challenges for optimum operation of the MSMEs in the country to help reduce the unemployment situation in the country.
Seth Kwaku Amoah,
Alfred Kwabena Amoah,
The Role of Small and Medium Enterprises (SMEs) to Employment in Ghana, International Journal of Business and Economics Research.
Vol. 7, No. 5,
2018, pp. 151-157.
W. Nickell, The CEP-OECD institutions data set (1960-2004): Centre for Economic Performance, London School of Economics and Political Science, 2006.
P. Stein, T. Goland, and R. Schiff, “Two trillion and counting: Assessing the credit gap for micro, small, and medium-size enterprises in the developing world,” McKinsey & Company and IFC, 2010.
R. Kumar, "Targeted SME Financing and Employment Effects: What Do We Know and What Can We Do Differently?," World Bank, 2017.
M. Ayyagari, A. Demirguc-Kunt, and V. Maksimovic, Small vs. young firms across the world: contribution to employment, job creation, and growth: The World Bank, 2011.
J. Page, and M. Söderbom, “Is small beautiful? Small enterprise, aid and employment in Africa,” African Development Review, vol. 27, no. S1, pp. 44-55, 2015.
Y. Li, and M. Rama, “Firm dynamics, productivity growth, and job creation in developing countries: The role of micro-and small enterprises,” The World Bank Research Observer, vol. 30, no. 1, pp. 3-38, 2015.
H. C. Fang, R. V. Randolph, E. Memili et al., “Does size matter? The moderating effects of firm size on the employment of nonfamily managers in privately held family SMEs,” Entrepreneurship Theory and Practice, vol. 40, no. 5, pp. 1017-1039, 2016.
J. Abor, and P. Quartey, “Issues in SME development in Ghana and South Africa,” International Research Journal of Finance and Economics, vol. 39, no. 6, pp. 215-228, 2010.
E. Avevor, “Challenges faced by SMEs when accessing fund from financial institutions in Ghana,” 2016.
D. Kayanula, and P. Quartey, "Paper on the Policy Environment for Prompting Small and Medium-Sized Enterprise in Ghana and Malawi," University of Manchester: Crawford House, 2000.
M. Oppong, A. Owiredu, and R. Q. Churchill, “Micro and small scale enterprises development in Ghana,” European Journal of Accounting Auditing and Finance Research, vol. 2, no. 6, pp. 84-97, 2014.
K. Dalitso, and Q. Peter, “The policy environment for promoting small and medium-sized enterprises in Ghana and Malawi,” University of Manchester, 2000.
P. G. Piperopoulos, Entrepreneurship, innovation and business clusters: Routledge, 2016.
M. Hosseini, S. Banihashemi, N. Chileshe et al., “BIM adoption within Australian Small and Medium-sized Enterprises (SMEs): an innovation diffusion model,” Construction Economics and Building, vol. 16, no. 3, pp. 71, 2016.
M. Hossain, and I. Kauranen, “Open innovation in SMEs: a systematic literature review,” Journal of Strategy and Management, vol. 9, no. 1, pp. 58-73, 2016.
M. S. Dar, S. Ahmed, and A. Raziq, “Small and medium-size enterprises in Pakistan: Definition and critical issues,” Pakistan Business Review, vol. 19, no. 1, pp. 46-70, 2017.
Q. Hu, R. Mason, S. J. Williams et al., “Lean implementation within SMEs: a literature review,” Journal of Manufacturing Technology Management, vol. 26, no. 7, pp. 980-1012, 2015.
D. Perera, and P. Chand, “Issues in the adoption of international financial reporting standards (IFRS) for small and medium-sized enterprises (SMES),” Advances in accounting, vol. 31, no. 1, pp. 165-178, 2015.
W. F. Steel, and L. M. Webster, How small enterprises in Ghana have responded to adjustment: The World Bank, 1991.
B. Osei, A. Baah-Nuakoh, K. Tutu et al., “Impact of structural adjustment on small-scale enterprises in Ghana,” Small Enterprises and Changing Policies: Structural Adjustment, Financial Policy and Assistance Programmes in Africa, IT Publications, London, 1993.
GSS, Integrated Business Establishment Survey, Regional Spatial Business Report, Ghana Statistical Service, Accra, Ghana, 2016.
D. L. Birch, “The Job Generation Process, Final Report to Economic Development Administration, Cambridge,” MA Program on Neighborhood and Regional Change Google Scholar, 1979.
E. Dogan, M. Q. Islam, and M. Yazici, “Firm size and job creation: evidence from Turkey,” Economic research-Ekonomska istraživanja, vol. 30, no. 1, pp. 349-367, 2017.
M. Ayyagari, A. Demirguc-Kunt, and V. Maksimovic, Firm innovation in emerging markets: The roles of governance and finance: The World Bank, 2007.
T. Beck, A. Demirguc-Kunt, and R. Levine, “SMEs, growth, and poverty: cross-country evidence,” Journal of economic growth, vol. 10, no. 3, pp. 199-229, 2005.
C. E. Liedholm, and D. C. Mead, Small enterprises and economic development: the dynamics of micro and small enterprises: Routledge, 2013.
M. Peden, R. Scurfield, D. Sleet et al., "World report on road traffic injury prevention," World Health Organization Geneva, 2004.
P. Stein, T. Goland, and R. Schiff, “Two trillion and counting,” International Finance Corporation and McKinsey & Company, 2010.
A. B. Bouazza, “Small and medium enterprises as an effective sector for economic development and employment creation in Algeria,” International Journal of Economics, Commerce and Management, vol. 3, no. 2, pp. 1-16, 2015.
A. De Massis, F. Frattini, J. Kotlar et al., “Innovation through tradition: Lessons from innovative family businesses and directions for future research,” Academy of management Perspectives, vol. 30, no. 1, pp. 93-116, 2016.
A. S. Saleh, P. Caputi, and C. Harvie, “Perceptions of business challenges facing Malaysian SMEs: some preliminary results,” 2008.
D. Keeble, and S. Walker, “New firms, small firms and dead firms: spatial patterns and determinants in the United Kingdom,” Regional studies, vol. 28, no. 4, pp. 411-427, 1994.
P. Reynolds, D. J. Storey, and P. Westhead, “Cross-national comparisons of the variation in new firm formation rates,” Regional studies, vol. 28, no. 4, pp. 443-456, 1994.
D. Keeble, P. Tyler, G. Broom et al., Business success in the countryside: the performance of rural enterprise: HMSO, 1992.
D. Smallbone, R. Leig, and D. North, “The characteristics and strategies of high growth SMEs,” International Journal of Entrepreneurial Behavior & Research, vol. 1, no. 3, pp. 44-62, 1995.
G. J. Mason, “Stereotypies and suffering,” Behavioural Processes, vol. 25, no. 2-3, pp. 103-115, 1991.
D. Smallbone, D. North, and C. Kalantaridis, Growth and survival of small rural manufacturing firms: [np], 1997.
E. Aryeetey, A. Baah-Nuakoh, T. Duggleby et al., Supply and demand for finance of small enterprises in Ghana: The World Bank, 1994.
Y. Wang, “What are the biggest obstacles to growth of SMEs in developing countries?–An empirical evidence from an enterprise survey,” Borsa Istanbul Review, vol. 16, no. 3, pp. 167-176, 2016.
H. M. Osano, and H. Languitone, “Factors influencing access to finance by SMEs in Mozambique: case of SMEs in Maputo central business district,” Journal of Innovation and Entrepreneurship, vol. 5, no. 1, pp. 13, 2016.
B. Mundial, Doing business 2013: smarter regulations for small and medium-size enterprises: The World Bank, 2013.
N. R. M. Sallem, N. E. M. Nasir, W. Nori et al., “Small and medium enterprises: Critical problems and possible solutions,” International Business Management, vol. 11, no. 1, pp. 47-52, 2017.
H. Musa, and M. Chinniah, “Malaysian SMEs Development: Future and Challenges on Going Green,” Procedia-Social and Behavioral Sciences, vol. 224, pp. 254-262, 2016.
O. Olayinka, M. G. Wynn, and K. Bechkoum, “E-business Adoption in Nigerian Small Business Enterprises,” International Journal On Advances in Systems and Measurements, vol. 9, no. 3/4, pp. 230-241, 2016.
P. Pillay, “Barriers to information and communication technology (ICT) adoption and use amongst SMEs: a study of the South African manufacturing sector,” 2016.