Promotion of small scale enterprises for rural development in Ghana: a case study of Sekyere West District

The study looked at the promotion of small-scale enterprises for rural development in Ghana: The case study of Sekyere West District. It identified the support services available to small scale enterprises in four selected settlements in Sekyere West District. The study also assessed the performance of these services, identified constraints with respect to the service delivery and made recommendations. The study followed three main procedures. First, literature on small-scale enterprises was reviewed. Second, on the basis of a hierarchy of settlements, questionnaire was designed and administered in four selected settlements using the exploratory approach. Promotion institutions were also interviewed. Third, data collected on the field was analysed and synthesised using theoretical tools such as SWOT Analysis, Input and Output Focused approaches of measuring performance. Descriptive statistical technique such as percentages was used and the results were also presented in the form of tables, graphs and figures. The study identified a total of 697 enterprises within the selected settlements. Entrepreneurial characteristics show that females dominate the sector. There is a general low level of education. Enterprises were established with positive motivation. Ownership pattern is dominated by sole proprietorship. Whereas agro based enterprises are more inclined towards the use of traditional technology, the wood based sector employs more modern technology. Infrastructure availability, which reflects the pattern of hierarchy of settlements, is generally low. Large proportions of enterprises rely on imported inputs. Own funds (42 per cent) constitute the major sources of funding with inadequate capital being the severest problem confronting them With respect to the assessment of performance of the support services, it was revealed that there is only one institution - Rural Enterprise Project (REP), which is actively involved in promoting SSEs activities in the district. The district assembly’s contribution is not much felt. Most of the promotion institutions are Urban biased, which targets enterprises with growth potentials. It was revealed that whereas the district assembly provides one facility (credit line) to SSEs, REP provides an integrated services such as entrepreneurship training, credit sourcing, management skills, technology transfer and so on. The results of the assessment of the support service indicate that performance has been effective. Targets set between 1995 and 1999 for REP have been exceeded, a lot more women have been reached than men. The impact of the project has been tremendous in that there is a high satisfaction level of about 85 per cent amongst the beneficiaries and good results have been recorded for learning and applying the skills received. It was also found out that trainer(s) have very good job knowledge, excellent team work, very good communication and interpersonal skills. The implication is that there is a positive relationship between the input and output variables. In the face of all this achievement, it is glaring from the study that the support service may be short-lived considering the fact that REP is externally funded. In addition to this problem, the support services face the challenge of low level of educational background of the intended beneficiaries. If the project is to have its desired impact, then the problem of low literacy should be addressed. Again; politics seem to be creeping into the service provision as some entrepreneurs who refuse to participate in the available service associate it with the ruling government. Among the recommendations made in order to sustain the support services are that the district assembly should make deliberate effort to promote the sector because it goes to complement on - farm activities. Again, it has also been recommended that, the project policy should be reviewed to include entrepreneurs engaged in on -farm activities so that the desired impact could be achieved. Greater collaboration should exist between promotion institutions, which have concentrated on - farm activities and those, which have concentrated on off -farm activities. It is believed that the complementary and collaborative efforts of institutions with differing targets will rather have maximum impact rather than isolated cases.

Source: KNUST