Exploring Small and Medium-Scale Enterprises Intention to Utilize the YouStart Initiative in the Sunyani Municipality
Chapter One
OBJECTIVES OF THE STUDY
The main objective of this study is to appraise the empowering of small and medium-scale enterprises for sustainable economic development specially selected SMEs in Sunyani Municipality.
Other objectives of the study include;
- To determine the adequacy of science and technological facilities empowered to operators of small and medium scale enterprises.
- To identify the training facilities (including research) provided for small and medium-sized enterprises in the form of
- To assess strategies built by YouStart Initiative through empowerment in meeting resources (finance and non-finance) requirements of small and medium scale enterprises for sustainable economic
- To investigate how the variables of the enabling environment could be optimally combined as empowerment in meeting expectations of small and medium-scale
- To identify control measures taken by the YouStart Initiative in empowerment against the wasteful competition by small and medium-scale
- To make recommendation based on the findings of the Study.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
SMALL AND MEDIUM SCALE ENTERPRISES DEFINED
Business is any purposeful -activity that involves the use of human and non-human resources towards the achievement of set goals and objectives. Actually there is no one generally accepted definition of small and medium scale enterprises. This is because different authors and scholars have come up with different definitions and meaning of small and medium scale enterprises. According to Owualah (1999:6) small and medium scale enterprises, are businesses with total investment (including land and working capital not exceeding N5O00 and/or whose annual turnover did not exceed N5 million. However, Owualah (1999), noted that since 1993, the Central Bank of Ghana (CBN) has redefined them as firms whose total cost excluding cost of land but including working capital is above Ni million but not exceeding N10 million. Thus, small and medium scale enterprises, here are known for the special feature in their size, capital outlay and managerial capabilities.
In the opinion of Zenith Economic Quarterly (2005) small and medium scale enterprises, for the purpose of revised Guidelines for the small and medium Enterprises Equity Investment Scheme (SMEEIS) is defined as any enterprise with a maximum asset base of N500 million (excluding land and working capital), and with no lower or upper limit of staff. This definition, according to them is subject to review by the Bankers‘ Committee ‗from time to time. By this definition, small and medium scale enterprises of today may be different from the one of yesterday and tomorrow.
From the above definition, small and medium scale enterprises could be said to have the following features;
- Fewnumbers of employees (that is the number of employees is not greater than fifty (50)
- Lowamount of investment and annual business turnover
- Smallin size within the (that is they have small market share which, does not dominate its relevant market segment)
- Managers are owners (that is, it is an independent business which is managedby its owners)
- Small and medium scale enterprises are generally labour intensive (that is,technique of production is usually labour rather than machine). As a way to empowering small and medium scale (entrepreneurial development) Balogun (2002:23) advised that there should be consistent consultations of government and entrepreneurs who form the bedrock on policies and programmes. It is believed here that freedom to air their problems (SMSE) will go along way to solving them.
CHAPTER THREE
RESEARCH METHODOLOGY
RESEARCH DESIGN AND INSTRUMENTATION
For purpose of this study the research was designed to collect effective and relevant information from the staff of selected SMEs in Sunyani Municipality by using questionnaires and personal interview techniques. The major data collection instrument to be use is the questionnaire. It will be structured with a four point likert scale to determine responses to the objective of the study. The study is set to answer (10) ten questions formed in chapter one.
Basically the questions will be simple and multiple choices that will seek answers from top, middle and low level staff. Twenty (20) questions with be drawn in the questionnaire. The stakeholders of the selected SMEs will also be sampled for interview. The use of random sampling in this study is as given in Ezejule and Ogwo (1990:43).
RELIABILITY AND VALIDITY OF TEST INSTRUMENTS
In a research study of this nature, the reliability of the instrument used in collecting data is of apparent importance. The reliability of a test is measured by the consistency with which it produces the same result. A liability test will yield the same answer each time it is given to the same or compatible population provided that the relevant characteristics of the have not been changed. While validity is a measure of an instrument exactly what ought to measure.
For the purpose of establishing the reliability and validity of the instruments, about thirty of the instruments, will be ire-tested on respondents of parallel institution and this will be repeated with same number of respondents. The instrument will be later recovered, collected and analyzed using split half and correlation techniques through the medium of Pearson product moment correlation method. Resultantly, correlation coefficient of 0.960 will be obtained. On the strength of this parameter, the reliability and validity of the instrument will be established. Equally, the content and construct validity will be considered crucial to the pilot test. The instrument will therefore be considered suitable for data collection.
POPULATION AND SAMPLE
A population is made up of all conceivable elements, subjects or observation relating to a particular phenomenon of interest of the research. A population of this study will comprises all small and medium scale enterprises in Sunyani Municipality metropolis as well as their stakeholders. In order to achieve representative size of the population for the purpose of‘ data collection, the population was initially stratified into SMEs in sector of Ghanaian economy. Thereafter, random sampling technique was used to arrive at a sample of (105) one hundred and five respondents to be measured.
The determination of the sample size was done with a Pilot programme in order to determine the willingness of the respondents to participate in survey. The effect was that Six (6) out of the Ten (10) respondents showed their willingness to participate in the study, the remaining Four (4) declined.
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
This chapter deals with the presentation of data collected from the field research. The objective of the research is to carry out a designed work to investigate hidden facts so as to make inferences from the data gathered for the purpose. The researcher used the one hundred five available data collected within reach to arrive at a comprehensive study of an appraisal of the Empowerment of small and Medium Scale Enterprises for Sustainable Economic Development especially selected SMEs in Sunyani Municipality.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION, RECOMMENDATIONS AND SUGGESTIONS FOR FURTHER STUDIES
SUMMARY OF FINDINGS
This study is about the Empowering of Small and Medium Scale Enterprises for Stainable economic development in Ghana especially. Selected SMEs in Sunyani Municipality Metropolis. Efforts were made to assemble as much as possible data sufficient to achieve a rational conclusion. In the course of the study several findings were made. The major ones were:
That, resources available for empowering SMEs in the Ghanaian economy may not be considered adequate
That stringent regulatory controls of government on SM Es may affect their growth and development.
That inability of SMEs to loans and other financial assistance may cause their failure.
That absence of research and development on the activities of SMEs may affect their growth and development.
That information technology play significant role in the practice of empowerment programm for SMEs in Ghanaian economy.
However, a summary of the research hypotheses show the following:
That empowering small and medium scale enterprises does not result into sustainable economic development and growth
That the enabling environment as empowered by YouStart Initiative other agents for small and medium scale enterprises does not make them (SMEs) successful.
That the adoption and use of technology infrastructure as empowering tool does not determine the profits making ability o[ small and medium industries.
CONCLUSION
The results of the tests showed that the data obtained and responses differ from the expected outcomes. As such, hypotheses tested had the nulls as accepted and the alternatives rejected.
Based on this consideration and the fact that there are inadequacies in the size, operations and objectives of small/medium- scale enterprises, hence variation in their contributions and empowerment for stainable development in Ghana. The study encouraged that quality services delivery be adopted. and practice by organizations (SMEs) to facilitate transitions and efficiency which could be the result of an empowerment programme. It has, therefore been established that a timely and accessible resources be made available to SMEs through government institutions as an empowerment programme. However, the study revealed that every encouragement in the form of enabling environment (empowerment) be provided by YouStart Initiative to SMEs to accelerate economic growth and development. This is because SMEs as engine of development of an economy require regular assistance and control for optimal performance. Similarly, it should be noted that small and medium scale enterprises accordingly may not be able to work efficiently unless supported by information technology, government corporate firms and international agencies.
The study examined empowering of small and medium scale enterprises in Ghanaian economic development. In doing this, some relevant literature was reviewed showing discussions of authors and other contributors of articles on empowerment of small medium enterprises (inadequate infrastructures, government rigid laws and policies, competltwn from multinationals, non existing of enabling environment, etc.) of small and medium scale enterprises.
Thus, chapter two specifically discussed the following; the origin of SMEs in Ghana, the concept of SME defined, SMEs role in Ghanaian economy, financial requirement of SME in Ghana, objectives and targets of SMEs policy, regulatory controls and assistance of SM E, etc.
RECOMMENDATIONS
This research work has the following recommendation to make;
Every effort should be given to discourage the difficulties of access to funds set aside for SMEs by financial institutions or the direct loans occasionally extended to them by the government by way of empowerment for stainable development.
Regular training and retraining should be provided, for SMEs to reduce the perennial problems of inadequate managerial capacity and poor quality services and products. To this regard, facilities should be adequate for training and developing the human resources (managers) needed in translating business in the right question in an empowerment for stainable development.
The enabling environment by YouStart Initiative to small and medium scale enterprises should always be complete in any particular circumstance. In other words, transport, electricity, water, communication; educational infrastructure, etc should be available or adequate in all times on any small and medium scale enterprises empowerment for stainable development.
Hostility in an operating environment (by YouStart Initiative, or communities) should be discouraged to make the effects and expectation of small and medium scale enterprises realistic in for stainable development empowerment for stainable development..
Subsidies should be given to SMEs by concern organizations to reduce their high costs of energy, which are imported for use in manufacturing. In other words, costs of installation and use of technology in small and medium scale enterprises should be made affordable for stainable development. + Standard in services and production by SMEs should always be in conformity with local and international demands for stainable economic development.
Unregulated competition and inconsistencies in policies and programmes of SM13s should be regulated and control by YouStart Initiative and her agents in an empowerment or stainable development.
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