Entrepreneurship and Job Creation for Sustainable Development in Ghana: The Role of Government as an Arbiter in Shaping the Institutional Environment

Abstract

Studies indicate that 80% of jobs in Ghana are in the informal sector, while entrepreneurs create the majority of these informal jobs. Studies further affirm that Small Medium Enterprise entrepreneurs make up about 94% of Ghana’s industrial sector. Past and current governments view the entrepreneur as the solution to weak economic performance and job creation. What remains a challenge though is a better understanding of the factors that determine entrepreneurship and the environment that motivates and supports the growth of entrepreneurs. This paper argues that knowledge of the primary catalyst for entrepreneurship is essential for understanding the microeconomic foundations that will lead to growth in the Ghanaian economy. The paper concludes that fostering the private sector and entrepreneurship depends on a supportive business environment, which makes it not only important, but also urgent for regular revision of incentives and policies that are likely to attract genuine entrepreneurs and businessmen and women.

Keywords: Entrepreneurship, Entrepreneurs, Job creation, Institutional environment, Private sector.