Investigating Factors That Influence the Growth of SMEs in Ghana: A Case Study of Makorla Market

Abstract

It is an undisputable fact that SMEs are important to economic growth and are essential to generate employment. This study establishes the factors that influence the growth of SMEs in Ghana. The study adopted a factor analysis and linear regression methodology to analyze the data. The study employed the random sampling system. The study found out that, growths of SMEs are influenced by five major factors which are family factors, technological factors, experienced, location and human resource. Out of these five factors, three were significantly related to the growth of SMEs. These three factors are experience, human resource and technology. The study concluded that family, experience, location, technology and human resource are factors that influence the growth of SMEs in Ghana. The research therefore recommends that, the owners should take into consideration the training of employees, provision of incentives and also employ highly experienced personnel to manage the affairs of SMEs to improve upon their managerial skills thereby leading to the growth of the business.

Keywords: Small and Medium Scale Enterprises, Factor Analysis and Ghana

DOI: 10.7176/EJBM/11-3-24