An Analysis of the Determinants of business growth in Ghana: A study of Wa Municipal in the Upper West Region

Abstract

Sources of firm growth and development have received much attention in the field of research. These studies vary in content and perspective. Changes in the size of firms are therefore extremely important events in a firm’s demography. The growth of firms has consequences for employment and consequently economic growth. The objectives of this study are to explore the factors that affect business growth and the determinants of the size of business. The techniques used for data collection included questionnaires and interviews. Purposive sampling was employed to identify the sample. For robustness, both parametric and nonparametric methods were combined for the analysis. Further, simple regression analysis was used to ascertain the factors that affect the size of businesses. Correlation analysis was employed to examine the nature of the relationship between firm size and other variables. Furthermore, Pearson’s chi-square test of independence was also used in the study. The correlation analysis showed that business age had a positive and statistically significant association with business size. The regression analysis revealed that business age and record keeping had significant impacts on business size. For policy, business start-ups should be encouraged supported to survive over time.

Keywords: Business size, Business age, Ghana

JEL Classification: C21, D22, L25, M21