The Socio-Economic Contribution of Rural Small-Scale Industries in Ghana

Abstract

The study looks back into the years to assess the contribution of Small-Scale Industries sector in times of economic difficulties of a country. Ghana went through very difficult phase of her politico-socio-economic development during the period 1970 to 1996. During which time the economy experienced contraction, distortion and acute shortages of what became known as “essential commodities” on the market. RSSIs did not only become prominent in the lives of the people by filling the void created by the collapsed medium and large-scale industries but also created jobs, fostered entrepreneurial development, offered employment, and generated incomes among others for large number of people particularly those in the rural areas.  The data used in this study form part of data collected from population of firms in the SSI sector through the use of a structured questionnaire survey administered in settlements in the Mfantseman District in the Central Region of Ghana. A total of 215 proprietors were interviewed.  The study showed that the SSI sector covers a wide range of activities and forms a very important part of the rural off-farm activities. Internal skill development accounts for higher percentage of the total entrepreneur development in the survey and that the formal sector does not play any major role in skill development of SSI sector. The survey results reported in the study, suggests that the RSSI sector has a strong potential for employment creation plays a pivotal role in the politico-socio-economic lives of the people and can serve as a means for poverty alleviation in the rural areas.

Key words: Rural Small-Scale Industries, Entrepreneurial development; firm formation; employment creation; income generation; forward and backward linkages