SME Essay

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2.6 Prospects of Small and Medium Scale Enterprises in Ghana
Aryeetey & Ahene (2004) have observed that most large companies have their roots in SME’s; they started out as SMEs before experiencing expansion. This implies that today SME’s are tomorrow’s large corporations. Therefore, SMEs need to be nurtured to ensure their growth and to make sure that they succeed in making the desirable impact of promoting and sustaining economic growth and development in Ghana.
Moreover, SME’s are generally seen to be the gem for indigenous entrepreneurship and generate many small investments, which otherwise would not have taken place. Therefore, Ghana needs to further facilitate and promote the growth and development of its private sector; as the accepted engine of growth. This can be done through creating a congenial and convivial environment that is favorable to the growth of SMEs by strengthening the factors that promote the growth and expansion of businesses and through resolving the critical problems threatening the existence and advancement of SME’s (Chu, Kara & Benzing, 2008).
Despite the prospects, potential and opportunities that exist for SME’s in Ghana, the dismantling of trade and other barriers through international trade treaties like the Economic Partnership Agreement (EPA) between EU and ACP/ECOWAS; through globalization the world has been transformed into a global village. As a result, SMEs in developing countries are struggling to survive under intense competitive environments emanating both domestically and internationally.
In developing countries like Ghana, there is a pressing need to provide an enhancing and enabling environment that is conducive for the growth and development of SMEs, so that they can adequately cause ...

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...nt access to credit by the poor just below or just above the poverty line may have negative consequences for SMEs and overall welfare.
It is argued that SME’s are financially sustainable and high outreach means to have a greater livelihood as well as having a positive impact on development because they guarantee sustainable access to income by the poor (Rhyme and Otero, 1992). The focus of this augment is that SME’s enhances the socio-economic well-being of the poor people by facilitating change or improvement in their lives which is reflected in their spending power and or living standards.
Zeller and Sharma (1998) argue that SME’s aid in making the difference between alleviating poverty and ensuring economically secure life. On the other hand, it can be recognized that SME’s tends to stabilize and increase income as well as tending to preserve and create jobs.

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