Effect of Globalization on Management of Small and Medium Enterprises: A Case of Some Selected SMEs in Ghana

Abstract

The effect of globalization on small and medium enterprises (SMEs) has received a lot of attention in international circles in the past few years. One of the reasons for the international focus on SMEs is that these firms make significant contributions to the economies of both developing and developed countries. The theories reviewed were: how globalization affects SMEs positively and negatively and the importance of globalization. The specific objectives of this study were: 

• To determine the effect of globalization on small and medium enterprises. 


• To determine the benefit of globalization on the management of SMEs. 


• To access the factors that hinder SMEs' global integration. 


• To identify the barriers to the success of SMEs. 

A descriptive survey design was used. The target population of the study was fifty (50) respondents of the managers and owners of SMEs.

This study was carried out using interviews and questionnaires. The results show that the effect of globalization on SMEs has made their resources more efficient and effective, creating many investment opportunities, operating globally, and having more global competition. It was found that the benefit also helps the SMEs management upgrade and adapt to new strategies and always find innovative ways of promoting the firm's market. It was found that key challenges include: High competition in the market, especially big/ foreign organizations, and small businesses are still hindered by the lack of technological implementation, lack of managerial experience, capacity and lack of knowledge about the market. Further, it was found that there is also a barrier to the success of SMEs that lack government support, experience with foreign markets, and information about the markets. High cost has made a lot of entrepreneurs not to enter the big market with high growth.