Barriers to Performance of Small and Medium Enterprises in Ghana

Abstract

The main aim of this conceptual study is to show the findings on issues that Small and Medium Enterprise (SMEs) in Ghana face in relation to their performance and development in its various task performed. The study was centred on semi-structured interview questionnaires that were conducted among SMEs in general which was supported by existing literature on the performance and growth of SMEs. This empirical study used relatively small number of SMEs since it is an ongoing Ph.D study. The population size will be increased in the main study. The use of semi-structured interview questionnaires and the critical study of various literature has resulted in determining and defining the dimensions of the growth/development issues or barriers to SMEs. This evaluation will empower the SMEs to get an in-depth understanding concerning the accurate development to issue with likely reasonable measures. The outcome of the study shows that both the internal and external factors pose a problem. Where the external factors include getting the funds, the effect from the foreign markets and some institutional regulations affects SMEs. The technical know-how and new product ideas are lacking, and this was taken as some barriers to SMEs performance or development resulting from the feedback and literature.  At the end of the study, it made evident that SMEs come across performance barriers, and this is ascribed to both the internal and the external factors influencing the business operations. This study introduced an important qualification into understanding and indicating the barriers that affects the SME performance that leads to it growth or development.