Management problems of small scale businesses: a case study of selected firms in the Bantama Sub-Metropolitan District

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It is an acceptable fact that the private sector is the engine of growth of the economy of every country. In the Ghanaian economy, the private sector is dominated by small scale businesses which undertake various business activities including manufacturing, services, construction, agriculture, retail and wholesale businesses. The study focused on the management problems facing the small scale businesses particularly in the manufacturing, service and retail sectors in the Bantama sub- metropolitan district within the Kumasi Metropolitan Assembly (KMA). Data were collected from both primary and secondary sources. The findings of the study revealed a number of important issues. In the first place, it showed that a large number of the small scale businesses have still not registered and therefore, the National Board for small scale Industries (NBSSI) which is the main consulting institution established by the Government to provide support services for the businesses has still not obtained a full list of small scale businesses for the needed attention. it also revealed that the performance of the small scale businesses in terms of levels of employment, building of working capital and improvement in profit levels have not been encouraging. The study revealed various management problems, predominantly in the area of planning and control, and organising and directing to some extent. These problems have had serious impact on the businesses as they have affected the performance of the businesses and have limited their ability to expand. The study revealed that even though there are various support schemes in the country in the form of institutions such as NBSSI, EMPRETEC, PEF, MDPI among others to provide the necessary support for the development of Small Scale Businesses, a lot of the businesses have still not had any access to these schemes due to either ignorance on the part of the businesses concerned or inability of the institutions to reach out to most of the businesses. The study offered a number of recommendations with regard to the appropriate management practices that may be adopted to improve the operations of the Small Scale Businesses. It also suggested the need to streamline the roles of the various support schemes in promoting the development and growth of the Small Scale Businesses.
A thesis submitted to the Board of Postgraduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfilment of the requirement for the award of the Degree of Master of Arts, 1999