Factors hampering the growth of SMEs in the pharmaceutical industry in the Kumasi Metropolis

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July, 2015
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The contribution that small businesses make towards the economies of the developing countries like Ghana emphasizes the importance of the small business sector. Regardless of the above roles most of these SMEs in the pharmaceutical industry are now collapsing as a result of not performing creditably well. It is in line with this that the study identifies the factors hampering the growth of SMEs in the pharmaceutical industry. A sample size of 237 respondents from SMEs in the pharmaceutical industry in Kumasi metropolis was determined to be studied in order to generalize their responses to mean that of all the workers, managers and owners of these SMEs. The study combined survey and case study methods of data collection and analysis. The study revealed among other things that: low level of education among workforce, lack of qualified personnel, high percentage of self-financing of SMEs, lack of access to credit, importation and dumping of substandard pharmaceutical products, as challenges affecting the SMEs in the pharmaceutical industry in Kumasi Metropolis. In view of challenges identified during the study, the researcher recommends; the setting up of a SMEs focused bank, banning of all the imported and dumped substandard pharmaceutical products, outsourcing of professionals to manage the accounts and documentation of the pharmacies, education on venture capital financing and training of the workers of the pharmacy. Finally, effective implementation of the recommendation could lead to growth of the SMEs in the Pharmaceutical industry in the country and eventually result in creation of employment as well as poverty reduction in Ghana and boosting the distribution of pharmaceutical products.
A thesis presented to The School of Business, Kwame Nkrumah University of Science and Technology, in partial fulfillment of the award of a Master of Business Administration Degree in Strategic Management,