Internationalization of small and medium scale enterprises (SME’s) in Ghana, strategies and the impact on the economy

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Internationalization has been embarked upon by companies globally and has brought about an advanced form of technology as well as co-operation and co-ordination among nations in the world as a whole. One fact that remains clear is that, even the developed industrialized countries who have concentrated in serving only the domestic markets have reached the point where internationalization has become the ultimate opportunity as supply, in terms of production capacity exceeds demand. Whilst some companies never take the first step to go abroad, the question is what factors are most likely to encourage companies to embark upon its international markets and what advantages and challenges seem to fall in their way thereby serving as deterrents to successful ventureship? The study sought to investigate the kind of problems that Small and Medium Scale Enterprises (SMEs) in Ghana face in their bid to go international, the mode of entry into the foreign market, the assistance and restriction from political policies and benefits obtained by these companies. The study also looked at the reasons why SMEs go international. Recommendations and alternative solutions to some problems encountered by these Ghanaian based companies who may want to go abroad have been dealt with in the study. As Ghanaian companies try to improve upon their performance in terms of profit making and take the advantage of economies of scale among other things, the entrepreneur may end up producing more in which case demand may exceed supply and warrant the need for internationalization.
A thesis submitted to the Board of Postgraduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfilment of the requirements for the award of Master of Business Administration