Enhancing the performance of small-scale enterprises through improved capitalisation and management; selected case - studies in Kumasi

Thumbnail Image
Journal Title
Journal ISSN
Volume Title
The non-availability of adequate credit for small-scale enterprises is identified as an impediment to the growth and expansion of the sector. A workshop organised by the National Board of Small-Scale Industries (NBSSI) and the Consultant Management Enterprises (CME) in Accra enumerated that the lack of managerial skill, adequate capital and poor credit history has made it difficult for small-scale enterprises to access institutionalised credit. These management problems formed the basis of this study which aimed at analysing the complex nature of problems associated with small-scale enterprises access to, and utilisation of, adequate financial credit. To this effect, four small-scale enterprises selected in Kumasi were studied focusing on their production processes, capital acquisition, human resource development, budgetary and accounting practices. The study showed that access to banking credit by small-scale enterprises have been hampered by bank demands for collateral securities, business plans and relatively high interest rates. This scenario, contrasts with systems operated by non-banking financial institutions (NBFIs) whose operations are mostly targeted at improving the small-scale enterprises sector. However, budgeting and bookkeeping practices were found to be lacking in terms of internal transactions recording. This has existed in the face of training programmes organised by numerous small-scale enterprises support institutions. Policy implications and recommendations, therefore, targeted the strengthening and expansion of small enterprise support institutions so as to allow for the consolidation and subsequent acceleration of gains made especially in the 1990s. Small-scale enterprises were also identified as having potentials in the export markets. It is the view of the author that the adoption of the recommendations made in this report can considerably help ameliorate the hindrances confronting the full realisation of the potentials embedded in small-scale enterprises in the country.
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 Science in National Development Policy and Planning, 1997