Promoting Micro and Small Scale Industries in Ghana For Local Development: A Case Study of the Rural Enterprises Project in Asante Akim South District

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There are a lot of donor funds inflows into developing countries with the aim of helping the entrepreneurial poor. The Rural Enterprises Project (REP) is one of such projects implemented in Ghana, funded by external donor funds. The project has been implemented 66 Districts and Municipal Assemblies in the country from 2003 to 2011. The research objectives for the study were: to examine the role of Micro and Small Scale Enterprises in local development; to assess the strategies used by the Rural Enterprises Project II in Developing Micro and Small Scale Enterprises; to assess the outcomes of the Rural Enterprises Project II on development of Micro and Small Scale Enterprises in the Asante Akim South district and to identify challenges faced by Micro and Small Scale Enterprises in the Asante Akim South District. A sample size of 102 made up of 92 micro and small scale entrepreneurs and 10 staff of stakeholder institutions was selected. Stratified and purposive sampling was used in selecting the respondents. The study revealed among other things that micro and small scale enterprises are a key source of employment for the youth in the AASD, as 84.6% of the MSE operators interviewed were within the age range of 20 -40 years. It also came to light that project institutional structures and activities have been mainstreamed into the local government system. The REP II spearheaded the establishment of the Business Advisory Centre and the Sub Committee on Micro and Small Enterprises Promotion in the AASD. High cost of inputs and inadequate funds were identified among others as the challenges faced by Micro and Small Scale Enterprise operators. It is recommended that the Government of Ghana pursue the renewal of the third phase of the Rural Enterprises Project, so that apart from the 66 districts that have benefited from the project’s services, other districts in the country can also benefit from the project services.
A Thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Commonwealth Executive Masters of Business Administration,