A Study into the Factors Affecting Performance of SME’s in the Construction Industry in Ghana: A Case Study in Accra Metropolis
SMEs are avenues for wealth creation, development of innovation, providing employment for people and substantially contribute to the economy of nations. The aim of the study is to explore the factors affecting the performance of SMEs in the Ghanaian construction industry. The study employed questionnaire survey as the medium for sourcing primary data and extensive research on literature to identify factors affecting the performance of SMEs. The collected data was analyzed using descriptive and one sample t-test techniques of the Statistical Package for Social Scientist (SPSS).The sample size was 50 however, 42 responding to the survey representing 84% of the sample size. It was identified from literature that 27 factors basically affect the performance of SMEs. Only 19 of the factors were recognized by the respondents notwithstanding that, the highly regarded challenges from the 19 factors were lack of cooperation between SMEs and large firms, challenges in accessing working capital, inadequate policies by governments, high costs of materials, macroeconomic instability, Limited access to contracts, and low patronage to local products. It was realized from the analysis that, people are more conversance with the traditional methods (bank) of financing firm whilst venture capital was the least to be recognized by these personnel occupying vital positions in their respective firms. Moreover, Angel financing was not recognized by the respondents which indicates that, the idea for establishing Angel fund is not known to the masses. In addition, SMEs employ more unskilled labour than skilled labour and their employment is on contractual basis. It is recommended that extensive education should be organized for SMEs to enlighten them on the various avenues available to solicit funds such as the Venture capital and Angels rather than the traditional systems.
For more information contact author
Samuel Boateng Bamfo
College of Transportation and Civil Engineering, Hohai University, China.
Department of Building Technology, Kumasi College of Architecture and Planning, Kwame Nkrumah University of Science and Technology, Ghana.
E-mail: [email protected]
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Books capital constraints construction development economy employment financing government Innovation instability institutions macroeconomic performance policies Science Small and Medium Scale Enterprise (SMEs)