Tags: Frederick Douglass Research PaperAnnotated Bibliography Nursing TopicsEssay On Frederick DouglassDrexel Med School EssayRole Of Youth In Building Nation EssayDielectric Resonator Antenna Thesis
As indicated by OECD 2002, SMEs fast-changing technologies and globalising economies are putting increased pressures on firms to reorganise their structures to enhance adaptability and flexibility.Upgrading the skills of all types of employees is hence central to firm performance in SMEs which must be able to adapt quickly to evolving markets and changing circumstances, but which often have limited resources.
Limited access to finance remains a dominant constraint to small scale enterprises in Ghana.
Credit constraints pertaining to working capital and raw materials are often cited by small firm and these partly stem from the fact that SMEs have limited access to capital markets, both locally and internationally. SMEs have difficulties in gaining access to appropriate technologies and information on available techniques. This fact is ascertained by UNCTAD 2005 which notes that most SMEs also lack the technical know-how and financial resources needed to acquire state of the art technologies and equipment required to improve productivity and to become internationally competitive. Regulatory Constraints: Although wide ranging structural reforms have improved, prospects for enterprise development remain to be addressed at the firm-level.
Disclaimer: This work has been submitted by a student.
However, the National Board of Small Scale Industries (NBSSI) in Ghana applies both the fixed asset and number of employees’ criteria.
It defines a Small Scale Enterprise as one with not more than 9 workers, has plant and machinery (excluding land, buildings and vehicles) not exceeding 10 million Cedis.
While it is generally accepted that SMEs are important contributors to the domestic economy, not many governments have framed policies to enhance their contribution or increase their competitiveness (UNCTAD 2005).
Previously insulated from international competition, many SMEs are now faced with greater external competition and the need to expand market share.
From these definitions however, it would be prudent for purposes of this essay to note that the process of valuing fixed assets in itself poses a problem as continuous depreciation in the exchange rate often makes such definitions out-dated.
It is further noted that SMEs in Ghana can be categorised into urban and rural enterprises.