THE ROLE OF SMALL AND MEDIUM SCALE ENTERPRISES FOR ECONOMIC GROWTH: A CASE STUDY OF ZEBILLA IN THE BAWKU WEST DISTRICT

Abstract

The backbone of every economy is the informal sector however most employment opportunities in Ghana are largely hinged on the private sector . Hence, the contribution the sector makes to Ghana's economic development through job creation cannot be underestimated. The role of small and medium scale enterprises for economic growth was undertaken to find out how SME sub-sector in Zebilla has performed and its impact on the economic growth of the country .. Specifically this study intended to figure out : how profitable SME business is ; whether infrastructural development could be attributed to the presence of SMEs; if significant number of people are employed within the SME sector ; whether the SME market has attracted banks and financial institutions with increase in loans and incentives ; whether there is needed inputs to speed up SME activities and if there is need for the government to encourage and develop more opportunities for SMEs in Zebilla . A total of 100 SMEs were randomly selected from Bawku West District . A questionnaire was constructed and distributed to the selected SMEs. The responses were collated and analyzed using Statistical Package for Social Sciences (SPSS) . The study revealed that SME was not a significant employer of labour in the district due largely because of the fact that entrepreneurs use family labour to minimize cost. Onion cultivation was dominant in the area and appeared profitable as well . However, SME did not attract the needed infrastructural development like tarred roads, silos and irrigation dams for all year round farming to the area.