ENTREPRENEURSHIP AND THE GROWTH OF SMALL BUSINESSES IN TAMALE METROPOLIS OF NORTHERN REGION OF GHANA

Abstract

This study was conducted to ascertain the factors that affect the growth of small business in Tamale Metropolis. The study covered one hundred and forty (140) entrepreneurs in the Tamale Metropolis. The study employed both Secondary and Primary sources of data. The Secondary sources of data were books, articles, reports and peer review journals. The Primary source of data was gathered through the use of instruments of questionnaires. The research was cross-sectional in approach and descriptive in content with the use of both quantitative and qualitative methods to classify the variables. The analysis was done with the use of the Statistical Package for Social Sciences (SPSS). The major findings of the study are; with the internal factors, the study found that 79.3% of the respondents agreed that strategic management affect the growth of their business negatively, followed by marketing 78.6%, and then financial management 72.8%. With regards to the external factors the study found that infrastructural facilities comprising electricity (85.7%) and telecommunications (52.0%) have negative effects on small businesses in Tamale. Economic variables comprising high inflation rate (90.0%) and government tax (82.9%) were also found to have negative effects on their businesses; also the study revealed that 55.0% of the respondents asserted that the influx of foreign products has a negative impact on their business operations. The study recommends that, there must be an appropriate financing scheme for entrepreneurs in Tamale Metropolis. This should include flexible interest rate and the granting of long duration for the repayment of loans. More so technical institution must be established purposely to train the youth in self employable skills.