THE INFLUENCE OF SMALL AND MEDIUM ENTERPRISES ON THE SOCIO-ECONOMIC DEVELOPMENT OF ENTREPRENEURS IN THE TAMALE METROPOLIS

Abstract

The meaning of SMEs are differently explained from one country to another. This implies that, SMEs has no single or unique definition (Ackah & Vuvor, 2011). However, the meaning/definition of SMEs are grounded on three major condition, these are; the nature (size) of business, the number of people engaged in the day to day administration of the business and the capital used in the operation of the business set up. In the context of Ghana, SME can be explain as a business setup or firm that has less than 10 workers and has plant and machinery (land, buildings, and vehicles included), not exceeding GH¢10 million in value (NBSSI nd.). This study used quantitative method of data collection and analysis. The quantitative approach is usually employed to test theories and involves an inferential method of theory and research (Depieri, 2015). This research is nonexperimental research and a case study was used as the research design. The research setting was in the Tamale Metropolis in the Northern Region of Ghana and SMEs operators were the target population. The study used a questionnaire as the main tool for data collection. It has a sample size of 86 respondents to the research questions. The researcher used stratified and simple random sampling techniques in determining the sample size. Data were analysed using simple percentages and frequencies and Statistical Product for Service Solution (SPSS) version 23.0. One important findings of the study was that, the level of education of respondents has a positive relationship with business registration and management in the Metropolis. The study recommended the reduction of taxes and interest rates from banks and other financial institutions. The study concludes among other things that SMEs in the Metropolis are dominated by females and the youth of which majority of them are less or non-educated which has led to many of them not keeping business records in other to access their growth performance.