How Has Managerial Incompetence Contribute to Small Scale Enterprise in the Country
Contents
1.0 Introduction 1
1.1 Background to the study 1
1.2 Problem Statement 3
1.3 Objectives of the Study 4
1.4 Research Questions 4
1.5 Significance of the study 4
1.6 Scope of the Study 4
1.7 Limitations 5
1.8 Organization of The Study 5
Chapter 2 6
2.1 Small Business Defined 6
2.2 Challenges of Small Business 6
References 8
1.0 Introduction
Many businesses begin operations on a shoestring, and some entrepreneurs never seek bank loans or other outside funding. However, many new and established businesses lack the managerial competences needed to run these businesses. Without the relevant managerial skills, many entrepreneurs find it difficult or impossible to successfully manage their businesses or to launch their businesses and grow it to the levels that they require. Some business owners need bank loans to finance the growth of their companies. Many businesses especially SMEs lack the key managerial skills and competences needed to run a business while others may need bank loans just to keep the doors of the business open. Some businesses need little or no equipment, while others, such as retail outlets and restaurants, will require large outlays for equipment at every phase of operations.
1.1 Background to the study
Small and Medium Enterprises (SMEs) have been acknowledged as the live wires through which the developmental aims of developing nations can be realized. Small and Medium Enterprises (SMEs) are found in both urban and rural areas, and cover a wide spectrum of economic activities which includes Small Scale Manufacturing Enterprises (SSMEs). According to the Organization for Economic Cooperation and Development (OECD, 2005) survey, estimate has it that, SMEs contribution to total Gross Domestic Product (GDP) is at about 22 per cent. Ghana has a relatively long history of government initiatives to promote and finance SMEs. However, managerial Incompetence remains the major constraint to SME development in the country
1.0 Introduction 1
1.1 Background to the study 1
1.2 Problem Statement 3
1.3 Objectives of the Study 4
1.4 Research Questions 4
1.5 Significance of the study 4
1.6 Scope of the Study 4
1.7 Limitations 5
1.8 Organization of The Study 5
Chapter 2 6
2.1 Small Business Defined 6
2.2 Challenges of Small Business 6
References 8
1.0 Introduction
Many businesses begin operations on a shoestring, and some entrepreneurs never seek bank loans or other outside funding. However, many new and established businesses lack the managerial competences needed to run these businesses. Without the relevant managerial skills, many entrepreneurs find it difficult or impossible to successfully manage their businesses or to launch their businesses and grow it to the levels that they require. Some business owners need bank loans to finance the growth of their companies. Many businesses especially SMEs lack the key managerial skills and competences needed to run a business while others may need bank loans just to keep the doors of the business open. Some businesses need little or no equipment, while others, such as retail outlets and restaurants, will require large outlays for equipment at every phase of operations.
1.1 Background to the study
Small and Medium Enterprises (SMEs) have been acknowledged as the live wires through which the developmental aims of developing nations can be realized. Small and Medium Enterprises (SMEs) are found in both urban and rural areas, and cover a wide spectrum of economic activities which includes Small Scale Manufacturing Enterprises (SSMEs). According to the Organization for Economic Cooperation and Development (OECD, 2005) survey, estimate has it that, SMEs contribution to total Gross Domestic Product (GDP) is at about 22 per cent. Ghana has a relatively long history of government initiatives to promote and finance SMEs. However, managerial Incompetence remains the major constraint to SME development in the country
References: Abor, J and Quartey, P (2010) Issues in SME Development in Ghana and South Africa International Research Journal of Finance and Economics ISSN 1450-2887 Issue 39 (2010), Euro Journals Publishing, Inc. London. Business and Financial Times (2003) Change SME Financing, Business and Financial Times Accra, 25th July. Boapeah, S.N. (1993), “Developing Small-Scale Industries in Rural Regions (cited 3 January, 2010) Available from