SUCCESS FACTORS FOR MICRO AND SMALL AGRIBUSINESS ENTERPRISES (MSES) – THE CASE OF GHANA

Abstract

Micro and Small Enterprises (MSEs) are consideredto be engines of economic growth worldwide. Their efficiencyand competitiveness is critical to the creation of employment,income generation and poverty reduction and thereby to generalgrowth of the economy. However, studies on MSEs inGhana have mainly focused on the financial performance withlittle or no attention paid to the contribution of environmentaland socio-demographic factors to entrepreneurial success.The data for this study was obtained from Micro and SmallEnterprises (MSEs) in some twenty districts across Ghana.A total of 2899 entrepreneurs were interviewed. A binary logitregression was used in determining the impact of socio-demographicand environmental factors on entrepreneurial businesssuccess. As shown by the results, the odds of business successincrease by 67% if the formal education period is extendedby one year. Supportive environmental factors also significantlycontribute to business success. This study recommendsa policy that will help improving access to market for MSEs.Policy makers should consider strengthening the potential ofinstitutional support in terms of market information deliveredby public institutions to enhance the business success of agribusinessentrepreneurs in Ghana.Micro and Small Enterprises (MSEs) are consideredto be engines of economic growth worldwide. Their efficiencyand competitiveness is critical to the creation of employment,income generation and poverty reduction and thereby to generalgrowth of the economy. However, studies on MSEs inGhana have mainly focused on the financial performance withlittle or no attention paid to the contribution of environmentaland socio-demographic factors to entrepreneurial success.The data for this study was obtained from Micro and SmallEnterprises (MSEs) in some twenty districts across Ghana.A total of 2899 entrepreneurs were interviewed. A binary logitregression was used in determining the impact of socio-demographicand environmental factors on entrepreneurial businesssuccess. As shown by the results, the odds of business successincrease by 67% if the formal education period is extendedby one year. Supportive environmental factors also significantlycontribute to business success. This study recommendsa policy that will help improving access to market for MSEs.Policy makers should consider strengthening the potential ofinstitutional support in terms of market information deliveredby public institutions to enhance the business success of agribusinessentrepreneurs in Ghana.

Keywords

• entrepreneurship
• business success
• Micro and Small Enterprises (MSEs)