Performance of Micro and Small Scale Agribusinesses in Northern Region of Ghana: Non-financial Analysis

Abstract

The need for the reduction in poverty status of rural people through the development of Agribusiness is of paramount concern to most governments. Agribusiness in Africa is considered the catalyst for economic growth and poverty reduction. The importance of Agribusiness to the development of Ghana is quiet clear however very little is done to develop it. The broad question is, are these businesses not doing well? The paper is aimed at assessing the performance of Micro and Small Business using the non-financial method. 160 Micro and Small Business were surveyed across the northern region of Ghana using multi-stage sampling approach in 2012. The result showed that the four most important objectives of the entrepreneurs were achieved. This included; to increase level of household income, to increase security of household income, to enhance business profitability, and Satisfaction from running own Business. The most important challenges identified are, lack of working capital, Poor access to credit, and High cost of credit. There is agreement among the objectives and challenges identified by entrepreneurs of micro and small Agribusiness. Entrepreneurs were generally satisfied with the performance of their Businesses.