Government Policies, Internationalization and ICT Usage towards SME’s Growth: An Empirical Review of Ghana

Abstract

Small and Medium-size Enterprises (SMEs) are the powerhouses of the economic development of many countries. This paper probes the dynamics on how Government Policies, Internationalization and Information and Communication Technologies (ICTs) usage of SMEs stimulate the growth and development of the Ghanaian economy. SMEs have been branded as the pillar of industrial development hence playing a vital role in the Ghanaian economy. However, few studies have investigated the growth and challenges SMEs encounter. This paper reviews existing literature as well as the empirical studies in order to identify the major determinants that stimulates SMES growth as well as the challenges most SME owners face. SMEs face many challenges in achieving economies of scale along with global competition. The challenges acknowledged in this research is a positive first step towards formulating a workable framework for SMEs to overcome. This research was primarily carried out in the Kumasi Metropolitan Assembly. Respondents for this research were small and medium businesses in operation from 2005 to 2015. The research was conducted using questionnaires. A total of 144 questionnaires were submitted to respondents in the Kumasi Metropolitan Assembly. Data was analyzed using SPSS version 21. Multiple regression analysis was employed in this study and the findings of this research indicated that policy adoption and the utilization of ICT has a significant impact on SME’s growth. However, most SME owners perceive internationalization as a significant but not a necessity towards their growth. The paper concludes by proposing some policy recommendations in assisting SMES to attain the much needed stimulated growth and development.