Growth and constraint analysis of micro and small scale agro enterprises in accra, Ghana

Type Journal Article - International Journal of Economics, Commerce and Management
Title Growth and constraint analysis of micro and small scale agro enterprises in accra, Ghana
Author(s)
Volume 3
Issue 3
Publication (Day/Month/Year) 2015
URL http://ijecm.co.uk/wp-content/uploads/2015/03/3310.pdf
Abstract
Micro small enterprises make up a significant portion of the private investments in the agroindustrial
sector of Ghana. Despite of it, these enterprises are bedeviled with a whole lot of
constraints. The study investigates the specific effects of identified constraints on the growth
potential of agro MSE in the Greater Accra region, Ghana. A multi stage sampling was used to
select a sample of 120 agribusiness operators in the region. Ordered probit model was used to
measure the effects of the identified constraint on growth potential of the business while the
linear OLS model was used to measure the effects of the constraints on growth performance.
The study revealed empirically that some constraints (i.e. high cost of production, insufficient
government support) hinder performance of agro MSEs whilst others (i.e. insufficient
government support, high cedi depreciation rate, lack of collateral) impede the growth potential.
The study recommends amongst others, that policy makers and stakeholders such as the banks
and financial institutions should come up with more innovative ways of guaranteeing loans, such
as marketing arrangements, in order to allow agro MSEs expand their businesses.

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