Small and Medium-Sized Enterprise Owner Capability and Poverty Alleviation in the Central Region of Ghana

Abstract

Despite the significant contribution of SMEs in the country, their ability to alleviate poverty is often limited by owners’ skills and capability gaps. This study sought to assess the role that owner capability plays in ensuring the alleviation of poverty Ghana’s Central Region. This study specifically assessed how the three major capabilities namely educational capability, economic capability and social capability impacts poverty alleviation. It employed quantitative approach using an explanatory design. SME owners within the study area were given questionnaires. Responses in the study were analysed utilizing both inferential and descriptive statistical tools. The study revealed a positive substantial impact of educational capability on poverty alleviation, it further found a positive substantial impact of social capability on poverty alleviation. Economic capability also had a positive substantial impact on poverty alleviation. The study recommended that, management should emphasize on putting measures in place to provide some formal education and training necessary to SME owners. SME owners should attend business development programmes and other workshops in order to acquire the expertise required to run their businesses. Also, it further recommends that, SME owners should embark on initiatives that would enable them establish relationship with all key partners in their industry. The study finally recommends that SME owners, managers as well as business development centres should ensure that they keep an up-to-date information about the economy. Small and medium enterprise owners should be trained on the various financial products available on the market to enable them utilised the appropriate ones for their business growth and development to help alleviate poverty.