Factors Influencing Micro and Small Enterprises in the Adoption and Use of Policy Interventions: A Study on Smes in the Cape Coast Municipality.

Abstract

Policy Intervention has been identified as a critical element for the growth of Ghana’s Micro and Small Size Enterprises (SMEs) but more effective, evidence-based policy evaluation are required to inform future interventions. This paper sought to identify the level of adoption and use of policy interventions, factors which influence the inaccessibility of interventions among SMEs and how these factors can be managed to enhance the competiveness of indigenous SMEs. The study looked at policy and intervention issues on SMEs and adopted a descriptive approach by describing the situations and concepts related to the case under study. The study examined the overall level of awareness, adoption and use of identified support institutions such as the NBSSI, BAC, AGI, EMPRETEC, EDIF, GRATIS, GEPC, TECNOSERVICE, ADF, PEF, APDF and examined how SMEs were reacting to their interventions targeted at them. This work covered SMEs and their owner-managers in the Cape Coast Municipality. The study was limited to a population of 47 registered SMEs within the Municipality. The study adopted a descriptive design and randomly selected 33 SMEs, using a simple random technique. Questionnaire was the instrument used for data collection, using a list obtained from BAC, Cape Coast. Data collected was analyzed using descriptive statistics. The study found that there is nothing currently like SME policy in Ghana apart from Enterprise policy. The interventions that are being adopted and used by these SMEs are the business development services. The study found that most of these SMEs have a very good knowledge of these interventions and do benefit from most of them except for financial aids which genuinely impede their business activities. The paper recommends a holistic SME policy formulation by the government and policymakers, also government should cushion financial institutions in a way in which they can also encourage indigenous SMEs to access credit facilities.