Contributions of Small Scale Textile Producers in Ghana towards Economic Growth: The Case of Tamale Metropolis and Its Peripherals

Abstract

The country’s economy is partly striving on the Small Scale Enterprises (SSEs) of which the textile sector is no exception. The demand gap being filled by SSEs of textile producers are recently being faced with challenges which affects their business turnover for economic growth. The study therefore researches into the production operations of SSEs in the textile sector, identify its importance to the economic growth of the country’s development, challenges facing the sector and profound solution for improvement. The study used descriptive statistics for frequency and percentages and inferential statistics of correlation and multiple regression analysis to identify the role of SSEs of textile producers in Tamale metropolis towards economic growth. A sample size of 208 SSEs operators of textile producers were used for the study with data collected through questionnaire. The study revealed that the sector augments gaps leftover by larger firms and providing niche markets for these local textile products. However, the sector is bedevilled with factors relating to cheaper imports of fabrics into the country, lack of managerial training, low quality standards for locally produced textile goods and lack of financial support from the formal sector among others. The sector’s activities contributes to employment, encourage investments in and outside the sector and provides some profit margin to those engaged in the sector. The study recommends training to overcome poor project planning and execution, availability and affordability of raw materials and financial support, improve technology adoption among other to ensure sustainable development and growth within the sub-sector. Keywords: small scale enterprises, textile producers, economic growth, employment DOI: 10.7176/EJBM/14-14-03 Publication date: July 31 st 2022