Effects of globalization on small medium-sized enterprise development in Ghana

Abstract

The paper examined the effects of globalisation on small and medium-sized enterprises (SMEs) performance in Ghana. By using the case study approach, the study selected the Kumasi Metropolis as the area for this study. The research delved into the level of familiarity of globalisation among SMEs, examined the influence of globalisation on SMEs performance and assessed the prospects and challenges globalisation poses on the SMEs market in Kumasi. Due to the nature of the population, a sample of 200 SMEs was selected for the study through purposive sampling. The study’s results revealed that the levels of awareness of globalisation among SMEs are generally known. Furthermore, most of the respondents consented that globalisation affects SMEs in acquiring knowledge and experience. Other enumerated effects include the availability of raw materials to increase performance, higher profits and better consultations with customers abroad than the domestic market. The study further found that the globalisation of SMEs was significantly affected by the level of competition from overseas competitors. Among others, the study recommended that the managerial capabilities of entrepreneurs of SMEs should be enhanced through periodic globalisation-based training programs, thereby acquiring in-depth comprehension of issues about globalisation and creating an enabling environment for SMEs to embrace globalisation. Key words: Globalisation, development, small and medium-sized enterprises (SMEs), performance, Ghana.