Ghanaian Small and Medium Scale Enterprises (SMEs) and the Challenges They Face in Foreign Market.

Abstract

Despite the strategic importance and possible benefits of internationalisation, it appears a number of Ghanaian SMEs have not been active and regular in serving the international market, because there seems to be some barriers hampering their operation, which have to be overcome. A number of international studies have indicated that it often comes with improved performance and competitiveness by providing large potential for growth to SMEs. This study focuses on how Ghanaian SMEs operate in international market and the challenges they face. It also tries to examine the strategies Ghanaian SMEs employed in entering international market as well as the benefits and the challenges associated with international marketing. Both qualitative and quantitative research methods were employed to solicit the opinion of sampled SME managers from a list of SMEs provided by the Internal Revenue Service (IRS).The results revealed that SMEs without international exposure faces marketing problem and Product quality challenges, while financial constraint is the key barrier for those SMEs with international exposure. In overcoming the challenges of marketing, the study recommends the institution of regular trade exhibition and allocation of a free space to SMEs.