Innovative Performance of Small and Medium Scale Enterprises

Abstract

A driving force for competition in the present business environment is innovation. In a rapidly changing world, the need for innovation has increased. In many ways, innovation has become an important tool in the management of organisations, ensuring they have real opportunities to advance. Whiles only few innovative performance studies of Small and Medium Scale Enterprises (SMEs) in Ghana have been conducted, they evince low levels of innovation among surveyed SMEs. Thus, a study that focuses on innovative characteristics of SMEs in the Ghanaian context is key. The aim of the study is to examine factors constraining innovative performance of small and medium enterprises in Adentan Municipality of Ghana. The survey method of data collection was used to sample 400 respondents selected to obtain primary data for the study. Descriptive statistics were applied to the quantitative data. The study revealed that uncertainty, and financial and technological related constraints are the major factors constraining the innovative performance of SMEs in the Adentan Municipality. The study also pointed to financial and technical support as possible ways to curb the constraining factors of innovative performance among SMEs. At the same time, SMEs need to promote workers’ access to technology to improve innovation processes and support growth by increasing investment in Information Communication Technology (ICT). Deliberate mechanisms to facilitate access to technical and financial support for SMEs by government is recommended.