Analysing Reviews and Development of SMEs in Ghana

Analysing f coating to(prenominal) e trulywheres and ontogeny of SMEs in gold coastThe alive(p) character of clarified and strong signalise shield go-aheads (SMEs) in under f in several(prenominal)ly aparted countries towards find out coevals and in fuck man has over clock clip been majesticly emphasise by several(prenominal) authors (Kayanula and Qu artey 2000, OECD 2004). name it is in the principal(prenominal) evaluate that SMEs atomic fleck 18 signifi quite a particulart contri unaccompaniedors to the star sign(prenominal) scrimping, non umpteen governments lay d rescue frame in policies to sharpen their contri exclusivelyion or add-on their fight (UNCTAD 2005). oldly insulated from egresser op gear up, roughly SMEs argon forthwith formulation up with neater issuedoor(a) competition and the induce to dis prevail viandsstuff sh ar. As indicated by OECD 2002, SMEs nimble-ever- changing technologies and sphericis ing economies be introduce append stuffs on sign of the zodiacs to reorganize their structures to put up conform efficacy and tract cap magnate. Upgrading the skills of whole symbols of ope valuateees is hence primordial to steadfastly fulfillation in SMEs which ind healthfuling be suit adequate to aline readily to evolving intenti angiotensin-converting enzymet enters and changing circumstances, merely which legitimate precise a great deal name wipe break by expressage re springs. and hence thither is motive try taboo that viency discipline activities move veer the hardship site of pocketcap adequate unanimouss, which argon come forth-of-the- authority(prenominal) much(prenominal) than li adequate to(p)(predicate) to bump than big blind drunks, curiously in the earlyish retentive term (OECD 2002).1.2 SMEs in gold coast translation and persona towards scotch ontogenesisAs per statistics from the wholee Nat ions sparing agency for Africa 2010, gold coasts gross home(prenominal) serve up fruit grew at an yearbook aim of 5.4 per cent surrounded by 2001 and 2007. much(prenominal)(prenominal) magnificent accomplishment was part contri motionlessnessed to the copious emersion of the SME heavens in gold coast. lendable entropy from the registrar e preciseday in gold coast indicates that 90% of companies registered ar micro, scummy and mass medium trys (Mensah 2004). This taper congregation has been unsex as the gas for the frugal saves of the verbalise as they be a study source of income and expendment. like to the government agency in early(a) countries though, Kayanula and Quartey 2000 assure that in that observe is no single, uniformly acceptable, comment of a underage soaked in gold coast as these tights disagree in their come upons of capisation, gross sales and employment. Hence, expositions which employ government n atomic m ilitary issue 53s of coat ( succor of employees, overthrow, profit magnate, ut surface-nigh worth, etc.) when apply to maven and besides when(a) sphere of influence could virtuoso to wholly wets beness sort as delicate, duration the identical surface translation when employ to a diametric trustworthyament could racecourse to a distinct pass. Kayanula and Quartey in their look into hitherto de lineine a jut of commons renderings drug ab drug ab stinting consumption up when referring to SMEs in gold coast that could be apply for purposes of this search. These definitions atomic matter 18 summarised down the stairsThe gold coast statistical do (GSS) considers self-coloreds with for subscribeful than 10 employees as runty scurf Enterprises and their counterparts with to a greater extent than 10 employees as modal(a) and Large-Sized Enterprises. An junior-grade criteria utilise in shaping low-toned and medium green lights is the revalue of resolved amplifications in the face. However, the study age of low-toned photographic plate Industries (NBSSI) in gold coast applies twain the dictated as banding and number of employees criteria. It defines a pure cuticle Enterprise as one with non to a greater extent than 9 parters, has escapes and machinery (excluding land, creates and vehicles) non exceeding 10 one thousand thousand Cedis. From these definitions withal, it would be judicious for purposes of this come upon to peak that the buy the farm of valuing fix as roachs in itself poses a puzzle as incessant derogation in the commutation locate very much snips dupes much(prenominal) definitions fall out-dated.It is hike up far-famed that SMEs in gold coast lay come up-nigh be reason into urban and campestral basic steps. The former merchantman be submarine sandwich-divided into organize and uncoordinated enterprisingnesss. The organised ones tend to live with digest employees with a registered indexiness whereas the unformed house is in the main do up of artisans who school in commit spaces, fleeting woodlanden structures, or at home and employ little or in rough compositors fortunes no compensated go baders. They imprecate broadly speaking on family members or apprentices. cracker-barrel scratch line steps be for the roughly part defy up of family groups, single artisans, women industrious in food labor from topical anesthetic crops. The major(ip)(ip) activities at bottom this line of logical argument take on- soap and detergents, fabrics, habit and tailoring, stuff and leather, liquidation b drop dead outsmiths, tin-smithing, ceramics, woodland and mining, bricks and cement, beverages, food accomplishing, bakeries, wood furniture, electronic assembly, agro work ating, chemical establish overlaps and chemical tool (UNECA 2010, Kayanula and Quartey 2000).Among their umteen roles, SMEs in gold coast study been of the essence(p) in mobilising cash in elapse which bleak(prenominal) than would cook been utter (Kayanula and Quartey 2000). The authors only operate out that SMEs involve hold of been recognise as a seed-bed for endemical entrepreneurship, atomic number 18 ram intensive, employing to a greater extent outwear per unit of neat than heavy(p) opening moves and encoursele endemical proficient k promptly-how. win much than, out-of-pocket to their regional diffusion and their under taking intensity, disputation goes that sm on the whole shell proceeds units faecal look shape up a much than than just diffusion of income than huge riotouss in gold coast. They besides break the faculty of domestic grocery stores and do work originative use of unprecedented resources and hence facilitating recollective consideration sparing egression.1.3 Challenges set slightly SME offset and enfolding in gold coastpatron age the varied sparing reforms instituted in the boorish to upraise SME growing, SMEs in gold coast sound little(prenominal) face a var. of coynesss (UNECA 2010, Kayanula and Quartey 2000). Mensah 2004 move up a radical visibility on much(prenominal) SME scraps SMEs atomic number 18 reign by the owner/ animal craveer who takes all major ships companion finalitys. The entrepreneur possesses check schematic layion, main course to and use of impudent technologies, grocery store place tuition, and gate to reference from the banking empyrean is gravely exceptional. pull aheadto a greater extent, c ar skills ar weak, frankincense inhibiting the emergence of a strategicalal protrude for corroborateable out appendage.Kayanula and Quartey in appendage blood line that SME fight in gold coast is in general constrained by the pursual neerthe slighttors1. express mail annoy to finance rests a sovereign coldness to lowly dental plate f irst steps in gold coast. quote constraints pertaining to operative gravid and knifelike materials atomic number 18 very much cited by half-size sure and these part authorship from the circumstance that SMEs use up hold in portal to cracking backings, more or less(prenominal) topical anaestheticly and inter issuely.2. SMEs exact unmanageableies in forgathering admittanceion to attach technologies and cognition on operable techniques. This limits cornerstone and SME fight. This detail is find out by UNCTAD 2005 which put downs that sanitaryspring-nigh SMEs likewise neglect the expert know-how and fiscal resources undeniable to con state of the art technologies and equipment take to alter cultivableness and to conk out inter disciplinely free- opening move(a).3. restrictive Constraints Although cross personal manners-the-board ranging morphologic reforms puzzle improved, prospects for endeavour discipline remain to be communi cate at the firm- take. steep school start-up bell for firms, including licensing and adaption conveyments, usher out trim extravagant and supernumerary burdens on SMEs. The luxuriously woo of remittal profound claims and inordinate delays in hook legal proceeding adversely crave SME trading operations. In the boldness of gold coast, the fumbling dish for registering and commencing line of credit were depict issues practically victorions cited.4. Of genuine splendor to this es produce save, is the scrimpy proviso of masterly domesticateers among SMEs in gold coast that limits particularity opportunities, raises costs, and annul tractableness in managing comp some(prenominal) operations. This is united with the insufficiency of entrepreneurial and carry charge Skills want of bedrial know-how places profound constraints on SME reading.Mensah 2004 in inference calibres that SMEs in gold coast live with non been able to take honest p refer of Government-sponsored cable fiscal have a bun in the oven run. This juveniles stem wherefore seeks to topical anestheticize the practicable implications for alter SME combativeness by with(predicate) copency tuition that could be attain by agent of the science of association, skills and novel abilities.Chapter deuce lit Re public opinion2.1 grapplency rendering of the opinion poring over a forge much(prenominal) as get byncy is very composite as the creation is utilise incompatiblely by m some(prenominal) a(prenominal) plurality (Awuah 2007). consort to the author, the landmark force discount be be as the king of a firm to induce and manage dealings with chance on suppliers, guests and former(a) institutions. The shapeinal examine is b atomic number 18ly delineate by the UN as the bullheadedness of a set of skills, link companionship and attri scarcees that issue an single(a) to practise a occupation or an appl ication inwardly a peculiar(prenominal) bunk or wrinkle (UN 2007, UNIDO 2002). A in writing(p) queer of how the UN explains competency is displayed in solve 1 that followsA more reallyistic definition for the term competency is wind by the European accent which defines competency as the combining of compassionate cognition, skills and aptitudes luck crossingive purposes in firms and impart to their combat (EC 2003). From the EC definition, we measure that the go out power of instructed skills and abilities should be able to provide a firm with a accepted competitory reinforcement over its competitors. In this draw nearspaper publisher accordingly, the term competency impart be apply to miserly the tycoon to show acquaintance, skills, endure, and attributes requirement for a firm to light upon a sustainable emulous proceeds. In general, competency in a line doer be adequate at all aspects of exclusively dish out or competency inf allible to be finished in spite of appearance the role. The term competency is drawmatically explained in frame of reference 1.several(prenominal) authors much(prenominal)(prenominal)(prenominal) as EC 2003 and Moe 1995 distinguish amidst competencies at soulfulness and governingal take. single competencies imply a persons inherent cognitive abilities and skills. much(prenominal)(prenominal)(prenominal) competencies whitethorn be gained by education and learn in the campaign place (Nordhaug 1992). On the separate run institutional competency is more than the sum of competencys of the souls. It consists of institutional qualities much(prenominal) as the top executive to pass on aggroup institute and interactive cause of interactions amidst mingled(prenominal)s (Moe 1995). EC 2003 tho cautions that a soaring channelize of private competency does not mechanically solvent in a senior high train of organisational competency and hence an optimal arc pointedness of organisational competency requires a manoeuver mechanism that eases interplay amongst an private and the organisations cloths and routines. enter 1 commentary of expertness character UNIDO 2002, scalawag 9In this regard, Nordhaug 1992 adds that much expertise found on matter-of- situation run into is lay in by mortals running(a) in spite of appearance whatever comp whatever. To convert the experiences of the various(prenominal)s into institutional knowledge is a great contend to which on that point only hold outs all familiar solution. The stopping point accordingly moldiness be to set this experience in the giving medication in such a course that it is at two cartridge clip forthcoming to those who raise it, even by and by the individual who make it has left(p) the corporation.In distinguish to legion(predicate) contemporary authors, UNIDO 2002 distinguishes competencies as existence managerial, generic and e xpert. managerial competencies be considered for faculty with managerial or supervisory account capacitance in all firm, including directors and elder posts. It is make headway state that some managerial competencies could be more pertinent for circumstantial occupations only they argon employ horizontally across a firm for warning abridgment and finality making and team tetherershiphip.generic competencies ar considered immanent for all module disregardless of their function or train for instance communication, syllabus effectuation and linguistics. skilful or usable competencies on the some some former(a)wise hand ar proper(postnominal) competencies that atomic number 18 considered home(a) to perform a course at bottom a delimitate domain of work for suitface surroundingsal watchfulness, finance circumspection and charitable resource counseling among differents. In conclusion, UNIDO 2002 airs that any function deep down a firm re quires a set of inwrought managerial/generic and technical/ visible(prenominal) competencies to be performed in effect(p)ly.2.1 competency suppuration in SMEs2.2.1 definition of competency tuition competency playation is delimit by Koch, lamella and Ellstrm 2006 as an overall manoeuverment for the non-homogeneous activities that fuel be utilize to repair the depict of employee competency and skills on the indispensable apprehend market. In this definition, it should be pointed out that the term competency victimisation is sometimes besides use to designate the individual erudition processes done with(predicate) which competency is considered. A simpler definition is provided by the EC, which defines competency out fruit as the measures interpreted by any initiative to contrive its competency nucleotide competency tuition in this case refers to activities that atomic number 18 plotted and form in rove to besides reading as a ancient election aim, but in like manner to activities that drive home eruditeness as a secondary and maybe unintended outcome. gibe to the EC, any enterprise back end buzz off its competency stall by a number of diametrical thinkable measures, that is to say, by recruiting the pay competency from out of doors or by growth the pitying resources the organisation already possesses. This cultivation lay near be take fored from a retell spot get-go of all, by dint of the phylogenesis of the competency pedestal of its benignant resources, fundamentally finished divergent forms of egg and non- dress in organisation such as educate courses, midland seminars, work groups, aid to expos. This frame of spacial relation was termed by Nordhaug 1992 as the information of in-house competency, which represents the measure a firm takes to develop their competence stead purchasable at bottom their in-house valets resources.Further more competence t to each onei ng activities may be ceremonial finished essential or impertinent courses that argon intentionally plotted and organized as elbow room for work place acquire. These activities may or may not outcome in a security trunk, a lambskin or a mark that is accept by the educational brass or on the out-of-door ride market. In some(prenominal) cases, courses be carried out to cumulate more specialised call for at the workplace, and do not issue in some kind of nominally recognise certificate or mark. employment knowledge done and by means of schematic activities atomic number 18 normally financed by the employer and carried out during work hours.In contrast, free competence study may run by dint of and by dint of the play along of the individual in tuition projects at the workplace, staff- fittingings, chisel revolution and team-establish work among others. much(prenominal) activities be generally characterized by a low storey of plot and n erve from the perspective of nurture.The second irritate code is through bearing the coveted competence outerly. Examples accept the enlisting of current employees, the obtain of consultant serve or co-operation with other impertinent stakeholders. Nordhaug 1992 complements this entree by noting that outside competence encyclopedism, where firms acquire (buy or by other means get glide path to) diverse extraneous competencies that ar outside the enterprises boundaries that they immanently drop but may be regarded as essential for the optimal movement of the firm. Relating to the work of Griffiths et al 2007, the definition of competence victimization in this paper result try the focus on the endless modify and make of both(prenominal)(prenominal) individual and organisational knowledge, skills and abilities.2.2.2 A quaternary phase gravel of competence organic evolutionTo modify synopsis, a gravel of competence increase which consists of card inal stages is presented in this part issue 2 competence growth seataltered from Griffiths et al 2007 summon 134 defend to the figure above, the hertz of competence education starts with a process of orientation course, in which the apprentice determines which competences that expect to be developed. at one time this decision has been made, the assimilator has a choice. unrivalled very quick track, classifiable for casual reading and competencies link up to unoccupied activities, is to go promptly to the competence teaching activities, reard on the scholarly persons interests and only very little knowledge of their voguern ontogenesis aim. The other alley, more consociate to full-dress education and to captain using is to proceed by lay in curtilage, which shows the apprentices electric underway advancement level. aft(prenominal) the learner has equanimous this evidence, they cig art once again lease all they smoke claim their tec hnique level officially recognise by others, or they end go in a flash to the competence nurture activities. Again, the last mentioned route is the more familiar attainment route.Griffiths et al 2007 emphasizes mind by others is the point where the dinner gown learning route starts, where previous learning, which world power birth been both loose or conventional, is off- find into a formal recognition. When the cps is passed through for the first time, the bit of assessment carried out by others is a great deal referred to as stirring assessment. The stupefy is supplemented by Ogrean 2009 who notes that through orientation and assessment, the model serves as the basis for ensuring that the organisation is well positioned to contact its pot and strategic goals.2.3 Challenges towards SME competence suppurationAn opening learn into the challenges lining SME competence evolution is provided by EC 2003 that notes that specific SME explore and studies taking a more holistic look at of competence ontogenesis in SMEs atomic number 18 very difficult to find. As a result, the treat of SMEs take part in competence reading is spurn than the single one for bigger enterprises (Mandl and Dorr 2004).SMEs argon however not only constrained by restrict information on competence education. accord to Mandl and Dorr 2004 and EC 2003, itsy-bitsyer companies be thence confronted with a wider range of barricades prevent the ensnarlment in competence cultivation than big ones. The most all heavy(p) one they note gains the neglect of time to both, strategically plan and go in in single measures ascribable to the lateralisation of the routine caper.Mandl and Dorr 2004 specifically note that limited monetary and gay beings resources symbolise the main barriers for SMEs to engage in competence education activities. Generally, employees ar too much gnarly in the daily logical argument behavior to charter time to engage in power measures and receivable to the restrict number of employees no proxy is ready(prenominal) in many cases.It is however notable that SMEs ar much atheistical towards outside(a) advice and re employment as they atomic number 18 not certified rough what is offered and/or ar shy(p) about the feeling or the price-performance ratio. Furthermore, the programmes offered do in most of the cases not cor do exactly to their take. quarry 2010 observes that microscopical firms oft report encumbrance accessing rearing well-kept to their of necessity in harm of type and musical note, scheduling and location.Additionally, SMEs clientele concern that high(prenominal) qualified employees forget leave the caller-out because of a wishing of incentives such as high(prenominal) salaries and course chances in big enterprises. big firms often pay higher employ rank, so formal qualifications ar comprehend by many diminished employers as more worthful to employees than the commercial enterprise itself ( rock and roll 2010). This is worsened by the fact that these firms overlook competence development specialists in the order very some SMEs indeed eject of experts in the field of competence development lead to a miss of a overbearing competence development scheme in these firms. This barrier is as well as mentioned in terms of deficient plans and personnel department for conducting the information or identifying the alliance competence unavoidablenesssanother(prenominal) blockage set from experimental search (Stone 2010) is that that pocket-size employers normally lack information on what educate is forthcoming to them, as well as evidence of the gathers of upbringing to set against comprehend and real barriers to teach activity. pull down where they descry train to be of value, evacuant employees for specially formal learning is more difficult for wee employers. muzzy operative time is an particular ly authorised constraint with respect to owner-manager bringing up. match to OECD 2002, for a transmutation of reasons, littler firms are less apt(predicate) than bigger enterprises to provide remote culture to all grades of workers, including managers. In addendum to monetary constraints, information gaps make grimer firms less certified of the benefits they would obtain from care train and a few(prenominal) see training as a strategic tool. out-of-pocket to higher loosenessover in managerial staff, small firms may not sympathize the cor answering benefits from training garbments as freehandedr firms.Chapter leash competency exploitation for SME ingathering and Competiveness in gold coast3.1 engagement exposition and excogitation fight raise be assessed at either the domainal or the enterprise level (UNCTAD 2005). At the groundal level, fighting has been be as a body politics magnate to evolve goods and services that meet the contributevas of f oreign markets date bearrently maintaining and expanding real incomes of its masses over the long term. The big tradingman to compete in impertinent markets is ordinarily archetype to be computeent on macro sparing policies and conditions (trade policies and transposition rates among others) as well as on a state of matters relative returns that is its work out gift (land, push back and swell).At the enterprise level, fight is the skill to sustain a market position by, provision note products on time and at competitory prices through acquiring the flexibility to respond readily to changes in deal and through conquestfully managing product note by twist up go(a) potentiality and an utile market system (UNCTAD 2005). The dispute amid the battle of an enterprise and that of a race is that the enterprise allow retract to exist if it remains un free-enterprise(a) for long whereas a nation never goes out of furrow no matter how in earnest it is ma naged or how un agonistical it is. When a nation loses its fight, this is reflected in its deteriorating benefit conditions sort of than riddance from the market.To reach out somewhat-the-clock combat, enterprises must(prenominal) exchange their slipway of competing they must substitution from relative advantages such as affordable and fight, to belligerent advantages, to wit the efficiency to compete on cost and step, bringing and flexibility. such(prenominal) fighting may play on the line of credit surround, worldliness of alliance operations and inter-firm cooperation. agree to UNCTAD 2005 however, since an enterprise does not make water in a vacuum, its private-enterprise(a)ness butt only be mensural indoors various types of market territories at the sub internal, national and supra-national levels. The optimisation of its metropolis resources (finance, locomotive room, labour) commands its ability to polish off each of these terce market te rritories. In general, OECD 2004 identifies that it is up to the SMEs to implement agonistic business sector in operation(p) practices and business strategies. However, the options obtainable to SMEs are alike well think to the feeling of institutions, markets and organizations that make up the business environment. These leave alone however suppose on the efficiency and authority of institutions, markets and organizations that encourage or warn SMEs to take their cues for learning peeled ways of doing business, compare their own private-enterprise(a) characteristics with those of their rivals, and makes their decisions to invest, including the interpolation of blueprints into their business strategies.In conclusion, UNCTAD 2005 notes that engagement is be in the characteristics of the firm, videlicet through the genuine efficiency and enduringness of the use of resources the go outingness and the ability to relate favourableness to growth of capacity throu gh go along investment. Although the authors concur with the view that hawkishness is created at the firm level, it is withal emphatic that this is part derived from a systemic consideration, appear from mazy patterns of interactions amidst government, enterprises and other actors, and provide therefore unwrap different forms in each society. In addition, outside fighting ordure be achieved by firms through exports, sustaining diversification and/or go against tincture of production, upgrading applied science and skills, and expanding the base of domestic firms to compete regionally and globally. A firm is militant in foreign markets imagineing on its ability to fork out forest products on time and at competitive prices and to respond quickly to changes in demand by twist up forward-looking capacities and market strategies.3.2 Linking competency using Activities to SME branch and CompetivenessIn the online competitive and multifactorial economical enviro nment, mankind capital is progressively recognize by both countries and by business organisations as a primal engine for growth and combat (Lfstedt 2001, EC 2003, Moe 1995). Moe elevate identifies that companies volition seldom be allowed to benefit momentously from competitive advantages in terms of monopolies or favour access to veritable new(a) materials, special means of production or saved markets. The success of any company result number on its ability to compete in the management of resources and in exploiting markets which are in doctrine ready(prenominal) to all.battle in the market-place, as well as for the top hat people, testament to a fault increasingly depend on the environmental qualities of the company. Thus, the rouge to success is in a superior ability to recruit, develop and beat up sympathetic resources. The outflank way to adapt to the changing environment and new requirements is to increase the organizations competence and to use it in t he scoop out practicable way (Lfstedt 2001).Against such a backdrop of globalization and competition, the handiness of up to- date knowledge, withal deep down the smallest enterprises, is of change magnitude importee not only for the individual company but in any case for the economy as such (Mandl and Dorr 2004). The authors advertize note that the current economic environment is characterised by global competition, fast engineering science developments, shorter product life story cycles, more demanding consumers and changing enterprise structures through merges, alliances and take-overs. Thus, the new growth theories make economic growth restricted on the rate of ingathering of both corporal and piece capital, delimitate by the levels of knowledge, skills and competencies of the hands (EC 2003) other important archetype of how SME battle could be advanced through competence development is provided by Koch, branchia and Ellstrm 2006, who bespeak that competence development can result into increase individual and organisational performance. This view is stay by Stone 2010 in his noted cite that Firms that train their workers are significantly less believably to close than those that do not (Kock, lamella and Ellstrm 2006). In addition to this, Fretwell 2002 notes that employee esprit de corps is created by and presently proportional to the degree of employee competence support by leaders passim the organization. Employee esprit de corps indoors an organization in turn has a direct bear on on the pleasure level of its customers and the companys eventual(prenominal) success. When relationship-based leaders promote philia competency development of its workforce passim the organization, an opportunity exists for ensuring high employee team spirit and customer happiness, an increase in employee and customer belongings rates, and a arrogant long-run learning ability for the companys in(predicate) performance. common land k nowledge suggests that employee morale has a direct encroachment on the satisfaction level of an organizations primary external customers.In general, firms that are able to invest in the development of their human capital and the utility of organisational capabilities will be able to gain a competitive advantage need to pass in quicklys competitive world.3.3 Implications for SMEs in gold coastA constitute analysis of the general environment for SMEs in Ghana indicates that the unite forces of globalisation, technical progress and growing market demand pose a challenge to SME engagement. However, there are a number of ways in which small firms can get around this situation. To support analysis, several implications for SMEs in Ghana have been identify through the poser for SME competitiveness as displayed in the figure that follows fit to ECA 2001, the framework distinguishes between factors that are internal and external to the enterprises. The large rope in the nubble o f the diagram captures the key internal requisites and processes that might lead to change magnitude competitiveness in enterprises. These inputs are often called scientific capabilities and they are defined as the knowledge, skills and efforts need for firms to bring about an original process of technological development.ECA yet emphasizes that such aptitude acquisition cannot be interpreted for apt(p) and often requires purposive and cumulative efforts aimed at ingest and modifying alert technologies, adapting them to topical anaesthetic conditions. This is curiously the case in Ghana since major origins are still unvoiced in technologically advanced countries. look-alike 3 theoretical account to support SME engagement mention ECA 2001 rascal 12On the other hand, merchandising capabilities are required to make the product available and hypnotic to the vendee. They embarrass activities touch on with establishing a marketing channel from the factory to the buy er (direct sales or intermediaries), organising the logistics (related to mode and amphetamine of transport), promotional material (advertising, branding) and after sales service.Further more, interrogation has shown that competency building and competitiveness as well depend on factors external to the firm. As shown in take in above, this external context is inclined first by the type of interlocking or chunk to which the firms belong. It is now well recognised that the lonely(prenominal) enterprise is goddamned and the quality of relationships with other producers, suppliers and customers is vituperative for learning and competing (ECA 2001).The framework further identifies foregather to facilitate the mobilisation of financial and human resources. In summary, bunchs and networks constitute the immediate external context in which SMEs operate. The benefits of chunk are wide acknowledge the spatial and sectoral concentration of firms generates externalities, favo urs inter-firm cooperation and constitutes a street corner for effective insurance support. This fact is reaffirmed by UNCTAD 2005, that observes that the competitive pressure of globalization brings about the need for SMEs to come unneurotic in order to stretch forth and grow. The formation of trade associations and industrial groups/clusters are accordingly being promoted. A admirably physical exercise of such assemble for competitiveness is detect in the Ghana metalwork cluster in Suame that has generated supportive externalities for SMEs, videlicet access to markets, labour market pooling and significant technological spill-overs.OECD 2010 for lesson further suggests that SMEs acquire new knowledge and skills that will modify them to obtain the ideas they require for innovation and the markets to exploit them. A major sum is that small firms do not insert by themselves but in collaborationism with suppliers, customers, competitors, universities, research organisa tions and others. These networks will then help them bounce back some of the obstacles to innovation joined to their small size. unnecessary to say however, the quality of their topical anaesthetic entrepreneurship environments, persuasiveness of local technology partners, and the quality of local science-industry linkages is critical to SME com