Institutional response to the promotion of small scale industries in Ghana

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During the colonial and post-colonial period, Small Scale industries (SSIs) have unnoticeably played a very important role in the economic development of the country. The unrecognized role emphasized the fact that policy formulators underscored the importance of the Small Scale sector in the economic development of Ghana. The sector provided and has continued to provide: • goods and services for local consumption, • employment, • income and foreign exchange, and • labour and raw material for medium and large industries. Changes in both the national and international economic climate have led to the recognition of the role of the Small Scale industrial sector in the national economic development and growth. Hence, government policies are directed towards the growth and development of SSIs. The objectives of this study are to identify the institutions which promote the growth of the SSIs, assess the linkages and co-ordination among them and institutional support they offer to SSIs. In undertaking the study, four categories of institutions were studied namely: regulatory institutions, development institutions, promotional institutions and financial institutions. These institutions so established are not equipped well and encouraged to spread their tentacles well to cover the rural SSIs. Efforts at increasing their coordination and linkage are not the best particularly the financial and regulatory institutions. In all, 150 SSIs based in Greater Accra, Ashanti and Brong Ahafo Regions were selected and interviewed. In addition, various non-governmental organizations were consulted. For the SSJs and the institutions established to promote growth and development to perform well they should be a science and technology plan, favourable economic policies, easy access to institutionalized credit, effective ways of transferring research findings and a national committee for Rural Small Scale Enterprises. While conceding the fact that enough time and funds were not available to fully digest the study exhaustibly, I wish to state that this study will be of immense help to both researchers and policy formulators and implementers who would use it as the basis for either further research to advise public and private stakeholders in the development of SSIs.
A Thesis submitted to the Board of Postgraduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfilment of the requirements for the degree of Master of Science in Development Policy and Planning, 2000