Why SME-focused manifestos should be on the front-burner in this election year
SMEs in Ghana contribute significantly to the national economy. According to the Ghana Statistical Service, SMEs account for around 92% of enterprises in Ghana and contribute over 70% of the country's GDP.
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They also employ approximately 85% of the workforce in the private sector. Ghana's SMEs operate in a variety of industries, including agriculture, manufacturing, services, and commerce, contributing significantly to the country's economic diversification and resilience.
Despite their critical role, SMEs in Ghana confront several obstacles, including limited access to funding, inadequate infrastructure, regulatory barriers, and a lack of technical and management expertise.
Addressing these issues requires targeted policy and government support. As the December 2024 elections near, Ghana's political parties must recognize and priorities SMEs in their manifestos.
An SME-focused manifesto tackles current economic issues while also laying the groundwork for long-term development and inclusive prosperity.
This article explores the significance of SMEs in Ghana and provides persuasive arguments why political parties should priorities SMEs in their manifestos.
Economic growth and job creation
Small and medium-sized enterprises (SMEs) are important economic drivers and job creators. By assisting SMEs, political parties may boost economic activity, generate job opportunities, and eliminate poverty.
An SME-focused manifesto would show a commitment to creating a business-friendly climate, stimulating entrepreneurship, and promoting economic development.
This strategy can result in a more vibrant and dynamic economy that benefits all segments of society.
Innovation and competitiveness
SMEs are frequently at the forefront of innovation, developing new products and services and implementing new technology.
Political parties can boost the country's global competitiveness by putting SMEs first.
Policies that encourage research and development, incentivize innovation, and improve access to new technology can help SMEs become more competitive and resilient.
This, in turn, can boost productivity and growth in a variety of economic areas.
Diversification of the economy
The economy's reliance on a small number of sectors makes it sensitive to shocks. Small and medium-sized enterprises contribute to economic diversification by operating in a variety of industries, including underdeveloped ones.
A manifesto centered on SMEs can encourage diversification by supporting the establishment of new and growing industries.
This decreases the country's economic vulnerability while simultaneously creating new chances for investment and growth.
Addressing regional disparities
SMEs are frequently dispersed over multiple locations, particularly rural and neglected communities. By assisting SMEs, political parties can overcome regional differences and encourage balanced development.
Policies that offer infrastructure, financing, and training to SMEs in these areas can boost economic growth, minimize migration to metropolitan areas, and raise the standard of living in rural communities. An SME-focused manifesto can help to promote more equal and inclusive development.
Improving access to finance
Access to funding is a big difficulty for Ghana's SMEs. Political parties can address this issue by proposing policies that improve credit availability, give financial literacy training, and develop novel financing structures such as venture capital and crowdfunding.
An SME-focused manifesto that prioritizes access to credit may help entrepreneurs, expand businesses, and drive economic growth.
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Fostering sustainable development
Small and medium-sized enterprises (SMEs) have the potential to significantly contribute to sustainable development by implementing environmentally friendly practices and improving social well-being.
Political parties can help SMEs to adopt sustainability by providing incentives for green technologies, supporting corporate social responsibility initiatives, and encouraging environmentally friendly business practices.
An SME-focused manifesto emphasizing sustainability can contribute to the development of a resilient economy that benefits both current and future generations.
Conclusion
The impending December 2024 elections provide a rare opportunity for Ghana's political parties to demonstrate their commitment to economic development and inclusive growth.
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Political parties may address the major difficulties that SMEs face and maximize their potential by prioritizing them in their manifestos.
An SME-focused manifesto is not only a strategic move to boost economic growth, generate jobs, and increase competitiveness, but it is also a step towards attaining sustainable and equitable development.
As Ghana continues to navigate its economic path, the importance of SMEs cannot be emphasized, and political parties must rise to the occasion by prioritizing SMEs on their policy agendas.
Dr Andrews Ayiku, Lecturer/SME Industry Coach, Coordinator (MBA Impact Entrepreneurship and Innovation), University of Professional Studies Accra
ayiku.andrews@upsamail.edu.gh
IG: andy_ayiku
@AndrewsAyiku
F: Andyayiku
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